Futures mixed before inflation, treasuries steady

U.S. equity futures were mixed before inflation data that may help decide the course of the Federal Reserve’s tightening path. Bonds stabilized.

S&P 500 futures dipped after the S&P 500 shed 2.4 per cent Thursday, while contracts on the tech-heavy Nasdaq 100 were steady. The Stoxx Europe 600 Index fell 1.5 per cent, with all sectors in the red. 

Treasury yields steadied near the 3 per cent level while German government bonds recovered after a selloff following the European Central Bank tilt toward aggressive policy and the possibility of a half-point interest-rate hike later in the year. 

Investors will be closely watching the US inflation reading. An upside surprise would be a setback for both the Fed and markets, raising doubts about how well rates are working to subdue prices rising at a clip of more than 8 per cent.