(Bloomberg) — A tech-fueled rally that started in the US spread to stock markets in Asia and Europe Thursday. Traders braced for the next batch of inflation data and a rate decision by the European Central Bank.
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Risk appetite returned after the world’s largest technology companies spurred a stock-market bounce on Wall Street on Wednesday. The MSCI Asia Pacific Index climbed the most in almost a month. An advance of 1% in Europe’s Stoxx 600 index was led by Dutch chip-equipment maker ASML Holding NV.
Futures for the S&P 500 edged higher as traders braced for the week’s second gauge of US inflation, the producer price index, which is projected to show a moderate rise in wholesale prices. Treasury yields ticked higher.
Meanwhile, the ECB is poised for another move lower that would bring its key interest rate down a quarter-point to 3.5%. Still, policymakers are taking a cautious approach with inflation not fully vanquished.
“We still expect the ECB to remain gradual in its approach, weighing the risk of growth and inflation,” said Camille de Courcel, head of European rates strategy at BNP Paribas SA.
The consumer price index on Wednesday reinforced a measured course of action for the Federal Reserve. Swap traders have fully priced in a quarter-point reduction at the Fed’s policy announcement next week, ditching bets on a half-point rate cut.
In corporate news, OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. Nvidia Corp. Chief Executive Officer Jensen Huang said the limited supply of their products has frustrated some customers and raised tensions.
Alimentation Couche-Tard Inc. is discussing improving its takeover proposal for Seven & i Holdings Co. with the goal of convincing the Japanese convenience store operator to start engaging in discussions, people with knowledge of the matter said.
Oil extended gains from Wednesday as Hurricane Francine ripped through key oil-producing zones in the Gulf of Mexico, prompting traders to cover bearish bets. Gold traded above $2,515 per ounce.
Key events this week:
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ECB rate decision, Thursday
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US initial jobless claims, PPI, Thursday
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Eurozone industrial production, Friday
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Japan industrial production, Friday
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U. Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.1% as of 7:22 a.m. New York time
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Nasdaq 100 futures were little changed
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Futures on the Dow Jones Industrial Average rose 0.1%
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The Stoxx Europe 600 rose 1%
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The MSCI World Index rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.1019
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The British pound was little changed at $1.3048
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The Japanese yen was little changed at 142.46 per dollar
Cryptocurrencies
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Bitcoin rose 1% to $58,058.69
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Ether was little changed at $2,346.91
Bonds
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The yield on 10-year Treasuries advanced one basis point to 3.67%
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Germany’s 10-year yield advanced two basis points to 2.13%
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Britain’s 10-year yield advanced two basis points to 3.78%
Commodities
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West Texas Intermediate crude rose 1.8% to $68.53 a barrel
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Spot gold rose 0.2% to $2,516.83 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael Mackenzie and Chiranjivi Chakraborty.
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