(Bloomberg) — Stocks rose as earnings optimism offset concerns about long-term interest rates remaining high. The yen fell to its lowest level in 34 years before rebounding.
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Europe’s Stoxx 600 index rose 0.4%, while shares in Royal Philips NV, which reached a lower-than-expected compensation settlement in the U.S., rose 37%. The S&P 500 contracted 0.2 as Tesla shares rose as much as 6.6% in pre-market U.S. trading after the company cleared two key hurdles to bring driver-assistance systems to China. %Rose. The yield on the 10-year Treasury note fell 4 basis points to 4.62%, and the dollar weakened.
Strong results from Microsoft and Alphabet over the weekend pushed U.S. stocks to weekly highs in 2024, even as data highlighted the severity of inflation in the world’s largest economy. With earnings season in full swing, traders are keeping an eye on Wednesday’s Federal Reserve policy meeting.
“The FOMC is bound to make a significant reversal of its earlier forecast for significant policy easing this year,” Société Générale economists including Klaus Bader said in a note to clients.
The Japanese yen, on the other hand, recovered after falling above 160 yen to the dollar. Low liquidity due to domestic holidays was cited as a reason for the volatile movements. Masato Kanda, the head of the currency authority, was asked by reporters whether there was any intervention, and he said, “I have no comment at this point.”
Read more: Crazy swing mars Japan holiday, traders fooled by yen ‘bingo’
In U.S. markets, swap traders now expect the Fed to cut rates only once in 2024, far less than the roughly six quarter-point cut they had expected in early 2024. It was the biggest monthly decline since February of last year, as FedSpeak’s hawkish outlook and strong economic data dampened expectations for a rate cut.
Read more: 60,000 headlines show Powell’s hawkish shift is just beginning
The Hang Seng index rose more than 2% as Hong Kong’s benchmark stock index headed for a technical bull run after a sharp rise in Chinese real estate stocks added new impetus to this month’s rally.
The People’s Bank of China has advised some regional financial institutions to reduce investment in ultra-long-term bonds to reduce risks, the people said. The directive follows similar guidance for local financial institutions earlier this month as the People’s Bank steps up efforts to cool the soaring prices of long-term sovereign debt.
Low oil prices prompted US Secretary of State Antony Blinken to step up efforts to secure a truce in Gaza at a meeting in the Middle East on Monday that could be his last chance to persuade Israel to halt its attack on Rafah. .
Company highlights:
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Elon Musk made an unannounced visit to China on Sunday. The surprise visit appears to have paid off quickly, with Tesla clearing two key hurdles to bring driver-assistance systems to the world’s largest car market.
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L’Occitane International’s billionaire owner, Reynold Geiger, is close to a proposal to take the skin care company private, according to people familiar with the matter.
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Royal Philips NV has set aside €982 million ($1.1 billion) in reserves as part of a planned settlement in the United States to cover claims related to recalls of medical devices that treat sleep apnea. Scheduled to be recorded
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Atos SE, a French IT services company in financial crisis, has increased its debt to 1.7 billion euros ($1.8 billion) from an initial 1.2 billion euros, and says it hopes to further reduce its debt with an updated rescue plan.
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Blackstone has made a new offer for Hypnosis Songs Fund, beating a previous bid by music investment firm Concord, intensifying the bidding war for the UK-listed company.
This week’s main events:
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Eurozone economic confidence, consumer confidence, Monday
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Australian retail sales Tuesday
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China Caixin Manufacturing PMI, Non-Manufacturing PMI, Manufacturing PMI, Tuesday
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Japan’s unemployment rate, industrial production, retail sales, Tuesday
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Eurozone CPI, GDP, Tuesday
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Colombia interest rate decision Tuesday
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Amazon profits Tuesday
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New Zealand unemployment rate Wednesday
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UK S&P Global/CIPS Manufacturing PMI, Wednesday
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US interest rate decisions Wednesday
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Indonesia CPI, Thursday
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South Korea CPI, S&P Global Manufacturing PMI, Thursday
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Eurozone S&P Global Manufacturing PMI, Thursday
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Apple’s earnings, Thursday
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Eurozone unemployment rate, Friday
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Norwegian interest rate decision Friday
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US unemployment rate, nonfarm payrolls, ISM services, Friday
The main movements in the market are:
stock
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As of 9:36 a.m. London time, the Stoxx European 600 was up 0.3%.
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S&P 500 futures rose 0.2%
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Nasdaq 100 futures rose 0.3%
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Dow Jones Industrial Average futures rose 0.2%.
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MSCI Asia Pacific Index rose 0.9%
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MSCI Emerging Markets Index rose 0.8%
currency
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The Bloomberg Dollar Spot Index fell 0.3%.
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The euro rose 0.2% to $1.0715.
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The Japanese yen rose 1.7% to 155.71 yen to the dollar.
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The offshore yuan rose 0.2% to 7.2567 yuan to the dollar.
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The British pound rose 0.3% to $1.2532.
cryptocurrency
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Bitcoin fell 2.1% to $62,354.01.
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Ether fell 4.2% to $3,172.12.
bond
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The 10-year Treasury yield fell 4 basis points to 4.63%.
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Germany’s 10-year bond yield fell 3 basis points to 2.54%.
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UK 10-year bond yields fell 2 basis points to 4.31%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Matthew Burgess, Divya Patil, and Richard Henderson.
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