(Bloomberg) — European stocks relinquished some of the gains they’ve achieved after Wednesday’s softer US inflation print as the Federal Reserve’s more hawkish tone on interest rates weighed on sentiment.
Most Read from Bloomberg
The Stoxx 600 dipped 0.3% on Thursday after notching up its biggest advance in a month during the previous session. Futures contracts for the S&P 500 and Nasdaq 100 pointed higher, while the dollar and Treasuries were little changed.
The European Union’s bonds fell as bets the bloc’s debt would soon be added to key sovereign benchmarks received an early blow.
Risk-on assets had rallied after a report showed the US core consumer price index fell to the lowest in more than three years. Later, the Federal Reserve penciled in just one quarter point interest-rate cut this year, down from three seen in March.
“The Fed dot plot was marginally on the hawkish side, causing some pullback in the markets,” said Mohit Kumar, chief economist for Europe at Jefferies International. Any selloff in stocks would be a buying opportunity, he said.
Adding to the caution, European Central Bank Governing Council member Joachim Nagel warned that consumer price growth in the euro zone is proving stubborn.
“We are on a bumpy road, but we all know that the last mile is the most complicated one,” the Bundesbank president said. Governing Council Madis Muller is due to speak later on Thursday.
In commodities, oil dipped after a three-day advance as investors weighed an unexpected build in US crude stockpiles and the higher-for-longer Fed rate outlook. Gold declined.
Key events this week:
Eurozone industrial production, Thursday
US PPI, initial jobless claims, Thursday
Tesla annual meeting, Thursday
New York Fed President John Williams moderates a discussion with Treasury Secretary Janet Yellen, Thursday
Bank of Japan’s monetary policy decision, Friday
Chicago Fed President Austan Goolsbee speaks, Friday
US University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.3% as of 8:27 a.m. London time
S&P 500 futures rose 0.3%
Nasdaq 100 futures rose 0.9%
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index was little changed
The MSCI Emerging Markets Index rose 0.8%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0808
The Japanese yen fell 0.3% to 157.23 per dollar
The offshore yuan was little changed at 7.2659 per dollar
The British pound fell 0.1% to $1.2783
Cryptocurrencies
Bitcoin fell 0.6% to $67,654.21
Ether fell 1.4% to $3,503.43
Bonds
The yield on 10-year Treasuries was little changed at 4.32%
Germany’s 10-year yield advanced three basis points to 2.56%
Britain’s 10-year yield advanced three basis points to 4.16%
Commodities
Brent crude fell 0.4% to $82.30 a barrel
Spot gold fell 0.5% to $2,314.25 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Allegra Catelli.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
