US futures rise ahead of inflation Data lands: Markets wrap

(Bloomberg) — U.S. equity futures rose along with European shares as investors awaited U.S. inflation data that could shed light on the Federal Reserve’s next policy move.

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Contracts on the S&P 500 added 0.2% in muted trading ahead of the fresh volatility-inducing report. Two-year Treasury yields rose, above 4%, while the dollar was broadly lower.

US core inflation is expected to ease, with key forecasts easing on a monthly and annual basis, supporting market expectations that the central bank will deliver one more rate hike before pausing and returning to easy policy in the second half of the year. .

It’s a delicate balancing act for central bank officials juggling the need to control hyperinflation and stabilize ailing banks.

“Markets have recently taken the view that the central bank needs to ensure stability in the financial system, meaning easing rate hikes that could topple the economy,” said Russ Mold, investment director at AJ Bell. The update is even more important for the central bank.”

The message from central bank officials has been mixed. Chicago Fed President Austin Goolsbee on Tuesday argued the central bank should exercise “prudence and patience,” while New York Fed President John Williams said officials have more work to do to tackle inflation.

Swap contracts are priced at three-in-four odds of another quarter-point Fed hike next month. Traders forecast US rates to peak at 5%, with policymakers cutting at least 50 basis points by the end of the year.

Also Read: US Preview: Soft March CPI Print To Fuel Fed Rate-Cut Race

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The dollar weakened against its group of 10, while the euro advanced for a second day. The British pound was the only major currency to fall against the greenback, extending its slide for a fifth straight day.

Elsewhere, bitcoin hit $30,000 on Tuesday, hitting its highest level in 10 months. Oil was flat as traders tracked supply constraints and gold rose.

The Stoxx Europe 600 index rose 0.3%, led by media and utilities stocks.

Shares of Bed Bath & Beyond rose as much as 5.2% in U.S. premarket trading, driven by the retailer’s move to sell stock and raise cash.

Highlights of this week:

  • Canada rate decision, Wednesday

  • US FOMC Minutes, CPI, Wednesday

  • Richmond Fed’s Thomas Parkin speaks Wednesday

  • China Trade, Thursday

  • US PPI, Initial Jobless Claims, Thursday

  • US Retail Sales, Merchandise Inventory, Industrial Production, University of Michigan Consumer Sentiment, Friday

  • Major US banks JP Morgan Chase, Wells Fargo and Citigroup report earnings on Friday

Some key movements in the markets:

Shares

  • S&P 500 futures were up 0.2% at 6:44 a.m. New York time

  • Nasdaq 100 futures were little changed

  • Futures for the Dow Jones industrial average rose 0.3%

  • The Stoxx Europe 600 rose 0.3%

  • The MSCI world index rose 0.1%

Coins

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was up 0.1% at $1.0928

  • The British pound was little changed at $1.2417

  • The Japanese yen was little changed at 133.66 per dollar

Cryptocurrencies

  • Bitcoin fell 0.5% to $30,029.43

  • Ether fell 1.1% to $1,873.56

Bonds

  • The yield on 10-year Treasuries rose three basis points to 3.45%

  • Germany’s 10-year yield rose two basis points to 2.33%

  • Britain’s 10-year yield was little changed at 3.54%

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goods

  • West Texas Intermediate crude was little changed

  • Gold futures were up 0.2% at $2,023.60 an ounce

This story was produced with the help of Bloomberg Automation.

–With help from Tasia Sibahuder.

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