U.S. equity futures drop with stocks; Twitter slumps - BNN Bloomberg

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U.S. equity futures drop with stocks; Twitter slumps - BNN Bloomberg
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US equity futures dropped along with European stocks Monday as traders await the key second-quarter earnings season for indications on how companies are weathering the inflation storm

Contracts on the S&P 500 and Nasdaq 100 were lower, suggesting last week’s rally in US stocks my stall. Twitter shares slumped in premarket trading after Elon Musk terminated his US$44 billion takeover approach for the social media company. The Stoxx Europe 600 index shed about 0.5 per cent, with carmakers and miners among the worst-performing sectors as concerns about China’s COVID resurgence also weighed on risk appetite.

Price pressures, a wave of monetary tightening and a slowing global economy continue to shadow markets. A US inflation reading later this week is expected to get closer to 9 per cent, a fresh four-decade high, buttressing the Federal Reserve’s case for a jumbo July interest-rate hike. Company earnings will shed light on recession fears that contributed to an US$18 trillion first-half wipe-out in global equities.

Chinese stocks had their worst day in about a month as a COVID resurgence combined with fresh fines for the tech giants sent investors running for the door. An Asian equity gauge shed 1 per cent. Japan was a bright spot, buoyed by the prospect of administrative stability after the ruling coalition expanded its majority in an upper house election.

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