U.S. stock futures edged down to start the week, while global indexes were mixed, as investors assessed downbeat signals about the health of the global economy.
The pullback in futures suggested the U.S. stock market, which is closed Monday for the Independence Day holiday, could come under renewed pressure Tuesday.
The S&P 500 last week closed out its worst first half since 1970, and the index ended the week down 2.2%. Central banks have been raising interest rates to counter inflation, and investors are trying to gauge if the moves could lead economies into recession.
Factories around the world are reporting weakening demand for products. The development suggests that fervent demand for consumer goods during the pandemic boom could turn into a bust as surging prices and higher rates erode spending power. U.S. household spending also slowed in May, the Commerce Department said last week.
Futures tied to the S&P 500 slipped 0.4% and contracts on the tech-heavy Nasdaq-100 fell 0.5%, while Dow Jones Industrial Average futures shed 0.3%.
BZmain, CLmain slid 0.16% and 0.3% separately; Gold rose 0.27% and reached $1806.5; VIXmain rose 0.25%.
“Clearly we’re coming off of a soggy week,” said Mark Matthews, head of research for Asia at Julius Baer. “Direction from the U.S. is still broadly negative.”
European stocks were broadly higher Monday despite disappointing data from Germany.
Europe’s manufacturing powerhouse reported its first trade deficit since 1991 in May. Exports fell 0.5% while imports increased 2.7%, thanks in part to surging energy costs, according to data from the German statistics office.
The pan-continental Stoxx Europe 600 rose 1%, while the U.K.’s FTSE 100 added 1.1%.
Shares of American electric-vehicle makerTeslathat trade in Milan fell 0.8% to 644.90 euros a share. On Saturday, the company said its quarter-over-quarter deliveries fell for the first time in more than two years after an extended shutdown of its largest factory in Shanghai.
Energy producers led gains Monday. Oil-and-gas firm Harbour Energy added 3.9% in London trading, while BP rose 3.7% and Shell rose 3%. France’sTotalEnergiesrose 3.2%.
Meanwhile shares of Uniper SE, one of Europe’s largest utility companies, lost 1.2% as it continues discussions with the German government over a bailout. The utility said last week that its profitability has been hit by Russia’s move to cut natural gas supplies to Europe.
Asian stocks were mixed. Hong Kong’s Hang Seng Index fell 0.1% after a long weekend to commemorate the territory’s 25th anniversary of its return to Chinese rule. Japan’s Nikkei 225 added 0.8%, and South Korea’s Kospi Composite declined 0.2%.
In mainland China, the benchmark CSI 300 index of the largest stocks listed in Shanghai and Shenzhen rose 0.7%, and the Shanghai Composite rose 0.5%. Growth in China, which is still sticking with its zero-tolerance approach to Covid-19, has tumbled this year with mass lockdowns and business closures during outbreaks. But Beijing has recently shown signs of opening up, with authorities last week cutting quarantine periods for inbound travelers.
Nomura analysts said they expected some stabilization in Asian stocks late in the third quarter, if there are clear signs of U.S. inflation moderating, or if the Federal Reserve turns less hawkish.
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