Asian stocks were steady and U.S. equity futures edged lower Monday as traders weighed Janet Yellen’s comments on higher interest rates and awaited this week’s U.S. inflation report.
Shares fluctuated in Japan and dipped in Hong Kong, while S&P 500 and European contracts were in the red. Treasury Secretary Yellen said President Joe Biden should push forward with his spending plans even if they spark inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”
Benchmark 10-year U.S. Treasury yields and the dollar ticked up. Investors continue to assess whether price pressures will lead central banks to pare stimulus earlier than expected. The S&P 500 rose toward a record Friday on a jobs report that showed a pickup in hiring but fell short of estimates, suggesting scope for ongoing policy support.
Meanwhile, the Group of Seven rich nations secured a landmark deal that could help countries collect more taxes from big firms and enable governments to impose levies on U.S. tech giants such as Amazon.com Inc. and Facebook Inc.