(Bloomberg) – U.S. stock futures falter, struggling to hold onto gains that pushed the S&P 500 to its best daily gain in three weeks, as investors gauge whether the world’s largest economy can can overcome the worst-case recession scenarios.
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Futures on the S&P 500 and Nasdaq 100 index were flat after the fundamentals rose 1.5% on Wednesday on data showing US consumer confidence at an eight-month high and inflation expectations continue to fall. The figures come a day after sportswear maker Nike and delivery company Fedex, often seen as a focal point for the economy, released the highest estimates forecast, showing consumers Still buying discretionary items.
However, the mood was eased by memory chip maker Micron, whose dismal outlook knocked its shares off in premarket trading in the United States and weighed on other chip companies. European semiconductor shares also fell, wiping out previous gains on the Stoxx 600 index, although it is still set to break a two-week losing streak.
According to the SEB, the S&P 500’s big drop this month contrasts with the average 1.5% December gain since 1950, adding that recent sell-offs have given global investors plenty of ” dry powder” to buy shares.
“The resilience of the US economy continues to impress and is likely a small step towards a soft landing,” analysts at the Stockholm-based firm told clients. On the other hand, wars, inflation and tightening monetary policy are putting pressure on large orders and corporate profits, they added.
Read more: Stock bulls hunt for their worst rare December breakout since ’18
Meanwhile, bond traders continued to test the Bank of Japan’s new 0.5% yield cap, and the central bank conducted an additional debt purchase, pushing yields down around 0.385 %. However, 10-year borrowing costs are on track for their biggest weekly rise since 2015.
Yields on Treasuries and euro zone bonds fell, but concerns remain that Japanese investors could now be persuaded to take home some of the trillions of dollars they have accumulated. reserves in foreign stocks and bonds. That could add to global borrowing costs and drag on already cooling economic growth.
In the currency markets, the yen continued to appreciate while the dollar slid against a group of pars currencies, heading for a third month of declines.
Jefferies analyst Brad Bechtel noted that an incremental shift in capital flows and interest rates is key for the greenback, adding, “The Fed is nearing completion of a rate hike, that could mean which means that real interest rates in the US have finished rising and will adjust slightly, easing the pressure. of the dollar.”
Earlier in Asia, Japanese shares broke a three-day losing streak while Hong Kong shares gained nearly 3%. While a surge in Covid-19 cases in Shanghai and Beijing stoked concerns about economic growth, a fresh flurry of comments from Chinese regulators suggest impending support for the economy. and real estate developers.
Beijing also plans to cut quarantine requirements for foreign visitors in January, people familiar with the matter told Bloomberg.
Oil prices are poised to end an unusually volatile year modestly higher. West Texas Intermediate crude oil futures hold above $78 a barrel, extending their gains into a fourth day, benefiting from a draw in US inventories and rising consumer confidence. go up. Growth-sensitive copper prices also rose for a fourth straight day.
This week’s main events:
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US GDP, Initial Jobless Claims, US Conf. Table top index, fifth
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US consumer income, new home sales, US durable goods, PCE deflation, University of Michigan consumer sentiment, Friday
Some key moves in the market:
share
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S&P 500 futures were little changed at 5:25 a.m. New York time
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Nasdaq 100 futures are little changed
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Futures on the Dow Jones Industrial Average were little changed
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Stoxx Europe 600 little changed
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MSCI World Index up 0.2%
currency
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Bloomberg Dollar Spot Index drops 0.2%
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The euro rose 0.3% to $1.0641
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British Pound was little changed at $1.2087
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Japanese yen rose 0.3% to 132.03 per dollar
electronic money
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Bitcoin up 0.3% to $16,843.86
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Ether rose 0.6% to $1,218.51
bonds
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Yields on 10-year Treasuries fell two basis points to 3.64%
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German 10-year yield was little changed at 2.32%
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UK 10-year bond yields rise two basis points to 3.59%
Goods
This story was made possible with the help of Bloomberg Automation.
–With support from Ishika Mookerjee and Mark Cranfield.
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