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US futures, Asian stocks fall ahead of PCE data: End of market


(Bloomberg) — U.S. stock contracts fell slightly and Asian stocks fell as investors awaited key data for clues about the Federal Reserve’s interest rate hike campaign.

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US stock futures slide as investors look to Friday’s release of a personal consumption spending index – the Fed’s preferred price gauge – expected to show an acceleration against a backdrop of strong income and spending growth.

Euro Stoxx 50 futures pointed to gains after shares were little changed at Thursday’s close.

In Asia, stock indexes pushed lower and posted a fourth straight week of losses, their longest losing streak since September. Hong Kong-listed technology stocks led the post-results decline. from e-commerce giant Alibaba Group Holding Ltd., with analysts cautious about the company’s revenue outlook.

Japanese markets are in the spotlight, with Friday data showing inflation rising as the government’s candidate to become the next central bank governor faces his first barbecue. in parliament.

The yen fluctuated against the greenback after Kazuo Ueda told lawmakers he had seen inflation peak. He said the current policy easing was appropriate but added that the central bank could move towards normalization if steady 2% inflation emerges.

“Policy normalization is underway at the BOJ, but it will be a very gradual and cautious process, right now,” said Alvin Tan, head of Asia forex strategy at RBC Capital Markets in Singapore. even with a new governor at the top.” As a result, the yen is likely to trade in a range-bound for the time being, boosted more in the near term by the uptrend in the US dollar and US bond yields, he said.

The dollar was little changed against most major currencies and the benchmark 10-year Treasury note looks set to continue rising on Tuesday.

According to Anna Wong of Bloomberg Economics, the acceleration shown by the PCE Index will add to a string of unfavorable metrics, boosting the possibility of the central bank keeping interest rates at 5.25% for some time. Current benchmarks range from 4.5% to 4.75%.

Altaf Kassam, head of EMEA investment research and strategy at State Street Global Advisors, said investors should still expect volatility in the markets as PCE data emerges because every point data will be scrutinized. “But we think the trend is generally favorable. He spoke on Bloomberg Television.

Adani Community Outreach

Adani Group will hold a fixed-income investor showcase in Asia next week. The Indian conglomerate is stepping up its outreach to investors after its bonds and stocks tumbled following a key report from short seller Hindenburg Research released last month.

Meanwhile, German chemical company BASF SE announced its decision to end its share buyback program ahead of schedule due to profound changes in the global economy.

In commodities, oil extended Thursday’s gains, as it broke its longest losing streak since December amid strengthening commodity currencies and signs of a willingness to take risks. Gold marks higher.

Elsewhere, Bitcoin is on track for a second monthly rally, disrupting equities and other risky assets that have slipped amid renewed concerns about rising interest rates. The crypto market rally only recovered a fraction of the ground lost last year, when the price drop and the collapse of the FTX exchange caused investors to retreat.

This week’s main events:

  • US PCE deflation, personal spending, new home sales, University of Michigan consumer sentiment, Friday

  • Russia’s invasion of Ukraine hits one-year mark, Friday

Some key moves in the market:

share

  • S&P 500 futures were little changed at 6:31 a.m. London time. S&P 500 up 0.5%

  • Nasdaq 100 futures fell 0.2%. Nasdaq 100 up 0.9%

  • Euro Stoxx 50 Futures Up 0.4%

  • Japan’s Topix index rose 0.7%

  • South Korea’s Kospi fell 0.6 percent

  • Hong Kong’s Hang Seng Index drops 1.2%

  • China’s Shanghai Composite Index fell 0.5%

  • Australia’s S&P/ASX 200 Index is up 0.3%

currency

  • Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0601

  • The Japanese yen was little changed at 134.62 per dollar

  • The offshore yuan fell 0.3% to 6.9382 per dollar

  • British Pound was little changed at $1.2024

electronic money

  • Bitcoin is little changed at $23,864.07

  • Ether rose 0.2% to $1,649.05

bonds

Goods

  • West Texas Intermediate crude rose 0.8% to $75.99/barrel

  • Spot gold rose 0.2 percent to $1,825.46 an ounce

This story was made possible with the help of Bloomberg Automation.

–With assistance from Rob Verdonck, Richard Henderson and Matthew Burgess.

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