US futures steady as traders wait for Fed minutes: markets finish

(Bloomberg Opinion) — U.S. stock futures and European stocks were steady as investors eagerly awaited the release of policy minutes from the latest Federal Reserve meeting for possible signs that the pace of rate hikes could slow.

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S&P 500 contracts fell 0.1% after the underlying gauge closed Tuesday at its highest level since mid-September. Nasdaq 100 futures were little changed. The Stoxx Europe 600 slid to a new three-month high as travel & leisure and mining stocks rose. Shares of Credit Suisse Group AG fell below their record closing low after the bank warned of a loss in the fourth quarter.

Shares of Manchester United Plc rose in US premarket trading after the owners of the storied English soccer club said they were exploring options that could lead to a sale. Tesla Inc. gained after Citigroup Inc. upgraded the electric vehicle maker’s rating to neutral from sell. Market trading volumes are expected to be lighter given the US Thanksgiving holiday on Thursday.

A gauge of dollar strength fell after data on Wednesday showed US jobless claims rose more than expected to a three-month high, in a sign of cooling in the job market. Treasury yields ticked higher. Oil fell as the EU discussed capping Russian oil prices at between $65 and $70 a barrel.

The release of the minutes of the November 1-2 Fed meeting, scheduled for 2 p.m. in Washington, will be studied to determine how the united politicians weathered a higher spike for interest rates than the one noted earlier in their fight against inflation. Some investors anticipate that lower-than-estimated inflation numbers could prompt the Fed to ease the size of its rate hikes as early as next month’s meeting.

“Investors may be looking for clues that they have acted prematurely, or that there is actually more support for such a tightening slowdown and less for a higher terminal rate than previously thought,” said Craig Erlam, senior market analyst at oanda. europe ltd

European investors digested data showing that private sector activity in Germany and France, the euro zone’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, with the recession expected to worsen in 2023.

Meanwhile, a gauge measuring euro zone activity in manufacturing and services rose unexpectedly in November, indicating that businesses see tentative signs that the region’s economic downturn may be easing as inflation cools. record and improve future production expectations.

Bitcoin extended its rebound into a second session, breaking above the $16,000 level and sparking gains in crypto-exposed stocks in US pre-market trading. Investors remained vigilant for signs of any contagion from the empire’s collapse. FTX by Sam Bankman-Fried.

Key events this week:

  • S&P Global PMI: US, Eurozone, UK, Wednesday

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

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

  • ECB publishes report of 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 main movements in the markets:

Stocks

  • S&P 500 futures fell 0.1% as of 8:57 a.m. New York time.

  • Nasdaq 100 futures were little changed

  • Dow Jones Industrial Average futures fell 0.2%

  • The Stoxx Europe 600 rose 0.2%

  • The MSCI World Index rose 0.2%

coins

  • The Bloomberg Dollar Spot Index fell 0.1%

  • The euro rose 0.3% to $1.0330

  • The British pound rose 0.7% to $1.1969

  • The Japanese yen rose 0.1% to 141.07 per dollar

CRYPTOCURRENCIES

  • Bitcoin rose 1.8% to $16,418.46

  • Ether rose 2.4% to $1,156.92

Captivity

  • The 10-year Treasury yield rose one basis point to 3.77%.

  • Germany’s 10-year yield was little changed at 1.99%

  • Britain’s 10-year yield fell six basis points to 3.08%

raw Materials

  • West Texas Intermediate crude fell 3.4% to $78.21 a barrel

  • Gold futures fell 0.4% to $1,748.10 an ounce.

This story was produced with the assistance of Bloomberg Automation.

–With the assistance of Richard Henderson.

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