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Tag: US stock futures

  • European Stocks Futures Gain Before US Jobs Data: Markets Wrap

    European Stocks Futures Gain Before US Jobs Data: Markets Wrap

    (Bloomberg) — European and US stock futures gained in line with Asian equities ahead of US jobs data that will identify the path ahead for interest rates. An oil price rally eased after Middle East tensions led to the biggest one-day jump in almost a year.

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    Euro Stoxx 50 futures rose 0.2%, and contracts on the S&P 500 advanced 0.1%. Equities in Japan and South Korea rose while markets in mainland China were shut for a holiday. A gauge of Chinese shares in Hong Kong advanced as traders assessed its recent rally’s sustainability and await details of fiscal stimulus and holiday spending.

    An index of dollar declined marginally, but is still poised for the biggest weekly gain in nearly six months as traders pared back expectations for aggressive US rate cuts. Treasuries were flat after selling off on Thursday, increasing yields to levels not seen since September.

    West Texas Intermediate and Brent crude eased slightly after each rose more than 5% to a one-month high on Thursday. Earlier gains came after puzzling comments from President Joe Biden, who told reporters the US was discussing whether to support potential Israeli strikes against Iranian oil facilities.

    Investors are concerned that, should Israel strike critical Iranian assets, the Islamic Republic will lash out and escalate the conflict, dragging in more countries and potentially disrupting global energy shipments. Israel said it bombed more than a dozen Hezbollah targets in Beirut on Thursday.

    “The market fear is that there could be supply disruptions coming out of Iran,” said Tai Hui, chief Asia market strategist for JPMorgan Asset Management, on Bloomberg Television. “Demand for oil should remain healthy, but at the same time the risk to the supply side is very much there.”

    The initial buying frenzy in Chinese stocks after Beijing’s stimulus is waning as traders take profit and await policy details and holiday spending data for further confidence. Invesco Ltd.’s chief investment officer for Hong Kong and China, Raymond Ma, who predicted double-digit returns in Chinese equities this year, said there are signs the surge has gone too far for some stocks. Still, strategists at HSBC Holdings Plc and BlackRock Inc. are among Wall Street heavyweights turning bullish on the once beaten-down market.

    The yen strengthened 0.6% against the dollar, paring some of its recent losses from earlier this week after Japanese Prime Minister Shigeru Ishiba had said the nation isn’t ready for another interest-rate increase.

    Amid all the geopolitical uncertainty, investors are looking for further signals on the health of the US economy, with the monthly payrolls report due on Friday. The unemployment rate is forecast to hold steady at 4.2% in September while payrolls are expected to rise by 150,000.

    “If the unemployment rate ticks up, I wouldn’t be surprised that markets would shift back toward expecting 50 basis points and then it is a question of how the Fed may react,” Kallum Pickering, chief economist at Peel Hunt, said on Bloomberg Television.

    Other economic signs showed robustness in the US economy. The Institute for Supply Management’s index of services posted its best reading since February 2023, ahead of Wall Street estimates. Applications for US unemployment benefits rose slightly last week to a level that is consistent with a limited number of layoffs. Continuing claims, a proxy for the number of people receiving benefits, were little changed from the previous week.

    “The US dollar could stay supported on safe haven demand amid Middle East risks, and more so if US payrolls surprise on the upside,” Wei Liang Chang, a foreign-exchange and credit strategist at DBS Bank Ltd., wrote in a research note. “The yen may be a beneficiary too, as geopolitical risks restrain appetite for carry trades”

    Key events this week:

    Some of the main moves in markets:

    Stocks

    • S&P 500 futures were little changed as of 6:34 a.m. London time

    • Nikkei 225 futures (OSE) were little changed

    • Japan’s Topix rose 0.3%

    • Australia’s S&P/ASX 200 fell 0.7%

    • Hong Kong’s Hang Seng rose 2.2%

    • Euro Stoxx 50 futures rose 0.2%

    • Nasdaq 100 futures rose 0.1%

    Currencies

    • The Bloomberg Dollar Spot Index was little changed

    • The euro was little changed at $1.1030

    • The Japanese yen rose 0.6% to 146.11 per dollar

    • The offshore yuan fell 0.2% to 7.0571 per dollar

    • The Australian dollar was little changed at $0.6846

    • The British pound was little changed at $1.3134

    Cryptocurrencies

    • Bitcoin rose 0.6% to $61,156.99

    • Ether rose 1.5% to $2,376.85

    Bonds

    Commodities

    • West Texas Intermediate crude fell 0.1% to $73.62 a barrel

    • Spot gold rose 0.4% to $2,666.99 an ounce

    This story was produced with the assistance of Bloomberg Automation.

    Most Read from Bloomberg Businessweek

    ©2024 Bloomberg L.P.

