Equity Futures Jump On Inflation Data

U.S. equity futures jumped after economic data suggested that inflation pressures remain tame.

• S&P 500 Futures climbed 0.3% as of 8:46 a.m. New York time; the Stoxx Europe 600 grew 0.3%; the MSCI Asia Pacific rose 0.4%; and the MSCI Emerging Market Index gained 0.8%.
• U.S. 10-year Treasuries rose to 1.55%; Germany’s 10-year yield fell to -0.31%; Britain’s 10-year yield dropped to 0.719%; and Japan’s 10-year yield grew to 0.128%.
• The core consumer price index increased 0.1% from a month earlier and 1.4% from the previous year.
• Analysts say the rising trend in bond yields is consistent with economic growth expectations. This favors cyclicals over defensive assets, and supports equities over bonds and a weaker greenback.
• While inflation data suggest price pressures remain subdued, the $1.9-trillion stimulus plan and the pickup in vaccinations are spurring economic recovery.