Investors have become more cautious about US stocks in recent weeks.
Johannes Eisele/Getty Images
Dow Jones futures climbed on Monday after five straight days of falls for the stock index.
Oil prices rose above $70 in the US, with supply slow to recover from Hurricane Ida.
Elsewhere, Chinese stocks dropped after the FT reported that Beijing is looking to break up Alipay.
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Dow futures rose Monday after the stock index suffered five straight days of falls, while US oil prices climbed above $70 as supply struggled to meet strong demand as the economy reopens.
Futures for the Dow Jones Industrial Average were up 0.45% at 4.50 a.m. ET, setting the index up for a rebound after its 0.78% drop on Friday. S&P 500 futures were also up 0.45%, and Nasdaq 100 futures were 0.38% higher.
Investors were less optimistic about Asian stocks, as China’s ongoing crackdown on big business weighed on sentiment. China’s CSI 300 index was down 0.44%, while Hong Kong’s Hang Seng declined 1.66%.
The Hang Seng Tech Index of Chinese and Hong Kong companies dropped 2.3% after the Financial Times reported that Beijing wants to break up the sprawling technology group Alipay.
In Europe, the Stoxx 600 moved 0.37% higher in early trading, while London’s FTSE 100 climbed 0.5%.
US stocks fell markedly in the week to Friday as doubts set in about the strength of the economic recovery and the Federal Reserve’s willingness to keep up its support as inflation runs hot.
Wall Street banks have become more gloomy about the outlook for stocks. Deutsche Bank’s analysts said Thursday that a sharp market sell-off could be imminent, with stock prices looking “historically extreme.” Goldman Sachs downgraded its forecast for US growth in 2021.
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However, Alex Kuptsikevich, senior market analyst at trading platform FxPro, said US stocks have consistently been finding support from investors “buying the dip” when they’ve fallen over the last few months.
The big event for investors this week is the release of US consumer price index inflation data for August on Tuesday, which could impact Fed policy. CPI is expected to come in at 5.3%, after steadying at a 13-year high of 5.4% in July, according to economists polled by Bloomberg.
“With the US Federal Reserve due to meet next week, and the narrative clearly moving towards a tapering of asset purchases sooner rather than later, there appears to be a build up in anxiety that the continued rise in inflationary pressure may well be much more persistent than central bankers would have us believe, with the resultant rise in yields and rebound in the US dollar,” Michael Hewson, chief market analyst at CMC Markets said in a note.
Elsewhere in markets, US oil prices rose above $70 a barrel to around their highest level since July, with data from the Bureau of Safety and Environmental …read more
Source:: Business Insider