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  • Stock market today: US futures trade mixed with inflation data on deck

    Stock market today: US futures trade mixed with inflation data on deck

    US stock futures were mixed on Friday as investors braced for an inflation reading that could set the tone for the end of a bumpy data-driven week.

    S&P 500 (^GSPC) futures added 0.2% in the wake of another record closing high, but Dow Jones Industrial Average (^DJI) futures hovered below the flat line. Contracts on the tech-heavy Nasdaq 100 (^NDX) outperformed, rising almost 0.6%.

    The market has been on a ride this week as a series of mixed data prompted investors to keep reassessing their view of the US economy, and in turn the timing of interest rate cuts. The Dow sank 500 points just a day after notching an all-time high as a surprisingly hot consumer inflation report spurred a rout.

    Stocks have made up their deep losses after a steep decline in retail sales, putting weekly wins within reach for the Dow and the S&P 500. A Friday update on another key inflation gauge, the producer price index, will be closely watched given investors are on the alert for data that could sway Federal Reserve policy thinking.

    Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

    In earnings-related moves, Coinbase (COIN) shares surged over 14% in premarket trading after the crypto exchange posted its first quarterly profit in two years. Applied Materials (AMAT) stock also jumped after the machinery maker’s forecast signaled a chip sector rebound.

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  • Stock market news today: US futures muted in countdown to inflation data

    Stock market news today: US futures muted in countdown to inflation data

    US stock futures traded cautiously mixed on Wednesday, with tech stocks reaching for gains as investors waited for fresh inflation data and absorbed a dramatic turn in events in spot bitcoin ETFs.

    Dow Jones Industrial Average (^DJI) futures were down 0.1%, while benchmark S&P 500 (^GSPC) futures hovered just above the flatline. Nasdaq 100 (^NDX) futures rose about 0.2%, after tech stocks eked out the sole win among the major indexes the previous day.

    Stock investors are likely treading carefully ahead of Thursday’s US consumer inflation reading for December, watched for signs of further cooling that could prompt the Federal Reserve to pivot on policy. Recent days have seen worries rise that the market is pricing in too many interest-rate cuts in 2024, as once-rampant confidence for an early cut fades.

    Meanwhile, bitcoin (BTC-USD) steadied to trade above $45,000 after a tweet from the SEC’s X account sparked swings in the leading cryptocurrency. The regulator blamed a hack for the false post announcing it had approved spot bitcoin ETFs. The decision on whether the likes of BlackRock and Ark Invest can start offering the funds is due this week, with some expecting it Wednesday.

    Also in focus is the coming start of fourth-quarter earnings cycle, led Friday by Wall Street banking heavyweights such as JPMorgan Chase (JPM). The season will be critical for stocks, after their rough start to 2024.

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  • China Woes Cast Markets Shadow as New Year Starts: Markets Wrap

    China Woes Cast Markets Shadow as New Year Starts: Markets Wrap

    (Bloomberg) — Chinese shares dragged down Asian equities on the first trading day of the year following weaker-than-expected factory data and a speech from President Xi Jinping that flagged the headwinds facing the economy. Crude oil rose.

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    Hong Kong’s benchmark share gauge slid as much as 1.7%, while its peers in the mainland and Taiwan also dropped. The losses drove a regional equity benchmark toward its first decline in seven days.

    Chinese factory activity shrank in December to the lowest level in six months, data published Sunday showed, while a private gauge of manufacturing released Tuesday showed a slight gain. Sluggish activity in the world’s second-largest economy also contributed to a slump in factories across Asia.

    President Xi in his annual new year address televised Sunday pledged to strengthen economic momentum and job creation, while conceding some “enterprises had a tough time” and “people had difficulty finding jobs and meeting basic needs.”

    China’s economy may face another tough year in 2024, said Mark Matthews, head of Asia research at Julius Baer. “President Xi has made it very clear that on the economic front, his priority is bringing down the size of the property sector and its importance in the economy,” he said on Bloomberg Television. “That process is painful.”

    Crude Gains

    Oil gained after Iran dispatched a warship to the Red Sea in response to the destruction of three Houthi boats by the US Navy over the weekend, a move that risks ratcheting up tensions and complicating Washington’s goal of securing a waterway that’s vital to global trade.

    Sentiment in Asia was also dented after people familiar said ASML Holding NV, which makes semiconductor manufacturing equipment, canceled shipments of some of its machines to China at the request of US President Joe Biden’s administration.

    US stock futures were little changed. The yen weakened against most of its Group-of-10 peers in thin trading as investors monitored conditions after an earthquake in Japan on Monday. US 10-year note futures dropped, while cash Treasuries are shut in Asia for a holiday in Japan. Australian bonds slipped.

