Markets Wrap: Stocks Show Resilience as Doubts Over Fed Rate-Cut Emerge

(Bloomberg) — Stocks Retreat and Dollar Rises as Fed Official Dampens Rate Cut Hopes

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Europe’s Stoxx 600 equity index opens flat, US equity futures slip 0.2% as central banks signal resistance to rate cuts. Financial shares gain, led by UBS Group AG. Dollar and US Treasury yields rise for second day following comments by Minneapolis Fed President Neel Kashkari. Traders await speeches from other Fed officials to reassess rate cut expectations. Tom O’Hara of Janus Henderson Investors cites high oil prices and potential inflation risks from China as factors that could disrupt central bank plans. Australia resumes policy tightening, raises inflation forecast, indicating further interest rate hikes. Emerging market stocks and currencies decline alongside a stronger dollar and weak Chinese exports. Oil prices fall despite supply cuts by Saudi Arabia and Russia.

Story continues

Economic growth concerns weigh on oil prices, overshadowing supply cuts by Saudi Arabia and Russia.

Key events this week:

• China forex reserves, Tuesday

• Eurozone PPI, Tuesday

• US trade, Tuesday

• UBS earnings, Tuesday

• Kansas City Fed President Jeff Schmid and his Dallas counterpart Lorie Logan speak, Tuesday

• Eurozone retail sales, Wednesday

• Germany CPI, Wednesday

• BOE Governor Andrew Bailey speaks, Wednesday

• US wholesale inventories, Wednesday

• New York Fed President John Williams speaks, Wednesday

• Bank of Japan issues October summary of opinions, Thursday

• BOE chief economist Huw Pill speaks on the economy, Thursday

• US initial jobless claims, Thursday

• Fed Chair Jerome Powell participates in panel on monetary policy challenges at the IMF’s annual research conference in Washington, Thursday

• Atlanta Fed President Raphael Bostic and his Richmond counterpart Tom Barkin speak, Thursday

• UK industrial production, GDP, Friday

• ECB President Christine Lagarde participates in fireside chat, Friday

• US University of Michigan consumer sentiment, Friday

• Dallas Fed President Lorie Logan and her Atlanta counterpart Raphael Bostic speak, Friday

Main Moves in Markets:

Stocks

• Stoxx Europe 600 is little changed as of 8:16 a.m. London time

• S&P 500 futures fall 0.2%

• Nasdaq 100 futures fall 0.2%

• Futures on Dow Jones Industrial Average fall 0.3%

• MSCI Asia Pacific Index falls 1.4%

• MSCI Emerging Markets Index falls 0.9%

Currencies

• Bloomberg Dollar Spot Index rises 0.3%

• Euro falls 0.2% to $1.0696

• Japanese yen falls 0.3% to 150.48 per dollar

• Offshore yuan falls 0.1% to 7.2924 per dollar

• British pound falls 0.2% to $1.2316

Cryptocurrencies

• Bitcoin falls 0.2% to $34,968.64

• Ether is little changed at $1,893.95

Bonds

• Yield on 10-year Treasuries is little changed at 4.64%

• Germany’s 10-year yield is little changed at 2.74%

• Britain’s 10-year yield declines three basis points to 4.35%

Commodities

• Brent crude falls 1.4% to $83.99 a barrel

• Spot gold falls 0.5% to $1,968.03 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Chiranjivi Chakraborty.

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