Stocks rise with focus on inflation data: Markets wrap

(Bloomberg) — Stocks rose as markets reopened in Europe and the U.S. as traders looked to inflation rates and central bank spokesmen for hints on the timing of interest rate cuts.

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The European Stoxx 600 index was little changed, on track for a 3.5% gain in May, while US stock futures rose 0.3%. The 10-year Treasury yield fell two basis points and the dollar stabilized. Brent crude also settled after two days of gains even as tensions rose in the Middle East after an Egyptian soldier was killed during a clash with Israeli forces.

Consumer inflation expectations in the euro zone fell in April, while the Fed’s preferred measure of core inflation is expected to show modest relief when it arrives on Friday. The European Central Bank’s Klaas Knott speaks on Tuesday, and Lisa Cook and Neel Kashkari are scheduled to be among the speakers at the Fed this week.

“We are watching the inflation data very closely right now,” said Maria Veitman, chief multi-asset strategist at State Street Global Markets. “Equities and risk will continue to be supported, but I don’t see a change in leadership or an expansion of performance. Large-cap growth stocks will be the leaders.

ECB policymakers next meet on interest rates on June 6. On Monday, François Villeroy de Galhau of France said the ECB should not rule out cutting interest rates in both June and July, although hawkish policymakers including Executive Board member Isabelle Schnabel recently came out in opposition to backing a policy cut. interest rates. Moves back.

As traders return from the long weekend, they will also be alert to problems associated with the shift to the “T+1” rule – under which US stocks will settle in one day instead of two.

There are concerns about potential emerging issues, including that international investors may find it difficult to get dollars on time, global funds will move at different speeds to their assets, and everyone will have less time to fix mistakes.

Wall Street returns to trading T+1 stocks after a century

Elsewhere, Bitcoin fell as traders monitored transfers through wallets belonging to the failed Mt.Gox exchange, whose managers stepped up efforts to return a $9 billion trove of the largest digital assets to creditors.

Some key events this week:

• The International Monetary Fund is holding discussions with Ukrainian authorities to review economic policies as the country seeks to release the next batch of $2.2 billion in aid, on Monday.

• Cleveland Fed President Loretta Mester speaks at a Bank of Japan event in Tokyo. Minneapolis Fed President Neel Kashkari and ECB Governing Council member Klaas Knott address the Barclays-CEPR International Monetary Policy Forum, Tuesday.

• The presidential elections in South Africa are the most important since the end of apartheid, Wednesday

• The Fed will release its “Beige Book” economic survey on Wednesday

• South Africa Interest Rate Decision, US Initial Jobless Claims, GDP, Wholesale Inventories, Thursday

• New York Fed President John Williams speaks at the Economic Club of New York on Thursday

• GDP data for Canada, the Eurozone and Turkey were published on Friday

• Unemployment in Japan, CPI in Tokyo, industrial production, retail sales, Friday

The story continues

Some key movements in the markets:

Stores

• The Stoxx Europe 600 index was little changed as of 9:20 a.m. London time

• S&P 500 futures rose 0.3%

• Nasdaq 100 futures rose 0.5%

• Dow Jones Industrial Average futures were little changed

• There was little change in the MSCI Asian stock index

• There was little change in the MSCI Emerging Markets Index

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro rose 0.1 percent to $1.0875

• There was little change in the Japanese yen at 156.90 to the dollar

• There was little change in the yuan in external transactions at 7.2640 to the dollar

• There was little change in the pound sterling at $1.2771

Digital currencies

• Bitcoin fell 2.5% to $67,821.07

• Ethereum fell 0.9% to $3,855.48

Bonds

• The yield on the 10-year Treasury note fell 2 basis points to 4.45%.

• There was little change in the yield on 10-year German bonds at 2.55%.

• The yield on British 10-year bonds fell four basis points to 4.22%.

Goods

• Brent crude rose 0.2 percent to $83.27 a barrel

• Gold in spot transactions fell 0.4 percent to $2,340.71 per ounce

This story was produced with assistance from Bloomberg Automation.

-With assistance from Hoyun Kim, Ruth Carson, Aya Wagatsuma, and Jason Scott.

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