    Bitcoin climbed above $45,000 for the first time in nearly two years as anticipation of an approval of an exchange-traded fund investing directly in the biggest token intensified.

    Rising Risks

    Signs of exhaustion have emerged after a more than $8 trillion surge in the S&P 500 last year. Traders have looked past Federal Reserve uncertainty, recession angst and geopolitical risks. And many who came into 2023 dreading all that have ended up scrambling to chase the rally.

    “With an especially rare S&P nine-week winning streak already in the books, the index into resistance near the 4,800 level, and daily and weekly overbought readings, too, these factors combine to say we should expect some type of a consolidation, correction, or pullback – something,” John Roque, technical analyst at 22V Research, wrote in a note.

    Meanwhile, despite the persisting weakness in China, some investors consider a slump of almost 60% is a signal to buy Chinese stocks. Almost a third of 417 respondents to Bloomberg’s latest Markets Live Pulse survey say they will increase their China investments over the next 12 months. That compares with just 19% in a similar August survey and is higher than the 25% who planned to boost exposure in March.

    Key events this week:

    • Eurozone S&P Global Eurozone Manufacturing PMI, Tuesday

    • UK S&P Global UK Manufacturing PMI, Tuesday

    • Germany unemployment, Wednesday

    • US FOMC minutes, ISM Manufacturing, job openings, light vehicle sales, Wednesday

    • Richmond Fed President Tom Barkin — an FOMC voter in 2024 — speaks, Wednesday

    • China Caixin services PMI, Thursday

    • Eurozone S&P Global Eurozone Services PMI, Thursday

    • US initial jobless claims, ADP employment, Thursday

    • Eurozone CPI, PPI, Friday

    • US nonfarm payrolls/unemployment, factory orders, ISM services index, Friday

    • Richmond Fed President Tom Barkin — an FOMC voter in 2024 — speaks, Friday

    Some of the main moves in markets:

    Stocks

    • S&P 500 futures were little changed as of 2:14 p.m. Tokyo time. The S&P 500 fell 0.3% on Friday

    • Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.4%

    • Hong Kong’s Hang Seng Index fell 1.4%

    • China’s Shanghai Composite Index fell 0.1%

    • Australia’s S&P/ASX 200 Index rose 0.5%

    Currencies

    • The Bloomberg Dollar Spot Index rose 0.1%

    • The euro fell 0.2% to $1.1025

    • The Japanese yen fell 0.4% to 141.46 per dollar

    • The offshore yuan was little changed at 7.1290 per dollar

    • The Australian dollar rose 0.2% to $0.6828

    Cryptocurrencies

    • Bitcoin rose 4% to $45,353.99

    • Ether rose 2.2% to $2,390.83

    Bonds

    Commodities

    • West Texas Intermediate crude rose 1.7% to $72.85 a barrel

    • Spot gold rose 0.4% to $2,071.68 an ounce

    This story was produced with the assistance of Bloomberg Automation.

    –With assistance from Joanna Ossinger.

    Most Read from Bloomberg Businessweek

    ©2024 Bloomberg L.P.

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  • Stock market news today: US futures climb amid revived hopes for Fed rate cut

    Stock market news today: US futures climb amid revived hopes for Fed rate cut

    US stock futures climbed on Wednesday after a top Federal Reserve official hinted the central bank is done with interest rate hikes, opening the door to a possible rate cut.

    Dow Jones Industrial Average (^DJI) futures rose 0.3%, while benchmark S&P 500 (^GSPC) futures moved up roughly 0.4%. The tech-heavy Nasdaq 100 (^NDX) was up about 0.5% after the three stock gauges closed higher Tuesday to resume their November rally.

    Hopes for a policy pivot grew after Fed Governor Christopher Waller said there was “no reason” to insist rates stay “really high” if inflation continues to cool consistently.

    While Fed Governor Michelle Bowman differed, other officials echoed Waller’s dovish comments, with Chicago Fed President Austan Goolsbee voicing concerns about keeping rates “too high for too long.”

    Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

    Influential investor Bill Ackman is among those now betting the Fed will start cutting rates earlier than expected, saying the move could come as soon as the first quarter.

    Bonds extended gains fueled by dovish comments, with the 10-year Treasury yield (^TNX) — which moves inversely to prices — dropping about 6 basis points to around 4.28%, its lowest since September.

    A fresh reading on US third-quarter GDP due later Wednesday should provide more input for debate over the Fed’s next rate move. Thursday’s PCE report on consumer inflation — the Fed’s preferred gauge of price pressures — is also likely to be crucial.

    In individual stocks, General Motors (GM) shares jumped 8% in premarket trading after the auto giant said it will buy back $10 billion in shares and raise its dividend by one-third.

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