US Stock Futures Advance; Dollar Gauge Declines: Markets Wrap

(Bloomberg) — S&P 500 futures and crude oil climbed Tuesday amid positive sentiment from China’s rollback of Covid isolation measures and cooling of a key inflation measure in the US.

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Contracts for the equities benchmark rose about 0.5%, while those for the tech-heavy Nasdaq 100 advanced 0.7%. Oil jumped about 1.4%, supported by the outlook for demand in China and as freezing weather across the US prompted refinery closures.

The offshore yuan held a gain from overnight after China announced it would drop quarantine for inbound travelers early next month. A gauge of dollar strength declined.

US Treasuries will resume trading following an extended break since the close of a holiday-shortened session in the US on Friday. The benchmark 10-year yield climbed the most last week since early April, ending around 3.75%.

Investors are taking encouragement from data on Friday that showed the Federal Reserve’s closely watched measure of inflation cooling and consumer spending stagnating. Still, price pressures from the tight labor market remain a concern for the Fed and a challenge to bets that interest rates will be cut next year.

Benchmark equity indexes for mainland China, Japan, India and South Korea climbed on Monday. Most other key markets in the region including Hong Kong, Singapore and Australia were shut. Hong Kong and Australia remain closed Tuesday.

Key events this week:

China industrial profits, Tuesday
US wholesale inventories, Tuesday
BOJ summary of opinions of Dec. 19-20 meeting, Wednesday
US initial jobless claims, Thursday
ECB publishes economic bulletin, Thursday

Some of the main moves in markets:

Stocks

Currencies

The Bloomberg Dollar Spot Index fell 0.2%
The euro was little changed at $1.0642
The Japanese yen rose 0.1% to 132.74 per dollar
The offshore yuan was little changed at 6.9751 per dollar
The Australian dollar rose 0.3% to $0.6745

Cryptocurrencies

Bitcoin rose 0.1% to $16,850.17
Ether rose 0.4% to $1,221.26

Bonds

Commodities

West Texas Intermediate crude rose 1.4% to $80.76 a barrel on Friday
Spot gold rose 0.3% to $1,803.25 an ounce

This story was produced with the assistance of Bloomberg Automation.