(Bloomberg) — The S&P 500 index hit a record high on Friday as European stocks and U.S. futures rose and global stocks continued to rise.
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Europe’s Stoxx 600 index rose 0.8% in early trading on Monday, led by banks, real estate and tech stocks. Tech stocks led gains in U.S. futures after the S&P 500 rose above 4,800 last week amid optimism about an expected Federal Reserve rate cut and an artificial intelligence boom. Chinese stocks bucked the trend as pessimism about China’s stalled economic recovery compounded losses.
The S&P 500 index has risen about 35% since its low in October 2022, topping its previous closing high of 4,796.56 on Friday. The index was the last of the three major U.S. stock benchmarks to end at a record high.
“We’re heading into an environment where we think the economic slowdown is coming to a soft landing, but at the same time there’s talk of rate cuts,” said Jun Bei Liu, a fund manager at Tribeca Investment Partners in Sydney. Ta. “When you put all this together, it looks pretty positive for the stock market.”
In M&A news on Monday, Kin Dread Group Inc. soared 19%.
The dollar and US Treasuries were strong. Benchmark notes rose on Friday after the University of Michigan’s “Fed-friendly” survey showed a mix of high consumer confidence and low inflation expectations.
Investor attention will turn to the Bank of Japan later this week, with the overwhelming expectation that the bank will leave policy settings unchanged on Tuesday when it announces the results of its meeting. On Thursday, the first estimates of US fourth-quarter GDP and the European Central Bank’s interest rate decisions will be released.
In Asian trading on Monday, the region’s benchmark stock indexes erased earlier gains as the Hang Seng Index fell 3% and mainland China’s main indexes also fell. China’s commercial lenders on Monday kept their benchmark lending rates unchanged, in line with the People’s Bank of China’s decision last week to refrain from cutting borrowing costs.
Vasu Menon, managing director of investment strategy at Oversea-Chinese Bank in Singapore, said the current low valuations of Chinese stocks are not enough to encourage investors to jump back into the market. “We suspect China will provide more stimulus, but the question is whether it will be large enough to placate markets,” he said of Chinese policymakers.
Oil prices fell after OPEC member Libya resumed production at its biggest oil field, boosting global supplies and eclipsing concerns about tensions in the Red Sea, which are expected to continue disrupting shipping.
This week’s main events:
US Conference Board Leading Index, Monday
Bank of Japan interest rate decision, Tuesday
Eurozone consumer confidence, Tuesday
Netflix Inc. plans to report earnings.Streaming services set for strong performance heading into 2023 on Tuesday
Japan trade, Wednesday
Eurozone S&P Global Services and Manufacturing PMI, Wednesday
UK S&P Global/CIPS Manufacturing PMI, Wednesday
US S&P Global Services and Manufacturing PMI, Wednesday
Tesla Inc. and International Business Machines Inc. (IBM) plan to report financial results on Wednesday.
European Central Bank interest rate decision Thursday
Germany IFO Business Environment Thursday
US GDP, new unemployment claims, durable goods, wholesale inventories, new home sales, Thursday
LVMH, Northrop Grumman and SK Hynix report financial results on Thursday
Japan Tokyo CPI, Friday
Bank of Japan issues minutes of policy meeting on Friday
US Personal Income and Expenditures, Friday
Holiday rush begins in China ahead of next month’s Lunar New Year Friday
The main movements in the market are:
stock
As of 8:17 a.m. London time, the Stoxx Europe 600 was up 0.8%.
S&P 500 futures rose 0.3%
Nasdaq 100 futures rose 0.6%
Dow Jones Industrial Average futures rose 0.2%.
MSCI Asia Pacific Index rose 0.1%
MSCI Emerging Markets Index falls 0.5%
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0893.
The Japanese yen was almost unchanged at 148.08 yen to the dollar.
The offshore yuan was little changed at 7.2035 yuan to the dollar.
The British pound was almost unchanged at $1.2696.
cryptocurrency
Bitcoin fell 2% to $40,937.25
Ether fell 2.5% to $2,410.73.
bond
The 10-year government bond yield was almost unchanged at 4.12%.
Germany’s 10-year bond yield fell 4 basis points to 2.30%.
UK 10-year bond yields fell 4 basis points to 3.89%.
merchandise
Brent crude oil fell 0.5% to $78.20 per barrel.
Spot gold fell 0.3% to $2,022.99 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Garfield Reynolds, Nicholas Reynolds, and Jason Scott.
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