Stocks were mixed on Wednesday as they headed for monthly declines on concern that restrictive monetary policy to tackle price pressures will harm the global economy. A dollar gauge and Treasury yields advanced. 

US futures were little changed, while European shares reversed earlier gains to trade at the lowest level in more than six weeks. Euro-area inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a jumbo interest-rate hike when it meets next week. ECB Governing Council member Joachim Nagel urged a “strong” reaction.

Energy shares and utilities led declines in Europe, extending their selloff to a fourth session as investors fret over Russian gas supplies at the start of a three-day halt of the key Nord Stream pipeline. 

Oil headed for a third monthly drop — the longest losing run in more than two years — hampered by the likelihood of slower global growth. European natural gas advanced after a two-day slump, with traders weighing risks to Russian supplies against the continent’s drastic efforts to curb the energy crisis.

Market bets on a shallower trajectory for Federal Reserve tightening are receding, raising the prospect of more losses for stocks and bonds in an already difficult year. Investors are scouring incoming data for clues on the policy path, with August US jobs figures on Friday the next key report.

“What’s clear is that predicting this market is not clean cut,” Angeline Newman, a managing director at UBS Global Wealth Management, said on Bloomberg Television. “We are living in a world where conflicting economic signals are making the path of monetary policy very difficult to determine.”

“What’s clear is that predicting this market is not clean cut,” Angeline Newman, a managing director at UBS Global Wealth Management, said on Bloomberg Television. “We are living in a world where conflicting economic signals are making the path of monetary policy very difficult to determine.”

An Asian stock gauge climbed in a mixed day that saw tech shares advance but Japan’s bourses retreat. BYD Co. plunged in Hong Kong after Warren Buffett’s Berkshire Hathaway Inc. trimmed its stake in the electric vehicle maker.

Here are some key events to watch this week:

ECB Governing Council members due to speak at event Tuesday through Sept. 2
Euro-area CPI, Wednesday
Russia’s Gazprom set to halt Nord Stream pipeline gas flows for three days of maintenance, Wednesday
Cleveland Fed President Loretta Mester due to speak, Wednesday
China Caixin manufacturing PMI, Thursday
US nonfarm payrolls, Friday
UK leadership ballot closes Friday. Winner announced Sept. 5
Will Chinese sovereign bonds outperform Treasuries? China is the theme of this week’s MLIV Pulse survey. Click here to participate anonymously.

Some of the main moves in markets:

Stocks
Futures on the S&P 500 were little changed as of 6:15 a.m. New York time
Futures on the Nasdaq 100 rose 0.4%
Futures on the Dow Jones Industrial Average fell 0.1%
The Stoxx Europe 600 fell 0.7%
The MSCI World index fell 0.8%
Currencies
The Bloomberg Dollar Spot Index rose 0.1%
The euro fell 0.3% to $0.9987
The British pound fell 0.2% to $1.1632
The Japanese yen was unchanged at 138.79 per dollar
Bonds
The yield on 10-year Treasuries advanced five basis points to 3.15%
Germany’s 10-year yield advanced five basis points to 1.56%
Britain’s 10-year yield advanced 12 basis points to 2.83%
Commodities
West Texas Intermediate crude fell 3.1% to $88.82 a barrel
Gold futures fell 0.8% to $1,722.20 an ounce

SOURCE :- bloomberg