Stocks, US Futures Steady Ahead of Fed Minutes: Markets Wrap Up

(Bloomberg) — European stocks and U.S. equity futures were steady as investors awaited the release of policy minutes from the latest Federal Reserve meeting to gain insight into the path of rate hikes.

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The Stoxx Europe 600 was near a three-month high, as basic resources and energy stocks gained. Credit Suisse Group AG fell after warning of a fourth-quarter loss. Contracts on the S&P 500 edged higher after the benchmark closed at its highest level since mid-September on Tuesday. Nasdaq 100 futures had little change. An index of Asian shares rose.

Attention is focused on the release of minutes later from the Fed meeting on November 1-2. The publication will be studied to see how united policymakers were on a higher than previously signaled peak for interest rates in their fight against inflation as investors gauge how aggressive the Fed will be when which he will meet next month.

“Since the meeting, the market has been reeling in anticipation of what will 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 some of the rate hike risk repricing we saw at the end of this week to be released.”

Dollar measures fell, with the euro and the New Zealand currency the strongest among the greenback’s Group-of-10 peers. New Zealand government bond yields also rose, driven by the country’s central bank raising interest rates by 75 basis points. The yield on 10-year US Treasuries climbed one basis point.

In Asian trade, Hong Kong technology shares fell before consolidating their advances as investors weighed the implications of a report that Ant Group Co. faces a fine of more than $1 billion. from the central bank of China. The news prompted speculation that this could mark a possible end point of the government’s focus on technology and could allow Alibaba Group Holding Ltd. attempts to relist Ant shares.

Bitcoin had 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 more details on a plan to cap Russian crude prices and assessed the outlook for demand in Covid-hit China.

US manufacturing data fell below forecasts, confirming the peak in inflation. San Francisco Fed President Mary Daly has said officials need to be wary of delays in the transmission of policy changes, while her counterpart in Cleveland, Loretta Mester, said she is willing to limit the rate hikes. cushion

“We think the Fed leadership is trying to get off the 75-basis-point-meeting hamster wheel although it is difficult to do so while maintaining control over financial conditions,” Evercore ISI’s Krishna Guha wrote in a note. “We think the Fed is still engaging in a ‘hawkish slowdown.’ And, for us at least, what’s slowing down is what’s important.”

This week’s highlights:

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

  • US MBA mortgage applications, durables, initial jobless claims, University of Michigan outlook, new home sales, Wednesday

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

  • The ECB publishes an account of its October policy meeting on Thursday

  • US stock and bond markets are closed for the Thanksgiving holiday on Thursday

  • US stock and bond markets close early on Friday

Some of the main moves in the markets:

Stock

  • The Stoxx Europe 600 was unchanged as of 8:18 London time

  • Futures on the S&P 500 were little changed

  • Futures on the Nasdaq 100 were little changed

  • Futures on the Dow Jones industrial average were little changed

  • The MSCI Asia Pacific Index rose 0.4%

  • The MSCI Emerging Markets Index rose 0.5%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro rose 0.3% to $1.0336

  • The Japanese yen was little changed at 141.28 per dollar

  • The offshore yuan fell 0.3% to 7.1556 per dollar

  • The British pound was little changed at $1.1883

Cryptocurrency

  • Bitcoin increased 2.4% to $16,509.13

  • Ether rose 2.9% to $1,161.99

Bonds

  • The yield on 10-year Treasuries was little changed at 3.76%

  • Germany’s 10-year yield advanced four basis points to 2.01%

  • Britain’s 10-year yield advanced two basis points to 3.16%

Commodities

  • Brent crude rose 0.9% to $89.14 a barrel

  • Spot gold rose 0.1% to $1,742.56 an ounce

This story was produced with assistance from Bloomberg Automation.

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