(Bloomberg) — Global stocks rose as hopes for solid U.S. economic growth and solid corporate earnings pointed to new record highs on Wall Street.
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Nasdaq 100 index futures rose 0.6%, while S&P 500 rose 0.4%. Micron Technology and PayPal Holdings are among the technology companies that have made a splash in U.S. pre-market trading. In the bond market, Italy's yield premium over Germany narrowed to its lowest level in nearly two years.
The U.S. stock market has weathered a rocky start to the year on confidence that the Federal Reserve will soon cut interest rates and that the artificial intelligence boom is here to stay. Meanwhile, earnings season continues, with companies like Netflix, Tesla, and Intel scheduled to report earnings this week.
“The rally we're seeing is based on a soft-landing scenario that's priced in,” said Charles Diebel, head of fixed income at Mediolanum International Fund, a view that central bankers are likely to take quick notice of. It added that it helped overcome the market's disappointment over the rejection of the Interest rate cut.
“If the economy is doing well, why sell stocks?” And the counterfactual for the stock market is that if conditions worsen, interest rates will be cut. ”
Only 11% of the S&P 500's market capitalization has reported earnings so far this fiscal year, but there are encouraging signs. About 85% of companies that reported beat profit expectations, according to data compiled by Bloomberg.
Meanwhile, the decline in Chinese stocks intensified. The Hang Seng China Enterprise Stock Index fell 2.4%, close to its 2005 low. China's commercial lenders kept their benchmark lending rates unchanged on Monday, disappointing investors who had hoped for more aggressive stimulus.
In Europe, shares in Swedish online gambling company Kindred Group Plc rose 19% following a $2.7 billion offer from La Française des Jeux SA, while Worldline SA's share price rose 19% following a $2.7 billion offer from Credit Agricole SA. The increase was due to the acquisition of a 7% stake in an effort to stabilize a struggling payment partner.
Investor attention now turns to meetings of the Bank of Japan on Tuesday and the European Central Bank on Thursday, with both institutions expected to leave policy settings unchanged. Thursday's US fourth-quarter GDP report could provide clues as to the timing of the Fed's first interest rate cut.
Oil prices stabilized as OPEC member Libya resumed production at its biggest oil field, boosting global supplies and helping to counter concerns that Red Sea shipping tensions could disrupt energy supplies. did.
This week's main events:
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US Conference Board Leading Index, Monday
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Bank of Japan interest rate decision, Tuesday
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Eurozone consumer confidence, Tuesday
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Netflix Inc. plans to report earnings.Streaming services set for strong performance heading into 2023 on Tuesday
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Japan trade, Wednesday
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Eurozone S&P Global Services and Manufacturing PMI, Wednesday
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UK S&P Global/CIPS Manufacturing PMI, Wednesday
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US S&P Global Services and Manufacturing PMI, Wednesday
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Tesla Inc. and International Business Machines Inc. (IBM) plan to report financial results on Wednesday.
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European Central Bank interest rate decision Thursday
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Germany IFO Business Environment Thursday
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US GDP, new unemployment claims, durable goods, wholesale inventories, new home sales, Thursday
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LVMH, Northrop Grumman and SK Hynix report financial results on Thursday
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Japan Tokyo CPI, Friday
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Bank of Japan issues minutes of policy meeting on Friday
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US Personal Income and Expenditures, Friday
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Holiday rush begins in China ahead of next month's Lunar New Year Friday
The main movements in the market are:
stock
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As of 1:28 p.m. London time, the Stoxx European 600 was up 0.5%.
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S&P 500 futures rose 0.4%
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Nasdaq 100 futures rose 0.7%
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Dow Jones Industrial Average futures rose 0.2%.
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MSCI Asia Pacific Index rose 0.2%
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MSCI Emerging Markets Index falls 0.5%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0888.
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The Japanese yen rose 0.2% to 147.78 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2029 yuan to the dollar.
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Sterling rose 0.2% to $1.2725.
cryptocurrency
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Bitcoin fell 1.7% to $41,054.2.
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Ether fell 3.2% to $2,393.15.
bond
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The 10-year Treasury yield fell 4 basis points to 4.08%.
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German 10-year bond yields fell 6 basis points to 2.28%.
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UK 10-year bond yields fell 4 basis points to 3.89%.
merchandise
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Brent crude rose 0.3% to $78.80 per barrel.
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Spot gold fell 0.2% to $2,025.68 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Garfield Reynolds, Nicholas Reynolds, Jason Scott, and Tasia Shipakhtar.
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