Equities, US Futures Steady Ahead of Fed Minutes: Markets Close

(Bloomberg) – European and US stock futures held steady as investors awaited the release of the policy minutes of the latest Federal Reserve meeting for insights into the path of rate hikes.

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The Stoxx Europe 600 has held 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 underlying indicator closed at its highest level since mid-September on Tuesday. The Nasdaq 100 futures were little changed.

Shares of Manchester United Plc entered pre-market trading in the United States after the owners of the historic English soccer club said they were exploring options that could lead to a sale. An index of Asian stocks rose. Market trading volumes should be lighter given the US Thanksgiving holiday on Thursday.

A gauge of dollar strength fell, with the New Zealand currency among the best performers against the greenback after the country’s central bank raised rates to the highest on record. Yields on 10-year US Treasuries fell by a basis point.

The publication of the minutes of Nov. The 1-2 meeting – scheduled for 2 p.m. in Washington – will study how united policymakers overcame a higher peak for interest rates than previously reported in their fight against inflation. Some investors are predicting that lower-than-expected inflation data could prompt the Fed to moderate the size of its rate hikes as early as next month’s meeting.

“Since the meeting, the market has swung in its anticipation of what might happen in December, and this week’s minutes could help confirm the Fed’s intent,” said economists at Johannesburg’s Rand Merchant Bank. “The risk to markets from the minutes is that they look less hawkish than expected, which could lead to some reduction in the repricing of rate hike risk we saw at the end of last week.”

European investors digested data showing private sector activity in Germany and France – the euro area’s two largest economies – contracted in November, painting a bleak picture for a region that may already be in recession.

Meanwhile, an indicator measuring euro area activity in manufacturing and services rose unexpectedly in November, signaling that businesses see tentative signs that the region’s economic slump may ease as record inflation cools. and expectations for future production improve.

In Asian trading, Hong Kong tech shares fluctuated before consolidating their advance as investors weighed the implications of a report that Ant Group Co. faces a fine of more than $1 billion from China’s central bank. The news has triggered speculation that this could mark a potential end point in the government’s crackdown on the tech and could allow Alibaba Group Holding Ltd. to reignite efforts to list Ant stock.

Bitcoin recently held gains after climbing as much as 4.2% on Tuesday to lift the digital asset off its lowest price since November 2020.

Oil moved higher as traders awaited further details on a plan to cap Russian crude prices and assess the demand outlook in Covid-hit China.

Key events this week:

  • S&P Global PMI: US, euro area, UK, Wednesday

  • US MBA mortgage applications, durable goods, initial jobless claims, University of Michigan sentiment, new home sales, Wednesday

  • Federal Reserve Minutes Nov. 1-2 meeting, Wednesday

  • The ECB publishes the minutes of its October policy meeting on Thursday

  • The 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 major moves in the markets:

Actions

  • The Stoxx Europe 600 was up 0.2% as of 9:20am London time

  • S&P 500 futures were little changed

  • Nasdaq 100 futures were little changed

  • Dow Jones Industrial Average futures were little changed

  • MSCI Asia Pacific index rose 0.3%

  • The MSCI Emerging Markets Index is up 0.4%

Currencies

  • The Bloomberg Dollar Spot Index has changed slightly

  • The euro was little changed at $1.0310

  • The Japanese yen was little changed at 141.37 to the dollar

  • The offshore yuan fell 0.3% to 7.1612 to the dollar

  • The British pound was unchanged at $1.1886

cryptocurrencies

  • Bitcoin climbed 2.6% to $16,547.03

  • Ether rose 3.2% to $1,165.89

obligations

  • The 10-year Treasury yield fell by a basis point to 3.75%

  • Germany’s 10-year yield has changed slightly to 1.99%

  • UK 10-year yield fell four basis points to 3.10%

goods

  • Brent crude rose 0.9% to $89.17 a barrel

  • Spot gold fell 0.2% to $1,737.05 an ounce

This story was produced with assistance from Bloomberg Automation.

–With assistance from Richard Henderson.

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