(Bloomberg) — Stocks set a new record as global stocks headed up for the second time in a quarter. U.S. Treasuries fell as investors awaited U.S. jobs data.
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Europe's Stoxx 600 index rose 0.3% to a record high, while U.S. futures markets signaled a subdued start for Wall Street after the S&P 500 index closed at a record high. Investors will be keeping an eye on the number of new U.S. jobless claims to be released later in the day.
“Optimism is growing, especially as central banks have expressed reassurance about future interest rate cuts,” said Arnaud Caillat, deputy CEO of Cholet-Dupont Asset Management. Stated. “Investors have no reason to sell.”
MSCI's global stock index is on track to rise more than 7% this quarter, hovering near record highs, supported by gains in the U.S., Japan and artificial intelligence sectors.
Movement was relatively muted as Thursday was the last trading day of the quarter in some markets, potentially leading many institutional investors to rebalance their portfolios.
Among individual stocks, Jingdong Sports Fashion posted a sharp increase despite leaving its profit forecast unchanged. Soitec plunged after the French semiconductor maker's disappointing earnings outlook.
U.S. Treasury yields rose after Federal Reserve President Christopher Waller said there was no need to rush to cut interest rates, saying he wanted to see “improvement in inflation statistics for at least a few months” before cutting rates. Indicated. Two-year bond yields, which are more sensitive to policy trends, rose by more than 4 basis points. The dollar rose against the Group of Ten (G10) countries.
“We believe current market expectations for Fed easing still need to be adjusted,” Brown Brothers Harriman strategists Win Hsin and Elias Haddad said in a note. “If that happens, the dollar should rise further.”
The yen strengthened against the dollar after hitting its lowest level in about 34 years on Wednesday. Japan's currency fell to 151.97, above the level at which policymakers intervened during October 2022.
“Treading water”
Still, investors were “basically stuck” until the Fed's recommended measure of inflation, the Core Personal Consumption Expenditure Price Index, was released on Friday, when markets close.
“At the end of the day, no one is going to make a bold move for a high-impact data release on a holiday,” said Kyle Rodda, senior market analyst at Capital.com. Stocks will likely fall given concerns that price increases could accelerate, if not rise again. ”
Meanwhile, many expressed concern that positioning has become tighter and stocks are more exposed to short-term profit-taking after the S&P 500 index has soared about 25% since late October. JPMorgan Chase & Co.'s Dubravko Lakos Bujas warned clients on Wednesday that they could be “stuck in the wrong direction” if momentum trades eventually stall.
In commodities, crude oil prices rose on expectations that supply cuts by the Organization of the Petroleum Exporting Countries (OPEC+) would tighten global markets, and were on track for a steady rise on a quarterly basis. Gold prices stabilized on Thursday after three days of gains.
This week's main events:
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UK GDP revised figures Thursday
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University of Michigan Consumer Sentiment, Number of New Unemployment Insurance Claims, GDP, Thursday
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Japan's unemployment rate, Tokyo CPI, industrial production, retail sales, Friday
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US Personal Income and Expenditures, PCE Deflator, Friday
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Good Friday. Exchanges in the United States and many other countries were closed due to public holidays. The US federal government is open.
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San Francisco Fed President Mary Daly speaks on Friday
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Federal Reserve Chairman Jerome Powell speaks on Friday
stock
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As of 5:37 a.m. New York time, S&P 500 futures were down 0.1%.
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Nasdaq 100 futures fell 0.2%
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Dow Jones Industrial Average futures little changed
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Stoxx European 600 rose 0.3%
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MSCI World Index little changed
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S&P 500 futures fell 0.1%
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Nasdaq 100 futures fell 0.2%
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MSCI Asia Pacific Index falls 0.5%
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MSCI Emerging Markets Index rose 0.2%
currency
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Bloomberg Dollar Spot Index rose 0.3%
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The euro fell 0.4% to $1.0782.
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The British pound fell 0.4% to $1.2593.
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The Japanese yen was almost unchanged at 151.42 to the dollar.
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The offshore yuan fell 0.1% to 7.2637 yuan to the dollar.
cryptocurrency
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Bitcoin rose 2.6% to $70,627.7
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Ether rose 1.9% to $3,577.7
bond
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The 10-year Treasury yield rose 3 basis points to 4.22%.
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Germany's 10-year bond yield rose 2 basis points to 2.31%.
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The UK 10-year bond yield rose 3 basis points to 3.96%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Michael Msika and Julien Ponthus.
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