US stocks, futures steady ahead of Fed minutes: Markets overview

(Bloomberg) — European stocks and U.S. stock futures were steady as investors awaited the release of minutes from the Federal Reserve’s latest meeting for information on the path of interest rate hikes.

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The Stoxx Europe 600 held near a three-month high as basic resources and energy stocks rose. Credit Suisse Group AG fell after warning of a fourth-quarter loss. S&P 500 contracts rose after the main gauge closed at its highest level since mid-September on Tuesday. Nasdaq 100 futures were little changed.

Shares in Manchester United Plc jumped in U.S. premarket trading after the owners of the historic English soccer club said they were exploring options that could lead to a sale. Asian shares rose. Market trading volumes are expected to be weaker given the US Thanksgiving holiday on Thursday.

A gauge of dollar strength pared losses, with New Zealand’s currency among the best performers against the greenback after the country’s central bank raised interest rates by the most on record. The yield on 10-year U.S. Treasuries fell one basis point.

The release of minutes from the Fed’s Nov. 1-2 meeting — due at 2 p.m. in Washington — will examine how much the united policymakers were above a higher interest rate peak than previously signaled in their fight against inflation. Some investors expect the lower-than-expected inflation data could prompt the Fed to moderate the size of its rate hikes as early as next month’s meeting.

“After the meeting, the market spun in anticipation of what might happen in December and this week’s minutes could help confirm the Fed’s intent,” said economists at Rand Merchant Bank in Johannesburg. “The risk to the markets from the minutes is that they look less hawkish than expected, which could lead to a weakening of some of the rate hike risk we saw at the end of last week.”

European investors reviewed data showing that private sector activity in Germany and France – the eurozone’s two largest economies – shrank in November, painting a bleak picture for a region that may already be in recession.

Meanwhile, a gauge of manufacturing and services activity in the eurozone unexpectedly rose in November, signaling that businesses are seeing preliminary signs that the region’s economic downturn may be easing as record inflation cools and expectations for future output improve.

In Asian trade, shares of Hong Kong technology companies faltered before consolidating gains as investors weighed the implications of a report that Ant Group Co. is facing a fine of over $1 billion from China’s central bank. The news sparked speculation that it could mark a potential end to government restrictions on technology and could allow Alibaba Group Holding Ltd. to resume efforts to list shares of Ant

Bitcoin posted recent gains after rising as much as 4.2% on Tuesday to lift the digital asset from its lowest price since November 2020.

Oil rose as traders awaited further details on a plan to curb Russian crude prices and gauged the outlook for demand in Covid-hit China.

Key events this week:

  • S&P Global PMI: US, Eurozone, UK, Wednesday

  • US MBA Mortgage Applications, Durable Goods, Initial Jobless Claims, University of Michigan Sentiment, New Home Sales, Wednesday

  • Minutes of the Federal Reserve meeting on November 1-2, Wednesday

  • The ECB published a report on its October policy meeting Thursday

  • U.S. stock and bond markets are closed for the Thanksgiving holiday Thursday

  • US stock and bond markets close early on Friday

Some of the major moves in the markets:

Stock up

  • The Stoxx Europe 600 was up 0.2 percent at 9:20 a.m. London time

  • S&P 500 futures were little changed

  • Nasdaq 100 futures were little changed

  • Dow Jones Industrial Average futures were little changed

  • MSCI Asia Pacific rose 0.3%

  • MSCI Emerging Markets rose 0.4%


  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0310

  • The Japanese yen was little changed at 141.37 per dollar

  • The offshore yuan fell 0.3 percent to 7.1612 per dollar

  • The British pound was unchanged at $1.1886


  • Bitcoin rose 2.6% to $16,547.03

  • Ether rose 3.2% to $1,165.89


  • The yield on the 10-year note fell one basis point to 3.75%

  • Germany’s 10-year bond yield was little changed at 1.99%

  • Britain’s 10-year bond yield fell four basis points to 3.10%


  • Brent crude rose 0.9% to $89.17 a barrel

  • Spot gold fell 0.2% to $1,737.05 an ounce

This story was created using Bloomberg Automation.

–With help from Richard Henderson.

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