U.S. futures flat as traders await Fed minutes: Market wrap-up

(Bloomberg) – U.S. stock futures and European equities held steady as investors eagerly await the release of minutes from the Federal Reserve’s latest meeting for potential signs that the pace of rate hikes may be slowing. .

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Contracts on the S&P 500 edged higher after the underlying gauge closed at its highest level since mid-September on Tuesday, while those on the Nasdaq 100 gained 0.2%. The Stoxx Europe 600 hit a new three-month high as stocks in the travel and leisure and mining sectors advanced. Shares of Credit Suisse Group AG fell below their record closing low after the bank warned of a fourth-quarter loss.

Shares of Manchester United Plc jumped in pre-market trading in the United States after the owners of the historic English soccer club said they were exploring options that could lead to a sale. Tesla Inc. won after Citigroup Inc. upgraded the stalled electric vehicle maker from selling. Market trading volumes are expected to be lighter, given the US Thanksgiving holiday on Thursday.

Oil fell as the EU considered imposing a price cap on Russian oil between $65 and $70 a barrel. A dollar strength gauge erased earlier declines. Yields on ten-year US Treasuries rose one basis point.

The release of minutes from the Nov. 1-2 Fed meeting — scheduled for 2 p.m. in Washington — will be studied to determine how well United policymakers overshot a higher-than-reported interest rate spike. previously in their fight against inflation. Some investors predict that lower-than-estimated inflation numbers could prompt the Fed to moderate the scale of its rate hikes as early as next month.

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

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

Meanwhile, an indicator measuring euro zone activity in manufacturing and services rose unexpectedly in November, signaling that businesses are seeing tentative signs that the region’s economic slump may be easing in the future. as record inflation cools and expectations for future output improve.

Bitcoin extended its rebound into a second session, breaking above the $16,000 level and driving gains in stocks exposed to the cryptocurrency in pre-trade trading in the United States. Investors were still watching for signs of contagion from the collapse of Sam Bankman-Fried’s FTX empire.

Key events this week:

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

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

• Minutes of the Federal Reserve’s Nov. 1-2 meeting, Wednesday

• The ECB publishes the minutes of its October policy meeting on Thursday

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

• U.S. stock and bond markets close early on Friday

Some of the major movements in the markets:

Shares

• S&P 500 futures rose 0.1% at 7:15 a.m. PT

• Nasdaq 100 futures rose 0.2%

• Dow Jones Industrial Average futures are little changed

• The Stoxx Europe 600 rose 0.1%

• The MSCI World index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro rose 0.2% to $1.0324

• The British pound rose 0.4% to hit $1.1931

• The Japanese yen fell 0.1% to 141.43 per dollar

Cryptocurrencies

• Bitcoin rose 2.7% to $16,560.28

• Ether rose 4% to $1,174.95

Obligations

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

• Germany’s 10-year rate rose two basis points to 2.00%

• The UK 10-year yield fell three basis points to 3.11%

Goods

This story was produced with assistance from Bloomberg Automation.

—With help from Richard Henderson.

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