Stocks Trade Mixed Before Key Inflation Prints: Markets Wrap

Stocks Trade Mixed Before Key Inflation Prints: Markets Wrap

(Bloomberg) — Stocks saw slight moves as traders focused on key European inflation data and the Federal Reserve’s preferred measure of price growth for guidance on scope and timing of political relaxation.

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The Stoxx 600 changed little, with a gain of 2.4% over the month. U.S. stock contracts fell slightly after the S&P 500 fell on Thursday, led by losses in the technology sector. The dollar and US Treasuries remained stable.

The core PCE deflator, which the Fed favors to measure inflation, likely moderated in April to its slowest monthly pace on record this year. In Europe, price data will help traders gauge how much cutting room policymakers have ahead of next week’s European Central Bank meeting.

Stock market gains this month were fueled by the tech sector’s recovery as well as Fed Chairman Jerome Powell’s dovish stance on rates in early May. That optimism has faded over the month, and Friday’s data could revive hopes for easing if there are signs inflation is returning to target.

Global bond markets falter once again as rate cut hopes fade

Elsewhere, a jury found Donald Trump guilty of all 34 counts of falsifying business records during his secret trial, making him the first former US president to be convicted of crimes. With Trump scheduled to be sentenced on July 11, the conviction creates a daunting legal and political path as he faces President Joe Biden in November as the presumptive Republican nominee.

“Expectations of a guilty verdict have been somewhat priced in by the markets,” Paresh Upadhyaya, director of fixed income and foreign exchange strategy at Amundi Asset Management in Boston. “The biggest impact on markets could come if this guilty verdict begins to shift momentum away from Trump and toward Biden. »

Trump Media & Technology Group fell 12% in extended trading.

Wall Street billionaires are rushing to support Trump, the verdict be damned

Key events this week:

  • Eurozone CPI, Friday

  • US consumer income, spending, PCE deflator, Friday

  • Fed’s Raphael Bostic speaks Friday

Some of the main market movements:

Actions

  • The Stoxx Europe 600 was little changed at 8:31 a.m. London time

  • S&P 500 futures fell 0.2%

  • Nasdaq 100 futures fell 0.4%

  • Dow Jones Industrial Average futures little changed

  • The MSCI Asia-Pacific index rose 0.2%

  • The MSCI Emerging Markets Index fell 0.6%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1%

  • The euro fell 0.1% to $1.0819

  • The Japanese yen fell 0.1% to 157.05 per dollar

  • The offshore yuan fell 0.1% to 7.2634 per dollar.

  • The British pound fell 0.2% to $1.2703

Cryptocurrencies

  • Bitcoin fell 0.2% to $68,319.76

  • Ether rose 0.2% to $3,744.87

Obligations

  • The 10-year Treasury yield rose two basis points to 4.56%

  • The German 10-year yield rose one basis point to 2.67%

  • The UK 10-year yield rose two basis points to 4.37%

Raw materials

This story was produced with the help of Bloomberg Automation.

–With help from Matthew Burgess, Carter Johnson and Chiranjivi Chakraborty.

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