Stocks benefit from rate prospects and dollar declines: markets fall – Yahoo Finance

0
Stocks benefit from rate prospects and dollar declines: markets fall – Yahoo Finance

(Bloomberg) — European stocks edged higher in tight trading after a European Central Bank official signaled that policymakers could consider successive rate cuts starting next month. Nasdaq 100 futures rose 0.4% to a record high as U.S. markets closed.

Most read on Bloomberg

Automakers and utilities led a modest advance in the Stoxx Europe 600 index. Turnover was less than half the 20-day average for that time of day as UK and US markets were closed for vacation. US stock futures rose and the dollar indicator fell.

The ECB should not rule out lower borrowing costs at its June and July meetings, Governing Council member François Villeroy de Galhau said, opposing fellow monetary policymakers who are poorly comfortable with the idea of ​​consecutive reductions. Chief economist Philip Lane said earlier that the central will have to maintain a restrictive policy until 2024, even after cutting interest rates next month.

An ECB rate cut in June has been widely announced, but subsequent steps are less clear given uncertainty over wage growth and factors such as fighting in the Middle East. Data this week may show that headline inflation in the euro zone rose slightly in May.

“European inflation is back,” even if the May peak could be temporary, Crédit Agricole SA strategists led by Jean-François Paren wrote in a note. “This does not call into question the June reduction but adds the risk of additional price reductions later. »

Among individual movers in Europe, EFG International AG rose 4.7% after a Bloomberg report after market close Friday that Julius Baer Group Ltd. is exploring a potential acquisition of its rival Swiss private bank. Julius Baer slipped 0.8%.

The MSCI Asia-Pacific index posted its biggest rise since May 16, led by stock indicators from Hong Kong, China and Japan.

A raft of inflation figures from Australia to Japan, the euro zone and the United States are due this week as traders place fine bets on the outlook for monetary policy. The Federal Reserve’s preferred measure of underlying inflation is due Friday and is expected to show slight relief. Fed Chairman Jerome Powell has stressed the need for more evidence that inflation is on track to meet the 2% target before easing policy.

John Williams, Lisa Cook, Neel Kashkari and Lorie Logan are among the US central bankers scheduled to speak this week.

Read more: About the ‘T+1’ rule that allows US stocks to settle in one day: QuickTake

Trading in spot Treasury bills was closed. The “T+1” rule, which could potentially cause problems for foreign investors, will go into effect when traders return from the long weekend, causing U.S. stocks to settle in one day rather than two.

Meanwhile, gold gained, while copper futures fell. Oil advanced after its biggest weekly loss in four years, with focus on the OPEC+ supply meeting on Sunday and US demand at the start of the summer season.

Some notable events this week:

  • The IMF is talking to Ukrainian authorities on Monday to review their economic policies as the country seeks to release the next tranche of $2.2 billion in aid.

  • Cleveland Fed President Loretta Mester speaks at BOJ event in Tokyo; Minneapolis Fed President Neel Kashkari and ECB Governing Council member Klaas Knot will address the Barclays-CEPR International Monetary Policy Forum on Tuesday.

  • South African elections, the most significant since the end of apartheid, on Wednesday

  • The Fed publishes its economic survey in the Beige Book on Wednesday

  • South Africa rate decision, US initial jobless claims, GDP, wholesale stocks, Thursday

  • New York Fed President John Williams speaks at the Economic Club of New York on Thursday.

  • GDP data released Friday for Canada, Eurozone and Turkey

  • Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday

Some of the main market movements:

Actions

  • S&P 500 futures rose 0.2% to their highest level since May 21 at 3:58 p.m. New York time.

  • Nasdaq 100 futures rose 0.4% to record high

  • Dow Jones Industrial Average futures rose 0.2%, more than any closing gain since May 21.

  • The MSCI World index increased by 0.2%

  • The MSCI Asia-Pacific index rose 1%

  • The MSCI Emerging Markets Index rose 0.7%

  • The Stoxx Europe 600 increases by 0.3%

  • S&P/BMV CPI rose 0.1%

  • The Ibovespa index increased by 0.1%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2%

  • The euro rose 0.1% to $1.0859

  • The pound sterling rose 0.3%, its highest level since March 20.

  • The Japanese yen was little changed at 156.88 per dollar.

  • The Mexican peso rose 0.2% to 16.6590 per dollar.

  • The Brazilian real slipped 0.1% to 5.1717 per dollar.

Cryptocurrencies

  • Bitcoin rose 0.8% to $69,246.10

  • Ether rose 0.4% to its highest level since March 13

Obligations

  • The yield on 10-year Treasury notes fell one basis point to 4.46%

  • The German 10-year yield fell four basis points to 2.55%

  • The UK 10-year yield was little changed at 4.26%

Raw materials

  • West Texas Intermediate crude rose 1.1% to $78.55 a barrel

  • Spot gold rose 0.7%, more than any closing gain since May 17.

This story was produced with the help of Bloomberg Automation.

–With assistance from Matthew Burgess, Catherine Bosley and Michael Msika.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

T
WRITTEN BY

Related posts