U.S. equity futures climbed and stocks in Asia dropped Monday as investors assessed inflation risks amid improving economic activity. The dollar held onto gains.
Hong Kong led losses amid low volumes with Japan and China, as well as the U.K., among markets closed for holidays. U.S. and European futures edged higher after the S&P 500 dropped from a record Friday, amid data pointing to price pressures and talk of a possible pullback in central bank support. Still, the U.S. gauge capped its biggest monthly rally since November.
Australia’s 10-year government bond yield inched up, after the Treasury benchmark held above 1.6%. The yen dropped. Crude oil headed lower, while gold ticked up.
Inflation remains a key concern for investors. The latest U.S. data show fiscal stimulus helped drive the strongest monthly gains in personal incomes in records going back to 1946, and the Federal Reserve’s preferred gauge of prices rose by the most since 2018. Though last year’s pandemic shock has skewed some data, such readings fuel speculation that central banks may start to withdraw support by trimming asset purchases.