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

(Bloomberg) – U.S. stock futures and European stocks held steady as investors eagerly awaited the release of policy minutes from the Federal Reserve’s latest meeting for potential signs of a slowing pace of price hikes. rate.

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Contracts on the S&P 500 rose slightly after the underlying gauge closed at its highest level since mid-September on Tuesday, while those on the Nasdaq 100 were little changed. The Stoxx Europe 600 traded at a new three-month high as mining and energy stocks 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.

A dollar strength gauge cleared of declines. Ten-year US Treasury yields were little changed. Oil fell as the EU considered imposing a price cap on Russian oil between $65 and $70 a barrel.

The release of minutes from the Nov. 1-2 Fed meeting — scheduled for 2 p.m. in Washington — will be studied to determine how far United policymakers have weathered a higher interest rate spike than previously reported. 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.

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 has seen recent gains after rising 4.2% on Tuesday to take the digital asset from its lowest price since November 2020.

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 6:06 a.m. PT

  • Nasdaq 100 futures are little changed

  • 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 was little changed at $1.0313

  • The British pound rose 0.3% to hit $1.1926

  • The Japanese yen was little changed at 141.37 per dollar

Cryptocurrencies

  • Bitcoin rose 2.8% to $16,584.75

  • Ether rose 3.7% to $1,171.99

Obligations

  • The 10-year Treasury yield 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% to $79.50 a barrel

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

This story was produced with assistance from Bloomberg Automation.

–With the help of Richard Henderson.

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