(Bloomberg) — European stocks posted small moves as traders sought fresh catalysts in the wake of the latest tech-driven rally in the US.
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The Stoxx 600 was little changed, while US futures fluctuated after Tuesday’s gains. The British pound reversed modest losses after inflation fell to the Bank of England’s target for the first time in almost three years. There’s no trading of Treasuries globally on Wednesday due to a holiday in the US.
Traders pushed the S&P 500 benchmark closer to the 5,500 mark on Tuesday, betting the potential for Federal Reserve rate cuts will keep fueling the tech industry. Nvidia Corp. became the world’s most-valuable company to extend this year’s record-breaking surge.
Mixed economic data showed US industrial production increased, helped by a broad-based pickup in factory output. Separately, retail sales barely rose and prior months were revised lower. A raft of Fed officials reiterated the need for more evidence of cooling inflation before lowering rates.
In Asia, China’s 10-year bond futures rose to a record intraday high amid a months-long bull run in the country’s debt market. PBOC Governor Pan said the central bank, together with the finance ministry, is studying how to implement government bond trading.
Japan’s bond futures fell after a Bloomberg report that the Ministry of Finance is weighing a plan to shift more of its issuance to shorter-maturity bonds. That would signify a major change as the central bank moves to cut purchases of government debt.
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In commodities, oil steadied after closing at a seven-week high as a sustained risk-on mood in wider markets outweighed signs of further stockpile growth. Gold was little changed.
Key events this week:
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US Juneteenth holiday, Wednesday
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China loan prime rates, Thursday
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Eurozone consumer confidence, Thursday
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UK BOE rate decision, Thursday
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US housing starts, initial jobless claims, Thursday
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Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday
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US existing home sales, Conf. Board leading index, Friday
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Fed’s Thomas Barkin speaks, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 was unchanged as of 8:14 a.m. London time
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S&P 500 futures were little changed
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Nasdaq 100 futures rose 0.2%
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Futures on the Dow Jones Industrial Average were little changed
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The MSCI Asia Pacific Index rose 1.1%
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The MSCI Emerging Markets Index rose 1.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0737
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The Japanese yen was little changed at 157.71 per dollar
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The offshore yuan was little changed at 7.2757 per dollar
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The British pound rose 0.2% to $1.2729
Cryptocurrencies
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Bitcoin rose 1% to $65,518.31
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Ether rose 2.6% to $3,549.86
Bonds
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The yield on 10-year Treasuries was little changed at 4.22%
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Germany’s 10-year yield declined one basis point to 2.38%
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Britain’s 10-year yield advanced two basis points to 4.07%
Commodities
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi, Shery Ahn, Hooyeon Kim, Matthew Burgess, Alex Gabriel Simon and John Cheng.
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