(Bloomberg) — U.S. stock index futures fell and Treasury yields rose ahead of the release of economic data that will shape the Federal Reserve’s policy direction.
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Reports on economic growth and weekly jobless claims are the focus of traders on Thursday, ahead of tomorrow’s release of a key inflation measure, after Federal Reserve Governor Michelle Bowman yesterday softened market expectations of a rate cut. The dollar benchmark remained near an eight-month high.
“It’s all down to the Fed. High interest rates for a long time are keeping short-term rates very high, attracting capital into the U.S. and keeping the dollar strong,” said Andrew Brenner, head of international fixed income at NatAlliance Securities.
Micron Technology Inc.’s disappointing sales outlook highlighted the risks of relying on artificial intelligence chipmakers for stock gains. The AI ​​chipmaker’s shares fell sharply in premarket trading, dragging down shares of other big tech companies such as Nvidia Corp.
European stock indexes were little changed, with traders holding out ahead of French elections on Sunday. Fashion retailer Hennes & Mauritz AB fell more than 14 percent after profits missed expectations. GlaxoSmithKline slumped after U.S. health officials dealt its blockbuster respiratory syncytial virus vaccine a new regulatory blow. Gucci parent Kering rose after two rating upgrades by Bank of America.
Stocks in Japan, Hong Kong, South Korea and China all fell, with the MSCI Asia Pacific Index falling for the first time in three days. The yen pared Wednesday’s losses to 160.87 to the dollar, its lowest since 1986.
MSCI Inc.’s main gauge of Chinese stocks is heading for a technical correction as traders struggle to find a catalyst ahead of a China summit scheduled for July. The MSCI China Index fell as much as 2% on Thursday and is down about 10% from its May 20 high.
In commodity markets, gold stabilized after two days of declines, while crude oil traded in a narrow range ahead of the next set of U.S. economic data. Iron ore held on to a second day of gains on signs of a recovery in Chinese demand after real estate stimulus measures were implemented in China’s biggest cities.
Major events this week:
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China industrial profits Thursday
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Eurozone economic confidence, consumer confidence on Thursday
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U.S. durable goods, jobless claims, GDP on Thursday
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Nike reports earnings on Thursday
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Japan Tokyo Consumer Price Index, unemployment rate, industrial production, Friday
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US PCE Inflation, Spending and Income, University of Michigan Consumer Confidence, Friday
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Fed President Thomas Barkin to speak on Friday
Some of the key market developments:
stock
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The Stoxx Europe 600 index was little changed as of 9:16 a.m. London time.
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S&P 500 futures fell 0.2%
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Nasdaq 100 futures fell 0.3%
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Dow Jones Industrial Average futures fell 0.2%.
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MSCI Asia Pacific Index fell 0.5%
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The MSCI Emerging Markets Index fell 0.5%.
currency
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The Bloomberg Dollar Spot Index fell 0.1%.
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The euro was little changed at 1.0687 dollars
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The Japanese yen rose 0.1% to 160.58 yen to the dollar.
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The offshore yuan was little changed at 7.2980 to the dollar.
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The British pound was little changed at 1.2631 to the dollar
Cryptocurrency
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Bitcoin fell 0.3% to $60,764.93.
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Ether fell 0.5% to $3,373.71.
Bonds
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The yield on the 10-year Treasury note rose 1 basis point to 4.34%.
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German 10-year government bond yields rose 3 basis points to 2.48%.
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UK 10-year government bond yields rose 3 basis points to 4.16%.
merchandise
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Brent crude rose 0.4% to $85.63 a barrel.
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Spot gold rose 0.2% to $2,303.93 an ounce.
This story was produced with assistance from Bloomberg Automation.
–With assistance from Jan-Patrick Barnert, Richard Henderson, and Divya Patil.
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