US futures and Treasury yields were little changed on Wednesday after Wall Street notched its biggest daily drop in about three weeks yesterday.
S&P 500 mini futures were up 0.09 per cent to 2,711.50, while Dow futures were up 0.07 per cent to 24,677. Meanwhile Nasdaq 100 futures were up 0.1 per cent to 6,899.75.
That signalled markets are likely to tread water on opening, following a sell-off on Tuesday on the back of upbeat retail sales data that raised prospects the Federal Reserve could adopt a more hawkish monetary policy stance. The drop also came amid a jump in Treasury yields that pushed the 10-year to its highest level since 2011 and above a key psychological level of 3 per cent.
The yield on the US 10-year Treasury was roughly flat at 3.072 per cent Wednesday morning. Yields move inversely to price.
On the docket today are results from US department store Macy’s, housing starts figures and industrial production data. Markets will also closely watch developments on trade talks and North Korea.
Pyongyang has threatened to withdraw from a planned summit with the US if it continues to feel pressure to “unilaterally” abandon its nuclear weapons programme. North Korea also axed talks with Seoul in response to joint South Korea-US military drills. Meanwhile, China’s vice premier is visiting Washington for discussions on tariffs.
The moves also follow steady trading in European bourses, though Italian debt came in focus after the nation’s two main populist parties moved nearer to a coalition government having apparently discussed plans to request the European Central Bank to cancel €250bn in Italian debt.