Steady Futures Pricing: Inflation Data and Earnings Season

Stock futures showed little movement on Monday. Investors prepared for a series of inflation data releases later in the week and geared up for the start of the second-quarter earnings season.

Futures tied to the Dow Jones Industrial Average rose by 39 points or 0.11%. Meanwhile, Nasdaq-100 futures dropped 0.19%, and S&P 500 futures lost just 0.03%.

This week’s inflation data follows the Federal Open Market Committee’s decision. They announced the desire to hold rates steady at its June meeting. The consumer price index report is set to be released on Wednesday. Following the event, the producer price index will measure wholesale price pressures on Thursday.

Mixed Movement in European Shares: Recovery After Initial Losses

Last week, Wall Street experienced losses. The S&P 500 pulled back by 1.16%, while the Nasdaq Composite and Dow Jones Industrial Average fell by 0.92% and 1.96%, respectively.

In fact, nonfarm payrolls grew less than expected in June. However, stronger-than-expected wage growth raised concerns about the possibility of additional Federal Reserve rate hikes.

Investors will also be closely monitoring quarterly earnings reports this week, with major financial institutions such as BlackRock, JPMorgan Chase, Wells Fargo, and Citi scheduled to report and kick off the second-quarter earnings season.

European Shares Recover Losses

In Europe, the pan-European Stoxx 600 index hovered slightly above the flatline in mid-morning trading after recouping initial losses of around 0.3%. Oil and gas stocks gained 0.8%, while basic resources declined by 0.9%.

Futures Trading Strategy: U.S. Treasury Yields Mixed

U.S. Treasury yields showed mixed movement on Monday as investors awaited the latest remarks from Federal Reserve officials and key inflation data, which is expected to provide insights into the central bank’s FTSE futures interest rate policy decisions.

The yield on the 10-year Treasury increased by over two basis points to 4.0698%, while the 2-year Treasury traded around one basis point lower at 4.9209%.

Alibaba Shares Surge Amid Regulatory Hope

Shares of Alibaba listed on the Hong Kong stock exchange rose as much as 5% in Monday morning trade as investors hoped that the years-long scrutiny of its financial arm, Ant Group, may be coming to an end.

Following a strong opening, the bond futures have since pared some of their gains but remained approximately 3.2% higher than their closing price on Friday.

Regulatory Scrutiny Conclusion

Chinese regulators fined Ant Group 7.12 billion yuan ($985 million) on Friday for violations of laws and regulations. The act signalled the potential conclusion of Beijing’s two-year crackdown on domestic tech companies.

Regulators stated that most of the outstanding issues related to the financial businesses of platform companies have been resolved. Besides, the domestic tech industry will undergo “normalized supervision” in futures pricing.