European stocks saw an uptick as investors eagerly awaited the latest US economic data that could influence the upcoming Federal Reserve interest-rate cut decision. Retailers and banking stocks led the gains in Europe’s Stoxx 600, while other markets remained relatively calm in anticipation of the Fed’s announcement. US stock futures held steady.
On the eve of the first rate cut by the Fed in five years, all eyes turned to US retail figures set to be released later. The market is divided on whether the Fed will opt for a 25 or 50 basis point cut.
The dollar stabilized after a recent decline, and Treasury yields inched lower as market participants awaited the outcome of the Fed meeting.
In Asia, Japan’s Nikkei 225 declined, putting pressure on the regional equity index amid ongoing concerns about China’s economic slowdown. Trading in China, Taiwan, and South Korea was closed for public holidays.
The yen maintained its strength after reaching its highest level against the dollar since July 2023, causing Japanese equities to come under pressure. The upcoming Bank of Japan meeting could further impact sentiment towards Japanese shares.
Gold prices remained near record levels as traders anticipated a weaker dollar and lower Treasury yields post the Fed’s decision. Oil prices edged higher.
Key events to watch this week include Germany ZEW data, US retail sales and industrial production figures, Eurozone CPI data, the Fed and UK rate decisions, as well as other economic indicators.
Here are some of the recent market moves:
Stocks:
– Stoxx Europe 600 rose 0.6%
– S&P 500 futures were stable
– Nasdaq 100 futures increased by 0.2%
– MSCI Asia Pacific Index was unchanged
– MSCI Emerging Markets Index rose by 0.4%
Currencies:
– Bloomberg Dollar Spot Index remained stable
– Euro fell slightly to $1.1117
– Japanese yen rose to 140.42 per dollar
– British pound fell to $1.3201
Cryptocurrencies:
– Bitcoin rose to $58,579.36
– Ether rose to $2,301.45
Bonds:
– 10-year Treasury yield declined to 3.61%
– Germany’s 10-year yield dropped to 2.09%
– Britain’s 10-year yield fell to 3.73%
Commodities:
– This article was created with the help of Bloomberg Automation.
– Assistance provided by Jason Scott, Masaki Kondo, and Jake Lloyd-Smith.
(Source: Bloomberg Businessweek, ©2024 Bloomberg L.P.)