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(Bloomberg) – U.S. stock futures pointed to a softer approach on Wall Street as traders braced for a slew of economic data that will help determine the direction of monetary policy.
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Contracts on the tech-heavy Nasdaq 100 fell 0.7%. Nvidia shares, which have led the rise in semiconductor makers amid the frenzy over artificial intelligence, fell 2.1% in premarket trading. S&P 500 futures fell 0.5%. In Europe, the Stoxx 600 index edged lower as investors digested the latest gains. ASM International NV fell after the chip equipment maker’s disappointing earnings forecast.
All eyes are still on US GDP and inflation, the parade of central bank speakers, and Eurozone price data. Investors are grappling with lower expectations about how much the U.S. Federal Reserve and European Central Bank will cut interest rates.
“Concerns remain that visibly resilient economic activity could lead to higher inflation or a slower decline in inflation,” said Senior Market Analyst at Capital.com. , Kyle Rodda said, “U.S. growth is on very good track, especially given the stage in the rate hike cycle,” which is probably why expected rate cuts were withdrawn so quickly. Ta.
Markets are moving to price in only 75 basis points of US easing through the end of the year, consistent with the most likely outcome given by Fed policymakers in December. U.S. Treasury yields fell on Wednesday and dollar benchmarks strengthened.
Elsewhere, the New Zealand dollar weakened by 1%, along with government bond yields, after the Reserve Bank of New Zealand issued less hawkish comments on inflation, citing declines in most measures of price expectations. % fell. The central bank kept interest rates unchanged, as expected by economists.
Hong Kong’s stock benchmark fell more than 1% after the city’s budget report failed to impress investors. Chinese stocks fell after recent gains hit resistance levels, with traders looking for momentum from this week’s manufacturing report and a key political conference in Beijing next week.
Meanwhile, the Nigerian naira fell to new lows on Tuesday after a much larger-than-expected 400 basis points interest rate hike by the central bank failed to support the currency. Naira is being depleted due to local dollar shortage and unpaid dollar demand.
Cryptocurrency-related stocks rose as Bitcoin rose for the fifth day in a row, marking the biggest monthly increase since October 2021. The launch of a spot Bitcoin ETF in the United States in early January overcame the Fed’s concerns and attracted a frenzy of buying. Rates will not be cut as quickly as expected. On Wednesday, Bitcoin rose 39% in the month to more than $59,000.
Crude oil fell after a second day of gains on signs of rising U.S. inventories and hopes that OPEC+ will extend supply cuts. Iron ore fell again as investors remained undecided on the strength of China’s steel demand ahead of China’s usual peak construction season.
This week’s main events:
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Eurozone economic confidence, consumer confidence, Wednesday
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US wholesale inventories, GDP, Wednesday
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Fed’s Rafael Bostic, Susan Collins and John Williams speak on Wednesday
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G20 finance ministers and central bank chiefs will meet in Sao Paulo from Wednesday to Thursday
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German CPI, unemployment rate, Thursday
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US Consumer Income, PCE Deflator, New Unemployment Insurance Claims, Thursday
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Fed’s Austan Goolsby, Raphael Bostic and Loretta Mester speak Thursday
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China official PMI, Caixin manufacturing PMI, Friday
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Eurozone S&P World Manufacturing PMI, CPI, Unemployment Rate, Friday
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BOE Chief Economist Hugh Pill speaks on Friday
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US Construction Spending, ISM Manufacturing, University of Michigan Consumer Sentiment, Friday
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Fed’s Rafael Bostic and Mary Daly speak on Friday
The main movements in the market are:
stock
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As of 9:47 a.m. London time, the Stoxx European 600 was down 0.2%.
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S&P 500 futures fell 0.5%
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Nasdaq 100 futures fell 0.7%
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Dow Jones Industrial Average futures fell 0.4%.
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MSCI Asia Pacific Index falls 0.7%
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MSCI Emerging Markets Index falls 0.8%
currency
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Bloomberg Dollar Spot Index rose 0.3%
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The euro fell 0.4% to $1.0800.
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The Japanese yen fell 0.1% to 150.71 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2195 yuan to the dollar.
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The British pound fell 0.5% to $1.2626.
cryptocurrency
bond
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The 10-year Treasury yield fell 2 basis points to 4.29%.
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Germany’s 10-year bond yield fell 2 basis points to 2.44%.
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UK 10-year bond yields fell 2 basis points to 4.17%.
merchandise
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Brent crude oil fell 0.9% to $82.88 per barrel.
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Spot gold fell 0.2% to $2,025.93 an ounce.
This article was produced in partnership with Bloomberg Automation.
—With assistance from Rob Verdonck and Winnie Hsu.
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©2024 Bloomberg LP
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