In Asia on Monday, traders will be watching a speech and media briefing by Bank of Japan Governor Kazuo Ueda for indications of the central bank’s next policy move after officials raised concerns over the rapid weakening of the yen.
In Asia on Monday, traders will be watching a speech and media briefing by Bank of Japan Governor Kazuo Ueda for indications of the central bank’s next policy move after officials raised concerns over the rapid weakening of the yen.Photographer: Kentaro Takahashi/Bloomberg
Have a confidential tip for our reporters? Get in Touch
Before it’s here, it’s on the Bloomberg Terminal
LEARN MORE
By Margaryta Kirakosian
November 17, 2024 at 2:32 PM PST
Updated on November 18, 2024 at 12:51 AM PST
Stocks posted small moves after last week’s retreat erased a big chunk of the equity-market gains since Donald Trump’s US election win, with traders looking to fresh pointers on growth and the path of interest rates.
Europe’s Stoxx 600 was little changed, while contracts for the S&P 500 edged higher. The underlying index has given up more than half its post-election gains as the prospect of a more-hawkish Federal Reserve forced traders to dial down their enthusiasm for so-called Trump trades. Ten-year Treasury yields steadied after topping 4.5% for the first time since May last Friday.
Concerns are lingering about the President-elect’s potentially inflationary economic policies, with attention now on his pick for Treasury secretary. Friday’s upbeat US retail sales data reduced expectations for the Fed to cut interest rates.
“It should be a quieter week as the recent relentless wave of US macro and political news flow in theory slows down,” said Jim Reid, Deutsche Bank’s global head of macro and thematic research. “The main story on this front being on potential political appointments for the new Trump administration with Treasury secretary the one creating most interest.”
WATCH: Anna Edwards, Kriti Gupta, Guy Johnson, and Mark Cudmore break down today’s key themes
Longer-term, there are hopes that the stocks gains will resume. Morgan Stanley’s Mike Wilson, once considered a prominent bear on Wall Street, sees US equities benefiting from improving economic growth and further Fed interest-rate cuts in 2025. He predicts the S&P 500 will end next year up around 11% from Friday’s close.
Inflation, Nvidia
Eurozone and UK inflation readings on Tuesday and Wednesday, respectively, will help investors gauge the outlook for Bank of England and European Central Bank policy. A swathe of officials from the respective institutions are also due to speak. Nvidia Corp.’s results on Wednesday may test the sustainability of AI-led stock gains.
Asian shares struggled for direction after a policy-induced intraday rally in China lost steam, offsetting strong gains in heavyweight Samsung Electronics Co.
The resumed selling in Chinese stocks offers another reminder of the difficulties faced by Beijing to prop up the market in the absence of potent fiscal stimulus.
In currencies, the Bloomberg dollar index was largely steady after reaching a two-year high last week. Bitcoin recovered from its biggest two-day retreat since the US election in choppy trading that reflects shifting assessments of the impact of Trump’s policy agenda.
Oil rebounded and gold advanced after suffering its worst weekly drop since 2021.
Read More: Treasuries See 2024 Gains Dwindle With December Fed Cut at Risk
Key events this week:
Group of 20 Summit in Brazil begins, Monday
European Union foreign ministers meet in Brussels, Monday
RBA meeting minutes, Tuesday
Eurozone CPI, Tuesday
Canada CPI, Tuesday
China loan prime rates, Wednesday
Indonesia rate decision, Wednesday
South Africa retail sales, CPI, Wednesday
UK CPI, Wednesday
Nvidia earnings, Wednesday
ECB President Christine Lagarde and Vice President Luis De Guindos speak, Wednesday
ECB issues financial stability review, Wednesday
Fed Governor Lisa Cook, Fed Governor Michelle Bowman speak, Wednesday
BOE Deputy Governor Dave Ramsden speaks, Wednesday
RBA Governor Michele Bullock speaks, Thursday
Japan CPI, Friday
India HSBC Manufacturing & Services PMI, Friday
Eurozone HCOB Manufacturing & Services PMI, Friday
UK retail sales, S&P Global Manufacturing & Services PMI, Friday
US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 8:27 a.m. London time
S&P 500 futures rose 0.2%
Nasdaq 100 futures rose 0.7%
Futures on the Dow Jones Industrial Average fell 0.2%
The MSCI Asia Pacific Index was little changed
The MSCI Emerging Markets Index rose 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro rose 0.1% to $1.0553
The Japanese yen fell 0.3% to 154.73 per dollar
The offshore yuan fell 0.2% to 7.2517 per dollar
The British pound was little changed at $1.2629
Cryptocurrencies
Bitcoin rose 3.1% to $91,928.53
Ether rose 2.1% to $3,126.39
Bonds
The yield on 10-year Treasuries was little changed at 4.44%
Germany’s 10-year yield was little changed at 2.36%
Britain’s 10-year yield was little changed at 4.47%
Commodities
Brent crude rose 0.6% to $71.48 a barrel
Spot gold rose 0.9% to $2,587.14 an ounce
This story was produced with the assistance of Bloomberg Automation.
— With assistance from Winnie Hsu and Catherine Bosley
Follow all new stories by Margaryta Kirakosian
Most Read
Trump Team Is Seeking to Ease US Rules for Self-Driving Cars
Wall Street Bankers Spot a Fat Payday in $1 Trillion AI Hysteria
Xi’s Olive Branch to Trump Comes With Warning on Red Lines
Goldman Says ‘Go for Gold’ as Central Banks Buy, Fed Cuts in ‘25
Trump Treasury Cabinet Pick in Flux as Jockeying Slows Selection