US Futures Flat As Traders Await Fed Minutes: Markets Wrap

(Bloomberg) — U.S. stock futures and European stocks were flat as investors looked to the policy minutes from the Federal Reserve’s latest meeting for potential signs that the pace of interest rate hikes may slow.

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Contracts on the S&P 500 rose after the underlying gauge closed at its highest level since mid-September on Tuesday, while contracts on the Nasdaq 100 were little changed. The Stoxx Europe 600 traded at a three-month high, as mining and energy stocks rose. Credit Suisse Group shares fell below a record low at the close after the bank warned of a fourth-quarter loss.

Shares of Manchester United Plc jumped in US pre-sale trading after the owners of the historic English football club said they were exploring options that could lead to a sale. Tesla Inc. acquired After Citigroup Inc. The electric automaker upgrades it to neutral from sale. Market volumes are expected to be less intense, given the Thanksgiving holiday in the US on Thursday.

The dollar strength gauge erased the declines. Ten-year US Treasury yields were little changed. Oil fell as the European Union discussed imposing a cap on the price of Russian oil between $65 and $70 per barrel.

The publication of the minutes of the Fed’s November 1-2 meeting – scheduled for 2pm in Washington – will be studied to see how the Fed’s Fed policymakers were above a higher peak in interest rates than previously indicated in their fight against inflation. Some investors are speculating that lower-than-expected inflation figures may prompt the Fed to ease up on rate hikes as early as next month’s meeting.

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said Craig Erlam, chief market analyst at Oanda Europe Ltd.

European investors digested data showing that private sector activity in Germany and France – the eurozone’s two largest economies – contracted in November, painting a bleak picture for a region that may already be in recession. A separate survey showed that the UK economy is in recession, and the downturn is expected to worsen in 2023.

Meanwhile, a measure of eurozone activity in manufacturing and services rose unexpectedly in November, suggesting that businesses are seeing tentative signs that the region’s economic slowdown may be abating as record inflation eases and prospects for future output improve.

Bitcoin held on to its recent gains after surging 4.2% on Tuesday to lift the digital asset from its lowest price since November 2020.

Main events this week:

  • S&P Global PMIs: US, Eurozone, UK, Wed

  • US Mortgage Applications, Durable Goods, Initial Jobless Claims, University of Michigan Sentiment, New Home Sales, Wednesday

  • Minutes of the Federal Reserve meeting on November 1 and 2, Wednesday

  • The European Central Bank publishes a report on its October policy meeting, Thursday

  • US stock and bond markets are closed for the Thanksgiving holiday, Thursday

  • US stock and bond markets close early on Friday

Some of the major movements in the markets:

Stores

  • S&P 500 futures were up 0.1% as of 6:06 a.m. New York time.

  • Nasdaq 100 futures have changed little

  • Futures contracts on the Dow Jones Industrial Average changed little

  • Stoxx Europe 600 rose 0.1%

  • The MSCI World Index rose 0.1%.

currencies

  • The Bloomberg Spot Dollar Index has not changed

  • The euro was little changed at $1.0313

  • The British pound rose 0.3 percent to $1.1926

  • The Japanese yen was little changed at 141.37 per dollar

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Digital currencies

  • Bitcoin rose 2.8% to $16,584.75

  • Ether rose 3.7 percent to $1,171.99

bonds

  • The yield on the 10-year Treasury note was little changed at 3.75%.

  • Germany’s 10-year yield was little changed at 1.98%.

  • The UK 10-year yield fell four basis points to 3.10%.

goods

  • West Texas Intermediate crude fell 1.8 percent to $79.50 a barrel

  • Gold futures fell 0.2 percent to $1,752.10 an ounce

This story was produced with help from Bloomberg Automation.

– With assistance from Richard Henderson.

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