U.S. stock futures fall on high-yield moodiness: Markets retreat

(Times Of Update) — U.S. stock futures extended their decline as Treasury yields near their highest levels this year stoked concerns about tight monetary policy.

Most read on Times Of Update

U.S. stock contracts pointed to a second day of decline on Wall Street, while Europe’s Stoxx 600 was little changed at the open. The MSCI Asia-Pacific index fell to a three-week low, led weaker by South Korea and Japan. The 10-year Treasury yield hovered around 4.60% after jumping 15 basis points over the past two days, while a gauge of dollar strength edged higher for a third session.

Global stocks are heading for their worst week since mid-April as it begins to dawn on us that U.S. rate cuts aren’t likely anytime soon given persistently stubborn inflation . Another weak U.S. auction result on Wednesday heightened concerns that U.S. deficit financing could push up yields at a time when the Fed is in no rush to ease policy.

This week’s data could prove crucial as investors refine their outlook for monetary policy: the United States will release gross domestic product figures later Thursday, and inflation reports from the United States and the Europe will be expected on Friday.

“The market has fallen for the genius of the bond market and higher yields,” said Tony Sycamore, market analyst at IG Australia Pty Ltd. inflation data tomorrow.

Elsewhere, the rand extended its losses as vote counting for South Africa’s elections gathered pace. The Chinese yuan was little changed after falling to its lowest level since November on Wednesday.

South Africa’s ANC could lose national majority, model suggests

In the commodities sector, Brent crude fell 0.3% to $83.32 a barrel as traders look to U.S. inventory data and this weekend’s OPEC+ meeting for more clarity on the supply and demand outlook.

Company strengths:

• China is set to impose a record fine on PricewaterhouseCoopers LLP and suspend some of the global auditor’s local operations over its role in one of the country’s largest alleged financial fraud cases, sources say close to the file.

• Golden Goose is launching a primary offering of 100 million euros ($108 million) in an IPO in Milan as the Italian luxury sneaker brand aims to strengthen its capital structure and reduce debt.

• Saudi Arabia is set to officially launch a secondary offering of shares in oil giant Aramco on Sunday, a deal that could raise more than $10 billion and rank among the largest of its kind in recent years.

• Brookfield is in exclusive talks to acquire a majority stake in Neoen SA in a deal valuing the French renewable energy developer at around €6.1 billion.

The story continues

Key events this week:

• Eurozone economic confidence, unemployment, consumer confidence, Thursday

• First unemployment claims in the United States, GDP, Thursday

• Fed’s John Williams and Lorie Logan speak Thursday

• Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday

• Officially manufactured and not manufactured by China…