(Bloomberg) — U.S. Treasuries continued to fall and the dollar rose as Federal Reserve Chairman Jerome Powell dampened hopes for lower interest rates.
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“The danger of acting too soon is that the job is not yet done,” Powell said in an interview on CBS’ 60 Minutes on Sunday. The yield on the US 10-year bond rose 7 basis points to 4.09%, and the yield on bonds from Australia to Germany also rose. European stocks rose slightly, but US stock futures fell.
The fall in Treasuries sent ripples through bond markets, pushing down government debt from Australia to Germany. The dollar rose against major peers. European stocks rose slightly, while US stock futures fell.
Powell’s comments highlighted how policymakers are resisting expectations that interest rates will fall in early 2024. The latest jobs data showed a surge in hiring activity, further raising concerns that more efforts will be needed to keep interest rates down. inflation.
Profits were the focus of European trading, with UniCredit SpA soaring 7%, beating profit expectations.
In Asia, Chinese stocks were again in volatile trading as investors assessed policymakers’ latest promises to stabilize struggling stock markets. Former US President Donald Trump has hinted in new hawkish remarks that he could impose tariffs of more than 60% on Chinese goods if elected. The benchmark CSI 300 index swung between a 2.1% decline and a 1.7% gain.
“It remains to be seen whether today is the bottom for Chinese stocks, but it feels like a bottom has been reached, indicating that policymakers don’t want them to fall any further,” said strategist David Chao. That’s for sure,” he said. At Invesco Asset Management in Singapore.
This week’s main events:
Eurozone S&P Global Services PMI, PPI, Monday
Australian interest rate decision Tuesday
Eurozone retail sales Tuesday
Order from German factory, Tuesday
Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker speak on Tuesday
Bank of England Deputy Governor Sarah Breeden speaks on Wednesday
Fed President Adriana Kugler and Richmond Fed President Tom Barkin speak on Wednesday
China PPI, CPI, Thursday
pakistan general election thursday
ECB Chief Economist Philippe Lane and ECB Governing Council Member Pierre Wunche speak on Thursday
European Central Bank releases economic update on Thursday
U.S. new unemployment claims, Thursday
U.S. Treasury Secretary Janet Yellen speaks at a Senate Banking Committee hearing Thursday
Reserve Bank of Australia Governor Michelle Bullock will testify to Parliament on Friday.
China’s comprehensive lending, money supply, new yuan lending, Friday
German Consumer Price Index, Friday
The main movements in the market are:
stock
Stoxx Europe 600 little changed as of 9:09 a.m. London time
S&P 500 futures fell 0.2%
Nasdaq 100 futures fell 0.1%
Dow Jones Industrial Average futures fell 0.2%.
MSCI Asia Pacific Index falls 0.2%
MSCI Emerging Markets Index falls 0.3%
currency
The Bloomberg Dollar Spot Index rose 0.2%, its highest since Dec. 11.
The euro fell 0.2% to $1.0771.
The Japanese yen was almost unchanged at 148.39 yen to the dollar.
The offshore yuan was little changed at 7.2188 yuan to the dollar.
The British pound was almost unchanged at $1.2626.
cryptocurrency
Bitcoin rises 0.5% to $42,969.90
Ether rose 0.8% to $2,317.45
bond
The 10-year Treasury yield rose 6 basis points to 4.08%.
Germany’s 10-year bond yield rose 3 basis points to 2.27%.
UK 10-year bond yields rose 4 basis points to 3.96%.
merchandise
Brent crude oil remains largely unchanged
Spot gold fell 0.8%, surpassing its last loss since January 17.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson, Ishika Mookerjee, and Tassia Sipahutar.
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