Global stocks set for longest winning streak in 2024: End markets

(Bloomberg) — Stocks rose after a buoyant session on Wall Street amid bets that the Federal Reserve will soon signal it is ready to start cutting interest rates.

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MSCI’s all-country stock index headed for its ninth day of gains – its longest stretch of gains since December. Europe’s Stoxx 600 and US futures posted small gains, while 10-year Treasury yields were flat. The yen slipped to 147 to the dollar.

Traders are taking a breather after Monday’s US session lifted the S&P 500 for an eighth straight day. Stocks have been trending lower as investors are reluctant to make big bets before central bankers gather at the Fed’s Jackson Hole economic symposium this week.

“What has happened is a series of recent data that has eased fears of slowing US growth without fueling fears of re-accelerating inflation,” said Kyle Rodda, senior market analyst at Capital.Com Inc.

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In Europe, investors will focus on euro zone inflation data released later for signs that a slowdown in price growth is on track. Growing risks to the growth outlook strengthened the case for a policy adjustment at the European Central Bank’s meeting next month, Governing Council member Olli Rehn said.

On the corporate level, the preliminary proposal of Alimentation Couche-Tard Inc. to buy 7-Eleven owner Seven & i Holdings Co. could be worth more than ¥5.63 trillion ($38.4 billion), based on the Japanese company’s market value after news of the potential deal was revealed.

A gauge of Asian currencies hit their highest since January, while oil extended its biggest drop in two weeks as the US said Israel had accepted a ceasefire proposal in Gaza.

Copper recently pared its rally and gold topped $2,500 an ounce on expectations that the Fed is ready to cut interest rates.

Key events this week:

• Euro zone CPI on Tuesday

• US Fed Minutes Preliminary Review of BLS Annual Payrolls, Wednesday

• Eurozone HCOB PMI, consumer confidence, Thursday

• The ECB publishes the July rate decision report on Thursday

• US Initial Jobless Claims, Existing Home Sales, S&P Global PMI, Thursday

• Japan’s CPI on Friday

• Bank of Japan Governor Kazuo Ueda will attend a special session of the Japanese parliament on Friday to discuss a July 31 interest rate hike

• US new home sales on Friday

• Fed Chairman Jerome Powell speaks at the Jackson Hole Symposium in Wyoming on Friday

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Some of the main movements in the markets:

Stocks

• The Stoxx Europe 600 was little changed at 8:03 a.m. London time

• S&P 500 futures rose 0.1%

• Nasdaq 100 futures rose 0.2%

• Futures on the Dow Jones Industrial Average were little changed

• MSCI Asia Pacific index rose 0.3%

• MSCI Emerging Markets index rose 0.2%

Coins

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1081

• The Japanese yen fell 0.3 percent to 147.08 per dollar

• The offshore yuan was down 0.1 percent at 7.1432 per dollar

• The British pound was little changed at $1.2995

Cryptocurrencies

• Bitcoin rose 3.2% to $60,982.31

• Ether rose 2.2% to $2,674.77

BONDS

• The 10-year Treasury yield was little changed at 3.88%

• Germany’s 10-year yield was little changed at 2.25%

• Britain’s 10-year yield was little changed at 3.93%

commodities

This story was produced with the help of Bloomberg Automation.

–With help from Jason Scott.

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