Stocks showed promise as tech giants Microsoft Corp. and Alphabet Inc. prepared to release earnings. The bond market also found its footing after recent volatility, suggesting a possible overreaction. Ten-year Treasury yields fell briefly before stabilizing.
Across the pond, Europe’s Stoxx 600 index inched higher, while U.S. futures suggested a positive turn for stocks after a five-day slide. Bitcoin surpassed $35,000, while the euro faced challenges against the dollar due to difficulties in the French and German economies.
Treasury bonds stabilized after prominent voices expressed concern about a possible economic slowdown. This sparked speculation that the recent declines may have been too drastic, which could lead the Federal Reserve to consider cutting interest rates. Unpredictable moves in government bonds have left investors uneasy, especially as a robust economy complicates predictions about the Federal Reserve’s stance on rates. Furthermore, rising public debt and global tensions increase uncertainty.
Patrick Armstrong, chief investment officer at Plurimi Wealth LLP, urged caution, saying: “This may not be the best time to buy, but I wouldn’t recommend betting against it either.”
Brent crude oil halted its two-day slide, topping $90 a barrel. French President Emmanuel Macron called for a global coalition against Hamas and warned other Iran-backed groups against escalating the conflict during his visit to Israel, where he met with Prime Minister Benjamin Netanyahu.
In a separate development, Bitcoin hit its highest level since May last year, driven by the potential approval of the first US spot Bitcoin ETFs in the coming weeks. Big players like BlackRock Inc. and Fidelity Investments are competing to offer these products.
Cryptocurrency-related companies made significant gains in pre-market trading in the United States. Marathon Digital, Riot Platforms, Hut 8 Mining and Cleanspark all rose by at least 12%.
Nasdaq 100 index futures showed an increase of 0.5%. Mark Haefele, chief investment officer at UBS Global Wealth Management, expressed confidence in strong results from leading technology and growth companies, despite a relatively slow start to the earnings season.
In Asia, most Chinese stock stocks saw a rise after the nation’s sovereign wealth fund intervened by buying exchange-traded funds to support prices.
This rally in Chinese stocks indicates a commitment by authorities to intervene when there is a significant downtrend, according to Raymond Chen, fund manager at Zizhou Investment Asset Management.
This week’s featured events:
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Reserve Bank of Australia Governor Michele Bullock will address the Commonwealth Bank Annual Conference in Sydney on Tuesday.
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The International Energy Agency, based in Paris, publishes its annual report on global energy outlook on Tuesday.
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Eurozone S&P Global Services PMI and S&P Global Manufacturing PMI reports will be released on Tuesday.
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Eurozone bank lending survey on Tuesday.
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US S&P Global Manufacturing PMI on Tuesday.
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Microsoft and Alphabet earnings reports on Tuesday.
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Australia CPI on Wednesday.
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Germany’s IFO business climate report on Wednesday.
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Canada rate decision on Wednesday.
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New home sales in the United States on Wednesday.
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IBM and Meta earnings reports on Wednesday.
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European Central Bank interest rate decision with President Christine Lagarde at a press conference on Thursday.
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US Wholesale Inventories, GDP, US Durable Goods, Initial Jobless Claims and Pending Home Sales Reports for Thursday.
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Intel and Amazon earnings reports on Thursday.
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China industrial profits report on Friday.
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Japan Tokyo CPI report on Friday.
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US PCE deflator, personal spending and income, University of Michigan Consumer Confidence reports Friday.
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Exxon Mobil earnings report for Friday.
Overview of market trends:
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The Stoxx Europe 600 showed little change at 1:18 p.m. London time.
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S&P 500 futures rose 0.5%.
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Nasdaq 100 futures rose 0.5%.
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Dow Jones Industrial Average futures rose 0.4%.
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The MSCI Asia Pacific Index rose 0.2%.
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The MSCI emerging markets index rose 0.1%.
Currency exchange:
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The Bloomberg Dollar Spot Index rose 0.1%.
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The euro fell 0.4% to $1.0627.
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The Japanese yen was stable at 149.80 per dollar.
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The offshore yuan fell 0.1% to 7.3196 per dollar.
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The pound fell 0.3% to $1.2214.
Cryptocurrency Highlights:
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Bitcoin rose 9.3% to $34,482.7.
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Ether rose 7.6% to $1,839.93.
Bonus Update:
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The 10-year Treasury yield rose three basis points to 4.88%.
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The 10-year German bond yield decreased three basis points to 2.85%.
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The 10-year UK bond yield fell two basis points to 4.58%.
Focus on commodities:
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Brent crude rose 0.3% to $90.08 a barrel.
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Spot gold fell 0.6% to $1,961 an ounce.
Also read: Tech Giants’ Top Earnings Reports: What Investors Should Watch Out For