Stocks, Bonds Pause After Choppy Week; Oil Falls: Markets Wrap – Yahoo Finance

January 8, 2024

(Bloomberg) — European stocks fell on Monday as Asian markets fell, but bonds held firm as investors readjusted their bets after last week’s sharp selloff. Boeing shares fell nearly 10% in pre-market trading in the United States.

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The Stoxx600 benchmark fell 0.3% as the Hang Seng China Enterprise Stock Index hit its lowest close since November 2022, but there was no obvious upside factor. As the grounding of the 737 Max 9 aircraft accelerates worldwide, US futures prices fell slightly, focusing on Boeing. Brent crude oil fell below $78 as Saudi Arabia lowered official selling prices across the region amid continued market weakness.

U.S. economic data was mixed on Friday, with global stocks capping a week of their steepest decline since October on speculation the Federal Reserve may be in no hurry to cut interest rates. In response, the market is searching for direction. The U.S. inflation report due on Thursday and the start of earnings season over the weekend could provide further stimulus to investors.

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Sentiment in China remains extremely negative, Nomura Group analysts including Singapore's Chetan Seth wrote in a note to clients. “There are increasing signs of economic support, but equity investors still don't seem convinced,” the person said.

In Europe, German factory orders rose less sharply than expected in November, data showed on Monday, a sign of disappointment for Europe's largest economy. Eurozone retail sales and consumer confidence figures due later in the day could provide better guidance on the region's economic recovery.

U.S. Treasury yields remained unchanged at 4.05%. Some traders are unfazed by the recent pullback and see it as an opportunity to grab yields higher before the Federal Reserve starts cutting rates.

The move came Friday as bond prices fell after the Labor Department reported that job growth unexpectedly accelerated last month. But the selling was capped by a rush of buyers as the 10-year Treasury yield neared 4.1%, its highest level since mid-December.

In commodities, Brent fell more than 1%, halting last week's gains after Saudi Arabia's price cuts. The cuts underline the deteriorating global outlook, which outweighs concerns over Red Sea tensions and supply disruptions in Libya, while global supplies, including in the United States, remained strong.

This week's main events:

Eurozone Economic Confidence, Retail Sales, Consumer Confidence, Monday
Atlanta Fed President Rafael Bostic speaks on Monday
US House of Representatives returns from recess on Monday
Australian retail sales Tuesday
Japan Tokyo CPI, Household Expenditure, Tuesday
Eurozone unemployment rate, Tuesday
World Economic Forum's Global Risks Report released on Wednesday
US wholesale inventory Wednesday
Wednesday deadline for U.S. Securities and Exchange Commission to vote on Bitcoin ETF application
New York Fed President John Williams speaks on Wednesday
US CPI, new unemployment claims, Thursday
China CPI, PPI, Trade, Friday
French consumer price index, Friday
UK industrial production, Friday
US PPI, Friday
On Friday, Bank of America, Bank of New York Mellon, BlackRock, Citigroup, JPMorgan Chase and Wells Fargo reported fourth-quarter results.
Minneapolis Fed President Neel Kashkari speaks on Friday