July 24, 2024
Finance

Stocks Steady After Selloff; Crude Extends Gains: Markets Wrap


(Bloomberg) — Stocks steadied after a bruising start to the year as investors awaited fresh pointers on the timing of possible interest-rate cuts. Oil continued its surge as conflict in the Middle East added to supply concerns.

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US equity futures climbed and Europe’s Stoxx 600 added 0.4%, supported by oil majors including TotalEnergies SE and BP Plc after crude jumped more than 4% in two sessions. Bonds fell, with the 10-year Treasury yield up four basis points at 3.95%.

With a new-year retreat casting a shadow on markets, traders are turning their attention to key US non-farm payrolls data on Friday for signs on the health of the economy and the scope for rate cuts. Geopolitics is also in focus amid fears the war against Hamas could morph into a wider regional conflict.

“There was some sort of a ‘dry January’ syndrome across markets these two last sessions,” said Vincent Juvyns, global market strategist at JPMorgan Asset Management.

The Nasdaq 100 Index slid almost 3% so far this year as investors questioned whether last year’s euphoric surge was excessive. Investors like Juvyns say markets are due for a slight pullback, but the broader outlook remains positive for stocks.

“The macro environment isn’t bad for equity markets and we’re reasonably positive for the US and Japan markets,” he added.

Brent crude traded near $79 a barrel after supply disruptions in Libya and as Iran said attacks that killed almost 100 people in the country were carried out to punish its stance against Israel.

Ten-year bonds in Europe and the US resumed declines. French inflation edged higher in December and investors are awaiting a print from Germany, with euro-area figures due Friday. Minutes on Wednesday from the Fed’s December meeting suggested rates could remain at restrictive levels “for some time.”

“This confirms that things won’t move as quickly as some would like,” said Lindsay James, investment strategist at Quilter Investors. “It needs to be accepted that the Fed is still very data driven around inflation and the economic data.”

Apple, JD Sports

Among equity movers, Apple Inc. fell 0.7% in premarket trading, poised to extend losses for a fourth session after Piper Sandler cut its rating to neutral from overweight. The broker said it’s concerned about iPhone inventory levels.

In London, Next Plc rallied after the British home and clothing retailer raised its profit forecast, while JD Sports Fashion Plc tumbled 20% in early trading after the British sportswear retailer slashed its profit forecast.

  • Eurozone S&P Global Eurozone Services PMI, Thursday

  • US initial jobless claims, ADP employment, Thursday

  • Eurozone CPI, PPI, Friday

  • US nonfarm payrolls/unemployment, factory orders, ISM services index, Friday

  • Richmond Fed President Tom Barkin — an FOMC voter in 2024 — speaks, Friday

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 rose 0.4% as of 11:06 a.m. London time

  • S&P 500 futures rose 0.1%

  • Nasdaq 100 futures rose 0.2%

  • Futures on the Dow Jones Industrial Average rose 0.1%

  • The MSCI Asia Pacific Index was little changed

  • The MSCI Emerging Markets Index rose 0.2%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro rose 0.3% to $1.0955

  • The Japanese yen fell 0.6% to 144.22 per dollar

  • The offshore yuan was little changed at 7.1604 per dollar

  • The British pound rose 0.3% to $1.2701

Cryptocurrencies

  • Bitcoin rose 0.5% to $43,154.2

  • Ether was little changed at $2,226.98

Bonds

  • The yield on 10-year Treasuries advanced four basis points to 3.95%

  • Germany’s 10-year yield advanced six basis points to 2.08%

  • Britain’s 10-year yield advanced five basis points to 3.69%

Commodities

  • Brent crude rose 0.8% to $78.88 a barrel

  • Spot gold rose 0.3% to $2,047.71 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Julien Ponthus and Sujata Rao.

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©2024 Bloomberg L.P.



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