Stock markets around the world remained under pressure overnight as investors continue to grapple with the prospects for stagflation a period of low economic growth, highlighted by Friday’s poor US nonfarm payrolls report, and high inflation, highlighted by stronger than expected US wage growth and still-rising energy prices. This morning for example, WTI crude oil is up another 0.5% and trading above $80.00/bbl.
US index futures are trading flat to up 0.3% this morning, as they try to stabilize following yesterday’s 0.6%-0.7% declines for US indices. Over in Europe, the Dax and the FTSE are both down about 0.3%. Asia Pacific trading saw the Hang Seng drop 1.4% and the Nikkei fall 0.9%.
Markets have been drifting through a desert of limited business news but that changes tomorrow with the rest of this week being quite active with a number of potential developments which could move markets. US earnings season kicks off tomorrow with results from JP Morgan and Blackrock. Big US banks dominate the calendar for the rest of the week as well with Bank of America, Citigroup and Morgan Stanley reporting Thursday and Goldman Sachs plus Wells Fargo reporting on Friday. There are no major Canadian earnings reports this week.
Economic news picks up again tonight with trade numbers out of China, followed by inflation and retail sales reports for the US (consumer prices Wednesday, producer prices Thursday and retail sales Friday) and China over the rest of the week.