US Futures Are Steady as Traders Await Fed Minutes: Markets Wrap

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(Bloomberg) — US stock futures and European stocks were stable, as investors awaited the release of policy minutes from the last Federal Reserve meeting for possible signs that the pace of interest rate hikes may slow.

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Contracts on the S&P 500 rallied after the underlying gauge closed Tuesday at its highest level since mid-September, while those on the Nasdaq 100 were little changed. The Stoxx Europe 600 traded at a new three-month high as mining and energy stocks rose. Shares of Credit Suisse Group AG fell below record lows after the bank warned of a fourth-quarter loss.

Shares of Manchester United Plc rose in US premarket trading after owners of the historic English football club said they were exploring options that could lead to a sale. Tesla Inc. won after Citigroup Inc. the electric vehicle maker had upgraded from sales to neutral. Trading volumes in the market are expected to be lower given the US Thanksgiving holiday on Thursday.

An erased gauge of dollar strength is falling. Ten-year Treasury yields in the US changed little. Oil fell as the EU discussed imposing a price cap on Russian oil between $65 and $70 a barrel.

The release of the minutes of the Fed’s meeting on November 1 and 2, scheduled for 2 p.m. in Washington, will be studied to see how united policymakers overcame a higher-than-expected spike in interest rates in their inflation battles. Some investors expect lower-than-estimated inflation rates could prompt the Fed to moderate the size of its rate hikes as early as next month’s meeting.

“Investors may be looking for evidence that they acted prematurely, or that there is actually more support for such a slowdown in tightening and less support for higher closing rates than they previously thought,” said Craig Erlam, senior market analyst at Oanda. Europe BV

European investors processed data showing that private sector activity in Germany and France, the eurozone’s two main economies, contracted in November, painting a gloomy picture for a region that may already be in recession. A separate study found that the UK economy is in recession and the downturn is expected to worsen in 2023.

Meanwhile, a gauge measuring industrial and services activity in the eurozone rose unexpectedly in November, indicating that companies are seeing tentative signs that the region’s economic slump could ease as record inflation cools and expectations for future output improve.

Bitcoin held onto recent gains after rising as much as 4.2% Tuesday to lift the digital asset from its lowest price since November 2020.

Main events this week:

  • S&P Global PMIs: US, Euro Area, UK, Wednesday

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

  • Minutes from the Federal Reserve meeting on November 1 and 2, Wednesday

  • The ECB will publish the report of its policy meeting in October on Thursday

  • The US stock and bond markets are closed for Thanksgiving, Thursday

  • US stock and bond markets close early Friday

Some of the major moves in markets:

Shares

  • Futures on the S&P 500 are up 0.1% as of 6:06 a.m. New York time

  • Futures on the Nasdaq 100 were little changed

  • Futures on the Dow Jones Industrial Average had changed little

  • The Stoxx Europe 600 rose 0.1%

  • The MSCI World index rose 0.1%

Currencies

  • The Bloomberg Dollar Spot Index had changed little

  • The euro was little changed at $1.0313

  • The British pound rose 0.3% to $1.1926

  • The Japanese yen changed little at 141.37 per dollar

Cryptocurrencies

  • Bitcoin rose 2.8% to $16,584.75

  • Ether rose 3.7% to $1,171.99

Bonds

  • The yield on 10-year government bonds was little changed at 3.75%

  • The German 10-year yield was little changed at 1.98%

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

Raw materials

  • West Texas Intermediate crude fell 1.8% to $79.50 a barrel

  • Gold futures fell 0.2% to $1,752.10 an ounce

This story was created with the help of Bloomberg Automation.

–With help from Richard Henderson.

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©2022 Bloomberg LP

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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