Global Markets Mixed; U.S.-China Trade Talks in Focus

By Dow Jones Newswires Staff

U.S. stock futures pointed to a slightly lower open Monday after gains last week buoyed by optimism around U.S.-China trade talks, and after the U.S. jobs market held up better than expected.

The main focus this week is on those trade talks in London, while U.S. inflation data for May are due on Wednesday.

Ahead of that, it was a mixed bag for global equities to start the week, with gains in Asia despite weak data out of China and after GDP data showed Japan's economy shrank in the first quarter, with most European markets a touch lower and some closed for the Whit holiday.

• U.S. stock futures for the S&P 500 were last down 0.1%, stock futures for the Dow Jones Industrial Average were flat and those for the Nasdaq were down 0.1%.

• Stocks in China rose, with the Shanghai Composite Index gaining 0.4% even after CPI stayed in negative territory and PPI deflation worsened sharply, while trade data was also soft. The trade talks helped buoy sentiment, however. Hong Kong's Hang Seng climbed 1.4%, Japan's Nikkei 225 index gained 0.9%, and South Korea's Kospi jumped 1.6%.

• In Europe, the Stoxx Europe 600 dropped 0.1% shortly after the open, France's CAC 40 fell 0.1% and Germany's DAX fell 0.4%. The U.K.'s FTSE 100 was flat. Some European markets were close for the Whit holiday.

• The dollar fell as Friday's better-than-forecast U.S. jobs data failed to provide lasting support. The DXY dollar index against a basket of major currencies was recently down 0.3% to 98.929.

• The focus for the U.S. bond market this week will be Thursday's auction of 30-year Treasurys, where yields are hovering close to 5% and investors cautious after weak demand at a 20-year Treasury auction three weeks ago. The 30-year Treasury yield was recently up 1 basis point to 4.972%, according to Tradeweb data.

• Oil prices ticked lower following the weak Chinese data, but remain broadly supported by optimism surrounding the trade talks. In early European trading, Brent crude and WTI slipped 0.6% to $66.09 and $64.22 a barrel, respectively.

• Gold futures are broadly flat amid mixed macroeconomic signals. Futures are flat at $3,344.50 a troy ounce. The precious metal is up more than 23% year to date, though its rally has slowed as crucial U.S. data points to a stronger-than-expected U.S. economy.

Write to Barcelona Editors at barcelonaeditors@dowjones.com