U.S. index futures are slightly down in Monday’s pre-market trading, marking the start of a week that is eagerly awaited due to the announcement of U.S. inflation data, as well as the beginning of the first quarter financial results season.
At 06:26 AM, Dow Jones futures (DOWI:DJI) fell 18 points, or 0.05%. S&P 500 futures fell 0.08%, and Nasdaq-100 futures lost 0.02%. The yield on 10-year Treasury bonds was at 4.44%.
In the commodities market, West Texas Intermediate crude oil for May fell 0.91%, to $86.12 per barrel. Brent crude for June fell 0.90%, near $90.35 per barrel. Iron ore traded on the Dalian exchange rose 3.19% to $109.41 per metric ton.
On Monday’s economic agenda, the highlight is the monthly consumer inflation expectation, scheduled for 11:30 AM. At the same time, there will be a Federal Reserve bond auction with 3 and 6-month maturities, also scheduled for 11:30 AM.
European markets start the week positively, awaiting significant economic updates and the next European Central Bank meeting on Thursday, where monetary policy guidelines will be discussed. Although no immediate changes in interest rates are expected, there is a growing expectation in the markets of a possible cut in June, despite recent adjustments in the Federal Reserve’s schedule.
Asian markets closed mostly higher, with Japan standing out, where the Nikkei advanced 0.91%, driven by the electronics and automotive sector. The Kospi indices in South Korea (+0.13%), the Hang Seng in Hong Kong (+0.05%) and the ASX 200 in Australia (+0.20%) had modest gains. The exception was the mainland China Shanghai SE index, which performed negatively (-0.72%) after a two-day holiday.
U.S. Treasury Secretary Janet Yellen expressed openness to various measures during her visit to Beijing, including tariffs on China’s green energy exports, aiming to create level playing field conditions in the sector. She highlighted the need for adjustments in Chinese policy, especially in reducing local subsidies. Yellen emphasized the importance of ensuring opportunities for American companies and workers in future industries, given concerns about competitiveness hampered by subsidized Chinese products.
On Friday, U.S. stocks recovered considerably, reflecting renewed market optimism. Major indices, including Dow Jones, S&P 500, and Nasdaq, recorded gains of 0.80%, 1.11%, and 1.24%, respectively, erasing some of Thursday’s losses. This movement was driven both by the search for attractively priced stocks and by a positive response to a Department of Labor report, which showed job growth higher than expected for March.
The report also said that the unemployment rate fell to 3.8% in March, from 3.9% in February, while economists expected the unemployment rate to remain unchanged. Despite the recovery on the day, the Dow plummeted 2.3% last week, while the S&P 500 fell 1.0% and the Nasdaq retreated 0.8%.
Ahead of the quarterly reports, the companies that will announce this week include JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), Delta Air Lines (NYSE:DAL), BlackRock (NYSE:BLK), Constellation Brands (NYSE:STZ), CarMax (NYSE:KMX), State Street (NYSE:STT), Fastenal (NASDAQ:FAST), Infosys (NYSE:INFY), WD-40 (NASDAQ:WDFC), and Neogen (NASDAQ:NEOG).
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