Stocks Steady, Futures Rise as Policy Woe Eases: Markets Wrap – Yahoo Finance

(Bloomberg) — Stocks were mixed and U.S. equity futures were steady Wednesday as investors assessed prospects for an economic recovery, while concern eased that faster inflation would spur policy tightening. Treasuries fell.

Contracts on all three U.S. equity benchmarks were little changed, after two days of gains for the S&P 500 Index. European equities edged lower as a drop in retailers and consumer shares outweighed gains in commodity sectors. Asian equities advanced.

Oil climbed above $73 a barrel after data signaling another decline in U.S. crude stockpiles added to a bullish outlook.

Markets are steadying this week after last week’s volatility spurred by the Federal Reserve’s hawkish tilt at its meeting. Chair Jerome Powell on Tuesday said the central bank would be patient in waiting to lift borrowing costs, and reiterated that while price increases are bigger than expected, they will likely wane.

The Fed’s shift last week to acknowledge higher inflation and pull forward its rate hike projections is “a reflection of more positive longer-term dynamics,” BlackRock Investment Institute strategists led by Jean Boivin wrote in a report. “We believe the Fed’s new outlook will not translate into significantly higher policy rates any time soon. This, combined with the powerful restart, underpins our pro-risk stance.”

Elsewhere, commodities including copper and iron ore climbed. Bitcoin rebounded, rising past $30,000.

For more market commentary, follow the MLIV blog.

Here are some events to watch this week:

U.S. new home sales, current account balance on WednesdayEIA crude oil inventory report due WednesdayBank of England interest rate decision ThursdayThe Fed releases Thursday the results of stress tests on the largest U.S. banks

These are some of the main moves in financial markets:

Stocks

The Stoxx Europe 600 fell 0.3% as of 10:16 a.m. London timeFutures on the S&P 500 were little changedFutures on the Nasdaq 100 were little changedFutures on the Dow Jones Industrial Average rose 0.1%The MSCI Asia Pacific Index rose 0.3%The MSCI Emerging Markets Index rose 0.9%

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1937The Japanese yen fell 0.2% to 110.91 per dollarThe offshore yuan was little changed at 6.4850 per dollarThe British pound was little changed at $1.3961

Bonds

The yield on 10-year Treasuries advanced one basis point to 1.47%Germany’s 10-year yield was little changed at -0.17%Britain’s 10-year yield was little changed at 0.79%

Commodities

Brent crude rose 1% to $75.57 a barrelSpot gold rose 0.3% to $1,784.33 an ounce

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