Futures Rise As Oil Jumps, Yields Gain, Yen Tumbles

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by TYLER DURDEN at zerohedge.com

Global stocks markets struggled for direction and US equity futures were flat in Monday’s quiet session following a rally Friday that pushed the Nasdaq 100 nearly 2% higher amid optimism that a soft landing for the world’s biggest economy is within reach. Sentiment was shaken by early weakness in Treasuries – which briefly pushed the 10Y yield to 4.0% after the BOJ was forced to intervene unexpectedly in the bond market one day after “tweaking” its YCC – continued strength in the USD (which sent the yen tumbling contrary to what virtually all so-called experts predicted), and a rally in commodities, and especially oil (and gasoline) which has soared in recent days.

As of 7:30am, US equity futures were 0.1% higher at 4,612 while Nasdaq futures were largely unchanged. Treasury yields edged higher, mirroring moves in UK and European bond markets. Gold drifted lower, while Brent climbed over $85 and to a level where markets will soon realize that headline inflation is about to storm right back; Bitcoin rose 0.3%. Apple and Amazon.com are among companies reporting earnings in the coming days.

The yen tumbled against the dollar, crushing the BOJ’s carefully laid plans to strengthen the currency, after the Bank of Japan announced unscheduled bond-purchase operations to buy debt. The BOJ was seeking to contain a selloff after it said Friday it will allow yields to rise above a 0.5% cap and JGBs promptly did just that. 

In premarket trading, Johnson & Johnson shares fall 1.5%, after a judge dismissed the pharmaceutical company’s second attempt at using a unit’s bankruptcy case to press tens of thousands of cancer victims to drop their lawsuits and accept an $8.9 billion settlement. Wells Fargo said the decision should not be a surprise, while Cantor Fitzgerald sees potential liabilities being manageable. Ford Motor dropped after the stock was cut to hold at Jefferies “with a heavy heart,” following results which saw worse-than-expected losses on electric vehicles and a “strategic wobble.” MetLife Inc. gained after Bloomberg News reported that Singapore insurer Great Eastern Holdings Ltd. is in talks to buy the company’s Malaysian venture. Here are some other notable premarket movers:

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