(Bloomberg) — European stocks fell, marking a global retreat after Federal Reserve Chairman Jerome Powell warned that interest rates may have to rise further. The pound swung between gains and losses as UK economic data showed economic stagnation.
Most Read Articles on Bloomberg
The Stoxx 600 fell 0.6%, while Nasdaq 100 futures were little changed. U.S. Treasury prices were stable, with West Texas Intermediate trading around $76 a barrel. Diageo shares fell more than 8% after the drinks maker unexpectedly cut its outlook, and Richemont pulled out after the Swiss group posted an unexpected fall in profits.
Powell said officials would tread carefully but would not hesitate to tighten policy further if necessary to curb inflation. A slump in the 30-year bond auction also added to the decline in U.S. Treasuries, reigniting concerns that investors will struggle to absorb the expansion in new bond supply.
Separately, the U.S. arm of Industrial and Commercial Bank of China suffered a cyberattack, leaving it unable to clear a wide range of U.S. government bond trades as the organization responsible for clearing trades was quickly disconnected from the affected systems.
In Europe, ECB President Christine Lagarde is scheduled to participate in a fireside chat, and investors are awaiting the University of Michigan’s consumer sentiment survey in the US. Dallas Fed President Rory Logan and Atlanta Fed President Rafael Bostic are also expected to comment.
Elsewhere, Allianz reported third-quarter operating profit that exceeded analysts’ average expectations. SoftBank Group’s stock price fell after its flagship Vision Fund posted new losses due to foreign exchange losses and lower valuations of WeWork and other portfolio companies. Meta Platforms Inc. has signed a preliminary agreement with Tencent Holdings to sell virtual reality headsets in China, The Wall Street Journal reported.
This week’s main events:
ECB President Christine Lagarde joins fireside chat on Friday
University of Michigan Consumer Sentiment, Friday
Dallas Fed President Rory Logan and Atlanta Fed President Rafael Bostic speak on Friday
The main movements in the market are:
stock
As of 8:21 a.m. London time, the Stoxx European 600 was down 0.5%.
S&P 500 futures rose 0.2%
Nasdaq 100 futures little changed
Dow Jones Industrial Average futures rose 0.3%.
MSCI Asia Pacific Index falls 0.9%
MSCI Emerging Markets Index falls 0.9%
currency
The Bloomberg Dollar Spot Index fell 0.1%.
The euro was almost unchanged at $1.0677.
The Japanese yen was almost unchanged at 151.37 to the dollar.
The offshore yuan was almost unchanged at 7.3020 yuan to the dollar.
The British pound was almost unchanged at $1.2231.
cryptocurrency
Bitcoin fell 0.3% to $36,434.85.
Ether rose 1.7% to $2,094.35
bond
The 10-year Treasury yield fell 2 basis points to 4.60%.
Germany’s 10-year bond yield rose 4 basis points to 2.69%.
The UK 10-year bond yield rose 4 basis points to 4.31%.
merchandise
Brent crude rose 0.4% to $80.31 per barrel.
Spot gold fell 0.1% to $1,956.46 an ounce.
This article was produced in partnership with Bloomberg Automation.
Most Read Articles on Bloomberg Businessweek
©2023 Bloomberg LP
