? Dollar steadies, 10-year Treasury yields rise ahead of retail sales data.
? Brent spikes.
? Stock markets mixed; S&P 500 set to open lower.
? Lira falls on president's monetary policy comments.
? Vodafone's CEO to leave.
The dollar strengthened as benchmark 10-year Treasury yields topped 3% ahead of U.S. retail sales data. Global stock markets were mixed as Brent crude prices neared $80 a barrel on fears of Middle East unrest and China-U.S. trade talks remained in focus. Futures pointed to the S&P 500 opening lower.
Ten-year Treasury yields gained 2 basis points to 3.015% by 7 a.m. ET, and the dollar strengthened 0.23% against the safe-haven yen.
While headline retail sales growth is expected to halve from its 0.6% month-over-month pace in March, investors may still find reasons for bullishness, Brown Brothers Harriman said in a note. "The details should be healthier, and the components used for GDP calculations [are] expected to remain at a firm 0.4%."
The euro slipped 0.12% against the dollar after eurozone economic growth slowed to an annual 2.5% in the first quarter.
Yields on 10-year U.K. Gilts rose by 1 basis point as wages grew by 2.9% annually in the three months to March, the fastest rate since mid-2015, prompting ING to say that markets may be underestimating the risk of a summer rate hike by the Bank of England.
The Turkish lira shed 1.2% to a record low against the dollar after President Recep Tayyip Erdogan said he could take greater control over monetary policy if re-elected in June. Nerves over some emerging markets have grown as Argentina was forced to seek a loan from the International Monetary Fund. Its peso fell another 8% in trade May 14.
"With these challenges unresolved, investors may have little appetite to put more money to work in [emerging markets] and be happy to keep funds in cash — namely [the U.S. dollar]," strategists at ING Research said.
The Euro Stoxx 50 slipped 0.13% while the FTSE 100 rose 0.29%. Vodafone Group PLC's shares fell 3.6% after news that CEO Vittorio Colao is stepping down after 10 years in the job. CFO Nick Read will replace Colao, effective Oct. 1.
The Shanghai SE Composite rose 0.57% as China reportedly considered easing tariffs on certain U.S. agriculture products in exchange for U.S. assistance with ZTE Corp. Hong Kong's Hang Seng index closed 1.23% lower.
Brent crude oil spiked 1.19% to $79.16 per barrel on the ICE Futures Exchange after Israeli troops killed dozens of Palestinians in Gaza on May 14 and European nations sought to salvage a nuclear deal with Iran. Gold shed 0.72% to $1,308.70 per ounce.
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The day ahead:
8 a.m. ET — U.S. Fed's Robert Kaplan speaks
8:30 a.m. ET — U.S. retail sales (Econoday consensus: 0.3% monthly)
8:30 a.m. ET — U.S. Empire State manufacturing survey (Econoday consensus: 15.5)
8:55 a.m. ET — U.S. redbook
10 a.m. ET — U.S. business inventories (Econoday consensus: 0.2% monthly)
10 a.m. ET — U.S. housing market index (Econoday consensus: 69)
1:10 p.m. ET — U.S. Fed's John Williams speaks
4 p.m. ET — U.S. Treasury international capital
7:50 p.m. ET — Japan GDP (Econoday consensus: Constant quarterly)