(Bloomberg) – U.S. stock futures showed signs of a partial rebound on Wall Street as investors reset their expectations for when the Federal Reserve will cut interest rates and take stock of the big gains. .
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The S&P 500 rose 0.3% following Wednesday's decline, the index's biggest decline in four months. New York Community Bancorp rose 3.9% in pre-market trading after a record sell-off. Concerns about office market loans also resonated in Tokyo, where Aozora Bank fell 21% on losses related to U.S. commercial real estate.
Europe's Stoxx 600 index fluctuated on a busy day on the reporting calendar. Adidas AG fell after a weaker-than-expected profit outlook. Deutsche Bank rebounded by announcing share buybacks and a target to increase revenue.
Apple Inc., Amazon.com Inc. and Meta Platforms Inc. have all released results that have put U.S. mega-cap revenues back in the spotlight.
Chairman Jerome Powell said after Wednesday's decision that he thought it was unlikely the Fed would cut rates in March. In a sign that officials were in no hurry to cut rates, the central bank said it did not think it would be appropriate to lower the target range until there was greater confidence that inflation was on a sustained path towards 2%. He also said that The Bank of England's interest rate announcement is also expected soon.
“Markets have been proactive in recent months,” said Chief Investment's Justin Onukwusi. “As interest rate cuts start to be priced in and central banks are increasingly saying they want to cut rates, we're looking at a breather.” “We're going to see similar rhetoric from the BOE in that too many interest rate cuts are priced in,” said a director at asset management firm St. James's Place Management S.V.S. Ltd.
The BoE is expected to leave its key lending rate unchanged at a 16-year high late on Thursday while offering a positive outlook for the UK economy, potentially lowering its inflation outlook for this year and paving the way for policy easing. There is.
The Riksbank left interest rates unchanged and said it could reduce borrowing costs as early as the first half of this year, mainly through a tightening campaign. The Swedish krona depreciated as a result of this decision.
U.S. Treasuries pared some of Wednesday's gains after Chairman Powell's comments and renewed concerns about regional financial institutions. Indicators of dollar strength remained stable, with the yen being the only G10 country to appreciate against the dollar.
Oil prices rebounded from their biggest drop in three weeks on Wednesday as investors weighed the risk of U.S. retaliation over a deadly attack in Jordan against signs of solid U.S. supplies.
Corporate highlights
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Deutsche Bank plans to cut 3,500 jobs over the next few years as Chief Executive Officer Christian Sewing seeks to meet pledges to increase profitability and return more money to shareholders. ing.
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Shell maintained its share buyback pace as strong performance from Gastrader offset the impact of lower commodity prices in the fourth quarter.
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Glencore has lowered its cobalt production target for this year due to weak market conditions, causing miners to stockpile the metal that is difficult to sell.
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ING Group warned that passing on higher interest rates to depositors would weaken its main source of income.
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BNP Paribas lowered its 2025 performance target due to factors including the end of reserve payments by the European Central Bank, and posted a drop in fourth-quarter profit due in part to legal provisions.
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Julius Baer Group announced it would exit the private debt business after canceling all loans to bankrupt Cigna, and CEO Philip Rickenbacker resigned in the wake of the scandal. admitted.
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Roche Holding AG expects a slow recovery in sales and profits this year as it emerges from a difficult 2023 and a series of research setbacks.
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BT Group's third-quarter profits rose as expected, providing a boost to incoming chief executive Alison Kirkby as she seeks to establish stable growth after years of turmoil.
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Adidas AG said this year's profits will be hit by unfavorable currency fluctuations, but it expects to offset some of the damage by continuing to sell inventory left over from its defunct Yeezy partnership with rapper Ye. He said he plans to reduce the amount.
This week's main events include:
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Eurozone S&P World Manufacturing PMI, CPI, Unemployment Rate, Thursday
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US productivity, construction spending, ISM manufacturing, new unemployment claims, Thursday
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Apple, Amazon, Meta Earnings, Thursday
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Bank of England interest rate decision Thursday
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US employment statistics, University of Michigan consumer sentiment, factory orders, Friday
The main movements in the market are:
stock
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As of 5:45 a.m. New York time, S&P 500 futures were up 0.3%.
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Nasdaq 100 futures rose 0.5%
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Dow Jones Industrial Average futures little changed
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Stoxx European 600 falls 0.2%
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MSCI World Index falls 0.2%
currency
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Bloomberg Dollar Spot Index little changed
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The euro fell 0.2% to $1.0798.
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The British pound fell 0.4% to $1.2638.
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The Japanese yen remained almost unchanged at 146.80 yen to the dollar.
cryptocurrency
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Bitcoin fell 0.7% to $42,165.01.
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Ether fell 0.5% to $2,266.34.
bond
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The 10-year Treasury yield rose 4 basis points to 3.95%.
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Germany's 10-year bond yield rose 5 basis points to 2.22%.
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The UK 10-year bond yield rose 1 basis point to 3.81%.
merchandise
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West Texas Intermediate crude rose 1% to $76.64 per barrel.
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Spot gold fell 0.2% to $2,035.31 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Pearl Liu.
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