(Bloomberg) – Stocks advanced with US futures as favorable news out of China and data out of Europe boosted risk appetite. The dollar fell and Treasuries rose.
Most read by Bloomberg
Contracts on all three major US gauges rose, while the Stoxx Europe 600 index posted broad gains. Hong Kong stocks rallied as China considered further support for property developers. alibaba group holding ltd led premarket gains in US-listed Chinese stocks after Ant Group Co.’s approved fundraising plan sparked bets on the country’s regulatory crackdown on its internet sector.
Tesla Inc. rose poised for a rebound after plummeting 12% on Tuesday as investor Cathie Wood increased her stake in the electric vehicle maker.
After a volatile year in which stocks and bonds tumbled on inflation concerns and higher interest rates, investors are looking for signs of a slowdown that will allow policymakers to slow the pace of rate hikes. A report on Wednesday showed that French inflation slowed unexpectedly, adding to signs of easing inflationary pressures in the euro zone.
“If you don’t see a deep recession, you see a shallow recession, all of that would be the recipe for the markets to see a nice rally that might start in the second half,” said Vasu Menon, executive director, investment strategy at OCBC Bank Wealth Management, in an interview with Bloomberg Television. “There’s a lot of liquidity on the sidelines waiting to come back in and wait for those macro cues.”
Traders are also awaiting the minutes of the Federal Reserve’s last meeting, due later on Wednesday, and the eagerly-watched jobs report later this week. Treasury bonds continued to rise after their strongest start to a year since 2001 on Tuesday.
Elsewhere, oil deepened a slump amid a deteriorating demand outlook.
The Australian dollar rose on reports that China is considering an end to a ban on Australian coal. The yen appreciated after the Bank of Japan announced further unscheduled asset purchases.
The story goes on
Important events this week:
-
Minutes of FOMC meeting, Wednesday
-
US-ISM Manufacturing, JOLTS Vacancies, Wednesday
-
Eurozone PPI, Thursday
-
US ADP Employment Change, Initial Jobless Claims, Thursday
-
China trade, Caixin PMI, Thursday
-
Eurozone Retail Sales, CPI, Consumer Confidence, Friday
-
Germany factory orders, Friday
-
US nonfarm payrolls, factory orders, durable goods, Friday
The main market movements are:
stocks
-
S&P 500 futures were up 0.4% at 4:55 am New York time
-
Nasdaq 100 futures up 0.5%
-
Futures on the Dow Jones Industrial Average rose 0.3%
-
The Stoxx Europe 600 rose 0.9%
-
The MSCI World Index fell 0.1%
currencies
-
The Bloomberg Dollar Spot Index fell 0.7%
-
The euro rose 0.7% to $1.0619
-
The British pound rose 0.8% to $1.2063
-
The Japanese yen rose 0.5% to 130.35 per dollar
cryptocurrencies
-
Bitcoin surged 1% to $16,836.13
-
Ether is up 3.2% to $1,249.39
Bind
-
The 10-year government bond yield fell four basis points to 3.70%
-
The 10-year German government bond yield fell eight basis points to 2.30%
-
The 10-year UK government bond yield fell 7 basis points to 3.59%
raw materials
-
West Texas Intermediate Crude fell 1.8% to $75.58 a barrel
-
Gold futures rose 1.1% to $1,867 an ounce
This story was created with the support of Bloomberg Automation.
–Assisted by Vildana Hajric, Isabelle Lee and Richard Henderson.
Most Read by Bloomberg Businessweek
©2023 Bloomberg LP
Comments are closed.