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US futures are climbing on low-rate bets; Dollar decline: market envelopment



(Bloomberg) – US equity futures have climbed alongside Asian stocks, while European stocks have eroded their lead as investors weigh the latest signals from central banker interest rates. Treasury bills were stable and the dollar weakened slightly.

Contracts on major US indicators were won after the S & P 500 briefly surpassed 3,000 for the first time on Wednesday, indicating that Fed Chairman Jerome Powell is willing to cut rates, mentioning a slowdown in the global economy and trade problems. The Stoxx Europe 600 Index began its first five-day increase, led by energy companies, although it reached a record high for the session. Equities rose in most of Asia as the South Korean and Hong Kong markets outperformed and equities in China rose slightly.

Emerging market equities rose, while sterling continued its rebound after a two-year low.

This year's rebound between equities, bonds and credit took a new shock on Wednesday, thanks to remarks by Fed Chairman Powell, who persuaded investors that abatement rates are being lowered. at least a quarter in July. The minutes of the last meeting of the central bank raised expectations for lower borrowing costs. Traders will target the ECB's minutes and Powell's testimony before the Senate Banking Committee on Thursday for additional clues.

"Monetary policy has totally changed – a quantitative tightening is underway and we are returning to a mild form of quantitative easing or stable central bank balances," said Timothy Moe, chief strategist for Goldman's shares. for the Asia-Pacific region. Sachs. "It's very supportive of the actions."

Elsewhere, oil gains on reductions in crude oil production were prolonged before a potential hurricane in the Gulf of Mexico.

Here are some key events to come:

Powell testifies Thursday before the Senate Banking Committee. The minutes of the ECB are expected for Thursday. A key measure of US inflation – the basic index of consumer prices (expected on Thursday) – is expected to have increased by 0.2% in June compared with the previous month, the CPI plus broad should remain unchanged.US producer prices are due on Friday.

Here are the main movements on the markets:

stocks

S & P 500 index futures advanced 0.2% at 6:38 am New York time, the highest level ever. The Stoxx Europe 600 index rose less than 0.05%, the first increase of the week. The Shanghai Composite Index rose 0.1%. The MSCI Emerging Market index rose 0.7%, the largest increase in more than a week.

Coins

The Bloomberg Dollar Spot Index is down 0.2%, the lowest level of the week. The euro rose 0.2% to 1.1273 USD, the strongest of the week. The pound sterling is appreciated 0.4% at $ 1.2552, the strongest of the week after the biggest rise in three weeks The onshore yuan rose 0.1% to 6.867 per dollar, the strongest and most by one week. The Japanese yen rose 0.3% to 108.14 per dollar, the highest in a week.

Obligations

The 10-year Treasury yield rose by less than one basis point to 2.06%. The two-year Treasury yield fell two basis points to 1.81%, the lowest in a week. Japan's yield fell two basis points to -0.135%, the largest decrease in three weeks.

Basic products

West Texas Intermediate crude rose 0.5% to $ 60.74 per barrel, reaching its highest level in seven weeks on a sixth consecutive advance. Iron ore fell 1.2% to $ 113.21 a tonne. Gold rose 0.2% to $ 1,421.58 an ounce, the highest level since weeks. Soybeans fell 0.1% to $ 9.12 a bushel.

(An earlier version corrected some incorrect price chips.)

– With the help of Ruth Carson, Chester Yung, Cormac Mullen and Gregor Stuart Hunter.

To contact the reporter about this story: Laura Curtis in London at lcurtis7@bloomberg.net

To contact the makers of this story: Samuel Potter at spotter33@bloomberg.net, Yakob Peterseil

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