Stocks, US Futures Steady as Traders Wait for CPI: End of Market
(Bloomberg) – U.S. index futures and European stocks were steady amid forecasts that inflation in the world’s largest economy will hit its lowest this year, the Federal Reserve said. the state will be less hawkish.
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Contracts on the S&P 500 and Nasdaq 100 rose less than 0.1% after the major indexes gained the most Monday in December. The Stoxx 600 gauge was little changed. The dollar weakened for the first time in three days. Treasuries rose, diverted from European bonds fell. Oil rallied on signs of further easing of China’s Covid-19 regulations.
US stocks rallied on Monday as traders felt reassured by economists’ forecasts of a 7.3% rise in the US consumer price index in November. In fact, this would be an 11-month low and the fifth consecutive decline. While that would still leave inflation much higher than the Fed’s 2% target, it could justify a slowdown in the pace of monetary tightening, with a half-point increase expected on Wednesday. Private. However, it also left a low for disappointment and sell-off.
“Today’s US CPI data should give us an idea of how the market valuation for the Fed’s end-of-term interest rate will conflict with the dot chart predictions coming out tomorrow and that, in any case, will thwart any upbeat market sentiment,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note. “Therefore, even if we see a great CPI print and a nice market rally today, it may not extend beyond Wednesday’s Fed decision.”
The European equity benchmark stabilizes from Monday’s losses as traders await the US release but also keep an eye on the European Central Bank’s interest rate decision on Thursday. The continent’s policymakers are expected to follow the Fed with their own half-point hike. Meanwhile, data showed that UK wages are growing at a record pace, maintaining pressure on the Bank of England to keep raising interest rates despite a deteriorating economic outlook.
Treasuries rose with 10-year yields down 1 basis point. The Bloomberg Dollar Spot Index trades below its 200-day moving average, having fallen below it earlier this month. An Asian fair benchmark rose after Hong Kong decided to cancel the three-day Covid monitoring period for incoming travelers.
Crude oil recovered, with West Texas Intermediate futures rising above $74 a barrel. China’s ambassador to the US said the country will continue to ease restrictions and will soon welcome more international visitors.
Investors are also weighing the impact of Japan and the Netherlands agreeing in principle to at least partially join the United States in increasing controls on exports to China of advanced machinery for manufacturing. semiconductor production. Trade in Asian semiconductor stocks in contrast to the news.
This week’s main events:
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US CPI, Tuesday
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FOMC rate decision and Fed Chairman’s press conference, Wednesday
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China medium-term loans, real estate investment, retail, industrial production, unemployment surveyed, Thursday
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ECB interest rate decision and ECB President Lagarde press conference, Thursday
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Rate decision for BOE UK, Mexico, Norway, Philippines, Switzerland, Taiwan, Thursday
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US cross-border investment, business inventories, manufacturing empire, retail sales, initial jobless claims, industrial production, Thursday
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Eurozone S&P Global PMI, CPI, Friday
Some key moves in the market:
share
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Stoxx Europe 600 little changed at 8:27 a.m. London time
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S&P 500 futures were little changed
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Nasdaq 100 futures were little changed
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Futures on the Dow Jones Industrial Average were little changed
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MSCI Asia Pacific Index up 0.2%
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The MSCI Emerging Markets Index was little changed
currency
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Bloomberg Dollar Spot Index was little changed
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The euro rose 0.1% to $1.0549
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The Japanese yen was unchanged at 137.67 per dollar
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The offshore yuan was little changed at 6.9844 per dollar
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British Pound was little changed at $1.2265
electronic money
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Bitcoin is little changed at $17,183.63
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Ether drops 0.7% to $1,266.57
bonds
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Yields on 10-year Treasuries fell 1 basis to 3.60%
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German 10-year yield rose 5 basis points to 1.99%
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UK 10-year bond yield rose 3 basis points to 3.23%
Goods
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Brent crude oil rose 1.8% to 79.42 USD/barrel
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Spot gold rose 0.2 percent to $1,785.46 an ounce
This story was made possible with support from Bloomberg Automation.
–With support from Jason Scott.
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