Equity futures in Europe climbed alongside stocks in Asia Wednesday in the slipstream of gains on Wall Street as investors awaited the Federal Reserve’s policy meeting.
(Bloomberg) — Equity futures in Europe climbed alongside stocks in Asia Wednesday in the slipstream of gains on Wall Street as investors awaited the Federal Reserve’s policy meeting.
Contracts for the Euro Stoxx 50 benchmark edged higher. A benchmark of Asian shares advanced about 0.4%, with key indexes rising in Hong Kong and Australia, while shares fluctuated in mainland China and Japan.
US futures bucked the trend, with small declines following a series of corporate earnings reports late Tuesday that included a disappointing outlook from Electronic Arts Inc. and the first-ever forecast revenue decline for Snap Inc. The Nasdaq 100 had rallied 1.6% earlier, to cap its best month since July and strongest start to a year since 2001.
Adani Group stocks resumed their selloff after the share sale by the Indian conglomerate’s flagship firm failed to turn sentiment from Hindenburg Research’s fraud allegations. In one bright spot for the group, nearly all dollar bonds issued by Adani companies extended gains into a second day.
The rupee was marginally stronger and the Nifty 50 stock index climbed as the government unveiled its budget Wednesday.
US futures bucked the trend in Asian equities, with small declines following a series of corporate earnings reports late Tuesday that included a disappointing outlook from Electronic Arts Inc. and the first-ever forecast revenue decline for Snap Inc. The Nasdaq 100 had rallied 1.6% earlier, to cap its best month since July and strongest start to a year since 2001.
Gains for US stocks were helped along by wage cost data that undershot forecasts. Separate figures showed the US housing market continued to cool. Another report highlighted consumer confidence unexpectedly falling.
The encouraging signs indicate the Fed’s rate hikes over the past year have begun to curtail inflation. The central bank is set to unveil a 25 basis point rate increase and investors will be keenly parsing Fed Chair Jerome Powell’s comments for signs the tightening cycle may soon pause.
An index of dollar strength traded little changed while Group-of-10 currencies held within tight ranges.
Treasuries were also steady in Asian trading, with the 10-year yield just above 3.5% after a three basis points decline on Tuesday.
“The outcomes for inflation are looking better than they did a few months ago, but the war against inflation is far from won,” Aninda Mitra, Head of Asia Macro and Investment Strategy for BNY Mellon said in an interview with Bloomberg Television. “Wages are still high, the jobs market is still tight.”
Elsewhere in markets, Bitcoin added slightly to its near 40% rally this year, with a test ahead when the Fed decision comes. Crypto, stocks and bonds have jumped in the new year on expectations of a Fed pivot to slower interest-rate hikes and eventual cuts as high inflation cools.
Iron ore held near a seven-month high as major exporter Vale SA announced lower-than-expected fourth-quarter production, while oil edged higher.
Key events this week:
- Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
- US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
- FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
- Earnings Wednesday include: Meta Platforms and Peloton Interactive
- Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
- UK BOE rate decision, Thursday
- US factory orders, initial jobless claims, US durable goods, Thursday
- Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
- Eurozone S&P Global Eurozone Services PMI, PPI, Friday
- US unemployment, nonfarm payrolls, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 0.3% as of 3:23 p.m. Tokyo time. The S&P 500 rose 1.5%
- Nasdaq 100 futures fell 0.4%. The Nasdaq 100 rose 1.6%
- Australia’s S&P/ASX 200 Index rose 0.3%
- Hong Kong’s Hang Seng rose 0.8%
- The Shanghai Composite rose 0.6%
- Euro Stoxx 50 futures rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0873
- The Japanese yen fell 0.1% to 130.25 per dollar
- The offshore yuan was little changed at 6.7532 per dollar
Cryptocurrencies
- Bitcoin rose 0.7% to $23,103.65
- Ether was little changed at $1,578.78
Bonds
- The yield on 10-year Treasuries was little changed at 3.50%
- Australia’s 10-year yield advanced two basis points to 3.57%
Commodities
- West Texas Intermediate crude rose 0.3% to $79.07 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
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