European stock futures are appreciating slightly on Monday morning as investors continue to assess declines in cryptocurrencies, the inflation outlook in major economies and China’s attempt to lower commodity prices in manufacturing.
By this time, futures on the Euro Stoxx 50 – which groups the 50 largest companies in the region – gain 0.1% and futures on the US S&P 500 advance 0.2%. Shares recorded modest gains in Japan (0.4%), China (0.1%), and Australia (0.2%), but fell in Hong Kong (-0.4%).
The rise in commodity prices remains in focus in China, which has been trying to cool the escalation, with the country promising severe punishments for violations ranging from excessive speculation to spreading fake news.
Market indicators of inflation expectations have eased recently, but concerns persist that the post-pandemic recovery could increase price pressures and force a retreat from extraordinary central bank support. For now, Treasury yields and the US dollar remain steady.
Global equities have lost some steam and there is some fear on the part of investors to invest in riskier assets, especially after the robust fall in cryptocurrencies, especially bitcoin.
