Stock Rally Spreads as Tech Bounce Gains Momentum: Markets Wrap

(Bloomberg) — Stocks rallied, tracking gains in Asian markets as a tech-fueled rebound spread globally.

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Europe’s Stoxx 600 index jumped 1%, led by gains in the technology sector. Futures for the S&P 500 and the dollar were flat. The MSCI Asia Pacific Index climbed the most in almost a month. Treasury yields ticked higher.

Risk appetite has returned after the world’s largest technology companies spurred a stock-market bounce on Wall Street on Wednesday.

The European Central Bank is poised to cut interest rates again on Thursday, bringing its key rate a quarter-point lower to 3.5%. Still, policymakers are taking a cautious approach with inflation not fully vanquished.

“We still expect 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

Resilient inflation and labor market data reinforce a measured course of action for the Federal Reserve too. In the wake of monthly consumer price date Wednesday, 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:

ECB rate decision, Thursday
US initial jobless claims, PPI, Thursday
Eurozone industrial production, Friday
Japan industrial production, Friday
U. Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 1% as of 9:27 a.m. London time
S&P 500 futures were little changed
Nasdaq 100 futures were little changed
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index rose 1.5%
The MSCI Emerging Markets Index rose 1.2%

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1017
The Japanese yen fell 0.2% to 142.68 per dollar
The offshore yuan was little changed at 7.1303 per dollar
The British pound was little changed at $1.3046

Cryptocurrencies

Bitcoin rose 1.4% to $58,320.66
Ether rose 0.7% to $2,364.69

Bonds

The yield on 10-year Treasuries advanced two basis points to 3.67%
Germany’s 10-year yield advanced two basis points to 2.13%
Britain’s 10-year yield advanced two basis points to 3.78%

Commodities

Brent crude rose 1.3% to $71.53 a barrel
Spot gold rose 0.3% to $2,518.96 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Michael Mackenzie and Chiranjivi Chakraborty.