U.S. stock futures rose on Monday, while investors continued to flee bonds as turmoil in energy markets captured worldwide attention.
- Futures on the Dow Jones Industrial Average
rose 147 points, or 0.4%, to 34821
- Futures on the S&P 500
rose 0.3%, or 13 points, to 4459
- Futures on the Nasdaq 100
added 0.1%, or 11 points, to 15333
On Friday, the Dow Jones Industrial Average
rose 33 points, or 0.1%, to 34798, the S&P 500
increased 7 points, or 0.15%, to 4455, while the Nasdaq Composite
dropped 5 points, or 0.03%, to 15048.
What’s driving markets
The global energy crisis took center stage on Monday. Power shortages led to forced factory production cuts in China, while in the U.K., a shortage of truck drivers led to hoarding and declining inventories at gas stations.
Analysts at Goldman Sachs hiked their oil-price forecast to $90 a barrel, citing the impact of what it said was the most bullish hurricane in U.S. history on supply.
These energy disruptions highlight what’s been a growing issue for the global economy, namely that supply has not recovered as fast as demand in a variety of markets. Costco Wholesale
last week said it imposed limits on purchases of toilet paper and water.
Markets continued to cast a wary eye on the impact of China Evergrande’s debt troubles on the world’s number-two economy, while elections in Germany, the number-one European economy, have so far failed to produce a decisive results in what’s expected to be months of coalition talks.
There are a number of Federal Reserve officials due to speak this week, with Monday including speeches from Chicago Fed President Charles Evans, New York Fed President John Williams and Fed Gov. Lael Brainard.
“Despite this bullish opening for stocks, this week’s trading landscape is difficult to read,” said Pierre Veyret, technical analyst at ActivTrades. “The lack of a clear winner in Germany’s election combined with a new batch of speeches from most central bankers may slow the rally down. In addition, investors’ eyes are cautiously monitoring the situation in China where both the energy and liquidity crises are worsening, increasing worries of a knock-on impact on other economies.”
- The yield on the 10 year Treasury
rose to 1.48%, following the biggest weekly rise in yields in six months.
- Futures on light, sweet crude oil
rose over 1%, to $74.97 a barrel.