(Bloomberg) — US equity-index futures slipped ahead of economic data that will help set the path for Federal Reserve policy, while Micron Technology Inc.’s disappointing sales forecast weighed on tech giants.
Most Read from Bloomberg
Reports on economic growth and weekly unemployment claims are on traders’ radar Thursday before tomorrow’s key inflation figures, after Fed Governor Michelle Bowman tempered market expectations for interest rate cuts. Treasury yields held yesterday’s rise and a gauge of the dollar hovered near an eight-month high.
“It’s all about the Fed — higher for longer is keeping the front end of rates very high, drawing money into the US and keeping the dollar strong,” said Andrew Brenner, head of international fixed income at NatAlliance Securities LLC.
Micron’s underwhelming outlook highlighted the risks of relying on artificial intelligence chip makers to fuel the stock rally. The shares slumped as much as 8% in premarket trading, dragging down a number of megacap tech peers including Nvidia Corp.
Micron is among the companies that have gotten a lift from the mania for AI-related stocks, with its shares more than doubling in the year prior to its Wednesday report. But even with an outlook roughly in line with the average of analyst estimates, it was punished for not outperforming elevated expectations.
In other US premarket moves, International Paper Co. shares plunged after Suzano SA ended its pursuit of the US paper and packaging company. That clears the way for International Paper to acquire UK rival DS Smith Plc, whose shares soared.
Europe’s stock benchmark dipped, with traders in holding mode ahead of Sunday’s French elections. Fashion retailer Hennes & Mauritz AB slumped more than 14% after an earnings miss. GSK Plc fell after US health officials delivered a fresh regulatory blow to its blockbuster RSV vaccine. Gucci owner Kering gained after a double-upgrade from Bank of America Corp.
Yen Pares Drop
Stocks in Japan, Hong Kong, South Korea and China all declined, putting the MSCI Asia Pacific gauge on course for its first loss in three days. The yen pared some of the declines it made Wednesday when it tumbled to 160.87 per dollar, the weakest level since 1986.
MSCI Inc.’s key gauge for Chinese stocks is on course for a technical correction as traders struggle to find catalysts ahead of a July meeting of the nation’s top leaders. The MSCI China Index dropped as much as 2% on Thursday, taking declines from a May 20 high to about 10%.
In commodities, gold steadied after a two-day decline, while oil traded in a narrow range ahead of the next round of US economic data. Iron ore held a two-day gain, supported by signs that Chinese demand may pick up after property measures took effect across the country’s mega cities.
Key events this week:
US durable goods, initial jobless claims, GDP, Thursday
Nike releases earnings, Thursday
Japan Tokyo CPI, unemployment, industrial production, Friday
US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
Fed’s Thomas Barkin speaks, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.2% as of 5:51 a.m. New York time
Nasdaq 100 futures fell 0.2%
Futures on the Dow Jones Industrial Average fell 0.2%
The Stoxx Europe 600 fell 0.2%
The MSCI World Index was little changed
Currencies
The Bloomberg Dollar Spot Index fell 0.2%
The euro rose 0.2% to $1.0699
The British pound rose 0.2% to $1.2645
The Japanese yen rose 0.2% to 160.50 per dollar
Cryptocurrencies
Bitcoin rose 0.3% to $61,129.22
Ether was little changed at $3,390.36
Bonds
The yield on 10-year Treasuries was little changed at 4.34%
Germany’s 10-year yield advanced two basis points to 2.47%
Britain’s 10-year yield advanced four basis points to 4.17%
Commodities
West Texas Intermediate crude rose 0.6% to $81.41 a barrel
Spot gold rose 0.6% to $2,312.13 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael Msika, Richard Henderson and Divya Patil.
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
