(Bloomberg) — Global equity investors parsed a mixed message Thursday as Chinese shares looked set for further recovery while weak tech earnings clouded the outlook for US stocks. Treasuries yields fell.
Most Read from Bloomberg
US-listed Chinese stocks rallied and futures for Hong Kong equities indicated a second day of gains was likely Thursday following sharp losses after President Xi Jinping tightened his held in the country over the weekend.
Australian stocks opened higher and Japanese futures were flat. US futures rose after being dragged down by Amazon.com Inc, Microsoft Inc., Meta Platforms Inc. and Alphabet Inc. that the S&P 500 was lower on Wednesday. Meta fell 19% in after-hours trading following third-quarter results.
The dollar traded flat after falling on Wednesday. The rate on the 10-year Treasury yield fell back to 4%. The benchmark US yield is down about 24 basis points over the past two days.
Amid challenges for equities investors, central banks are giving some optimistic signs that less aggressive monetary tightening may be on the horizon. The Bank of Canada raised interest rates by a smaller amount than expected on Wednesday, adding to suggestions that the Federal Reserve is also moving closer to shifting gears.
A contraction in services and manufacturing and fewer new home sales showed that the Fed’s efforts to cool the economy seemed to be paying off. However, economists expect the Fed to raise rates by 75 basis points for a fourth straight time when it meets next week.
“The only reprieve that would cause them to pause would be signs that inflation is easing and we’re not there yet,” Nancy Daoud, a private wealth adviser at Ameriprise Financial, said in an interview with Bloomberg TV. “They’re going to stick to their guns and raise rates in November and again in December.”
The European Central Bank is also expected to raise rates by 75 basis points later Thursday.
Oil gained further ground after touching its highest level in about two weeks after US Secretary of State Anthony Blinken said a deal with Iran was unlikely to move forward in the short term. Traders bet on rising prices for aluminum as the US considers adding the metal to sanctions against Russia, a major producer.
Read More: Stock Fissures Widen on Day of Strong Move Below Market Surface
Key events this week:
-
ECB rate decision, Thursday
-
US GDP, durable goods orders, initial jobless claims, Thursday
-
Bank of Japan policy decision, Friday
-
US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday
Some of the major movements in the markets:
Stocks
-
S&P 500 futures were up 0.4% at 8:26 am Tokyo time. The S&P 500 fell 0.7%
-
Nasdaq 100 futures rose 0.3%. The Nasdaq 100 fell 2.3%
-
The S&P ASX Index rose 0.3%
-
Hang Seng futures rose 2.1%
-
Nikkei 225 futures were little changed
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0087
-
The Japanese yen was little changed at 146.34 per dollar
-
The offshore yuan was little changed at 7.1870 per dollar
Cryptocurrencies
-
Bitcoin rose 0.3% to $20,820.68
-
Ether rose 1.4% to $1,574.67
Bonds
-
The yield on 10-year Treasuries fell 10 basis points to 4.00%
-
Japan’s 10-year yield was little changed at 0.25%
-
Australia’s 10-year yield fell seven basis points to 3.85%
Goods
Most Read from Bloomberg Businessweek
©2022 Bloomberg LP