US Futures Rise With Fed in Focus, Alphabet Climbs: Markets Wrap

US Futures Rise With Fed in Focus, Alphabet Climbs: Markets Wrap

(Bloomberg) — Stocks rose as investors awaited near-term trading cues in a busy week of inflation data and policy decisions from the Federal Reserve and Japan.

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Futures on the S&P 500 and Nasdaq 100 climbed after Bloomberg reported that Apple Inc. is in talks to build Google’s Gemini artificial intelligence engine into the iPhone. Google parent company Alphabet Inc. advanced as much as 3% in premarket trading, while Apple added as much as 0.8%. European stocks edged higher.

Bets are mounting that the Bank of Japan will end its negative-rate policy at its meeting Tuesday, while the UK’s policy decision and inflation data are due later in the week. The main focus comes Wednesday, when Fed policy makers gather for a decision that has the potential to set the tone for global stocks for the next quarter.

While Fed Chairman Jerome Powell indicated the central bank was close to having the confidence to cut, bond traders appear to have painfully surrendered to a higher-for-longer reality. The 10-year Treasury yield held near a three-week high on Monday, having risen more than 20 basis points last week. A gauge of the dollar was steady.

“The Fed may have less confidence on inflation than before, but it still has confidence in the disinflation trend,” Bank of America economists including Michael Gapen wrote in a note to clients.

In Japan, the Nikkei 225 index climbed the most in a month and the yen traded weaker against the dollar, amid signs markets have priced in the potential for an interest-rate increase.

“Japanese stocks are rising, driven by weakness of the yen, and expectations that the currency won’t strengthen even if the central bank hikes,” said Charu Chanana, a strategist at Saxo Capital Markets based in Singapore.

Story continues

Elsewhere this week, the Reserve Bank of Australia is set to extend its rate pause while Bank Indonesia and the Bank of England also deliver policy decisions. Eurozone inflation data is due as well as Reddit Inc.’s initial public offering.

FedEx, Nike to Give Clues on Economy: US Earnings Week Ahead

In commodities, oil hit a fresh four-month high — building on the biggest weekly advance in a month — as macro-economic data from China came in ahead of expectations, and Ukrainian attacks on Russian refineries heightened geopolitical risks.

Key events this week:

Eurozone CPI, Monday

Australia rate decision, Tuesday

Japan rate decision, Tuesday

Canada inflation, Tuesday

China loan prime rates, Wednesday

Indonesia rate decision, Wednesday

UK CPI, Wednesday

US rate decision, Wednesday

Brazil rate decision, Wednesday

ECB President Christine Lagarde speaks, Wednesday

New Zealand GDP, Thursday

Taiwan rate decision, Thursday

Switzerland rate decision, Thursday

Norway rate decision, Thursday

UK rate decision, Thursday

Mexico rate decision, Thursday

European Union summit in Brussels, Thursday

Japan CPI, Friday

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 was little changed as of 9:50 a.m. London time

S&P 500 futures rose 0.3%

Nasdaq 100 futures rose 0.7%

Futures on the Dow Jones Industrial Average were little changed

The MSCI Asia Pacific Index rose 0.9%

The MSCI Emerging Markets Index rose 0.3%

Currencies

The Bloomberg Dollar Spot Index was little changed

The euro was little changed at $1.0899

The Japanese yen fell 0.1% to 149.20 per dollar

The offshore yuan was little changed at 7.2061 per dollar

The British pound was little changed at $1.2737

Cryptocurrencies

Bitcoin fell 0.5% to $67,957.01

Ether fell 1.7% to $3,571.05

Bonds

The yield on 10-year Treasuries was little changed at 4.30%

Germany’s 10-year yield advanced one basis point to 2.45%

Britain’s 10-year yield was little changed at 4.10%

Commodities

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Michael G. Wilson.

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©2024 Bloomberg L.P.

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