(Bloomberg) — European stocks rose after a euro zone policymaker suggested two more interest rate cuts could be on the cards this year.
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The Stoxx Europe 600 index rose about 0.5%, led by the technology sector after a rebound in shares of Nvidia Corp. helped boost the S&P 500 on Tuesday. Basic resources outperformed on higher crude oil and iron ore prices.
Among individual movers in Europe, Deutsche Post AG added more than 3% after giant profit forecasts from U.S. peer FedEx Corp. Danske Bank A/S rose more than 2% after raising its outlook for the full year.
With no major data coming out of the euro zone on Wednesday, traders are looking to policy signals. Investors’ expectations that the European Central Bank will ease monetary policy twice this year are reasonable, according to Governing Council member Olli Rehn, who added that policymakers are unlikely to overly curb economic activity.
U.S. stock futures rose, suggesting Wall Street’s tech-fueled rally – fueled Tuesday by Nvidia’s 7% jump – still has momentum. The giant microchip maker rose nearly 3% in U.S. premarket trading, extending its rebound from Monday’s $430 billion rout.
“Nvidia’s volatility has weighed on market sentiment, but we believe the structural case for artificial intelligence remains intact,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “We also maintain a positive outlook on broader equities amid strong fundamentals.”
The 10-year Treasury yield rose and the dollar gauge was steady. The U.S. will sell $70 billion of five-year Treasuries later Wednesday, following a robust auction of two-year Treasuries yesterday.
In Asia, stock indices in Japan and Hong Kong rose, while those in Australia fell. The Australian dollar and bond yields climbed after inflation figures suggested price pressures remained stubbornly strong and strengthened the case for the central bank to resume a rate hike. ‘interest.
The yen held just below the psychologically important level of 160 per dollar, a break from which would likely heighten intervention concerns.
China’s 10-year bond yield fell to its lowest level in more than two decades as investors flocked to fixed income on concerns about a slowing economy and expectations of further measures recovery.
In the commodities sector, oil rose ahead of the release of a US government report on crude inventories and fuel demand, following the release of mixed sector data. Iron ore rose for a second day. Copper fell to its lowest level in more than two months as prices faced sustained pressure from unusually weak Chinese demand. Gold has changed little.
Key events this week:
New home sales in the United States, Wednesday
Chinese industrial profits, Thursday
Eurozone Economic Confidence, Consumer Confidence, Thursday
US Durable Goods, Initial Jobless Claims, GDP, Thursday
Nike reports results on Thursday
Japan Tokyo CPI, unemployment, industrial production, Friday
Inflation, U.S. Business Spending and Income, University of Michigan Consumer Sentiment, Friday
Fed’s Thomas Barkin Speaks Friday
Some of the main market movements:
Actions
The Stoxx Europe 600 rose 0.5% at 9:36 a.m. London time
S&P 500 futures rose 0.2%
Nasdaq 100 futures rose 0.4%
Dow Jones Industrial Average futures little changed
The MSCI Asia-Pacific index rose 0.3%
The MSCI Emerging Markets Index rose 0.2%
Currencies
The Bloomberg Dollar Spot Index rose 0.1%
The euro fell 0.2% to $1.0695
The Japanese yen fell 0.1% to 159.93 per dollar
The offshore yuan was little changed at 7.2965 per dollar.
The British pound fell 0.2% to $1.2666
Cryptocurrencies
Bitcoin fell 0.7% to $61,455.41
Ether fell 0.7% to $3,384.89
Obligations
The 10-year Treasury yield rose two basis points to 4.27%
The German 10-year yield rose one basis point to 2.43%
The UK 10-year yield rose two basis points to 4.10%
Raw materials
Brent crude rose 0.1% to $85.10 a barrel
Spot gold fell 0.2% to $2,315.91 an ounce
This story was produced with the help of Bloomberg Automation.
–With help from Carly Wanna, Winnie Hsu and Michael Msika.
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