(Bloomberg) – Asian stocks were mixed while U.S. and European stock futures edged higher on Monday as investors awaited interest rate decisions this week from the U.S., Europe, China and Japan. A dollar strength gauge rose slightly and Treasury yields were slightly higher.
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Japan’s Topix index gained 0.7% while Hong Kong’s benchmark slipped 0.6% and Australian markets were closed for the holidays. Euro Stoxx 50 futures climbed 0.4% and S&P 500 contracts added 0.1% after the underlying index slipped further into bullish territory on Friday.
Concerns about growth in China remain while in the United States, tech stocks continued to climb amid bets that the Federal Reserve is nearing the end of its up cycle.
Positioning in rates markets suggests another Fed hike, with the decision likely to come next month rather than this Wednesday. Bloomberg Economics is among a minority of forecasters who see the People’s Bank of China cutting its medium-term lending facility on Thursday.
Unexpected increases last week by the Bank of Canada and the Reserve Bank of Australia added an additional element of uncertainty to the markets. The European Central Bank is expected to raise its key rate on Thursday and the Bank of Japan is expected to remain faithful on Friday.
While the consensus is for the Fed to take a break this week, there are also fears that its ten hikes in the current cycle have done damage, leading bond managers including Fidelity International to Allianz Global Investors to forecast. an economic downturn.
“The focus next week will be on the U.S. core CPI, then the FOMC, where our economics team expects a ‘hawkish pause’ from the Fed,” analysts at Nomura Holdings Inc wrote. , including Chetan Seth, in a note. With the market mostly pricing upside by July, they don’t see a negative impact for stocks beyond “any initial instinctive negative reaction.”
In the currency markets on Monday, a dollar index rose 0.1%. The offshore yen and yuan slipped about 0.2% against the greenback.
Treasury yields rose two basis points for the two-year maturity and one basis point for the benchmark 10-year.
Oil suffered losses amid continued concerns over the demand outlook as Goldman Sachs Group Inc. again cut its price forecast. Brent futures were trading below $75 a barrel and West Texas Intermediate was below $70. The gold fell.
Key events this week:
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US CPI, Tuesday
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FOMC begins two-day meeting on Tuesday
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Eurozone industrial production, Wednesday
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US IPP, Wednesday
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FOMC Rate Decision Wednesday
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IEA oil market report released on Wednesday
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China’s central bank meeting to decide one-year lending rate on Thursday
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China house prices, retail sales, industrial production, Thursday
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ECB rate decision Thursday
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U.S. Initial Unemployment Insurance Claims, Retail Sales, Empire Manufacturing, Trade Inventories, Industrial Production
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Eurozone CPI, Friday
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BOJ Japan Rate Decision Friday
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American University of Michigan Consumer Sentiment Friday
Some of the major moves in the markets:
Shares
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S&P 500 futures rose 0.1% at 11:41 a.m. Tokyo time. The S&P 500 rose 0.1% on Friday
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Nasdaq 100 futures rose 0.2%. The Nasdaq 100 rose 0.3% on Friday
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Japan’s Topix rose 0.7%
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Hong Kong’s Hang Seng fell 0.6%
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The Shanghai Composite fell 0.5%
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Euro Stoxx 50 futures rose 0.4%
Currencies
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The Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.1% to $1.0734
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The Japanese yen fell 0.2% to 139.61 per dollar
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The offshore yuan fell 0.2% to 7.1578 per dollar
Cryptocurrencies
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Bitcoin fell 1.4% to $25,775.54
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Ether fell 2.3% to $1,729.26
Obligations
Goods
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West Texas Intermediate crude fell 1.2% to $69.36 a barrel
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Spot gold fell 0.3% to $1,955.59 an ounce
This story was produced with assistance from Bloomberg Automation.
–With help from Ishika Mookerjee.
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