Tech-fueled US futures gain cautious optimism: Markets wrap

(Bloomberg) — Amazon.com Inc. and Intel Corp. US equity futures ended a volatile week higher as the . Crude oil rose after US strikes on Iran-linked factories in Syria.

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Nasdaq futures added 0.8% after a selloff that sent the index to its lowest level since May. The pullback put the S&P 500 on the brink of a “correction,” down nearly 10% from its July peak.

The Stoxx Europe 600 fell at the open as earnings continued to disappoint. NatWest Group Plc fell after cutting margin guidance as higher interest rates fueled competition for deposits. Universal Music Group NV, Taylor Swift’s record label, collapsed after some ratings misses. Energy majors advanced as Brent crude rose more than 1% to near $90 a barrel.

Earnings season has so far proved a mixed bag, with investors punishing misses more harshly than rewarding beats. JPMorgan Chase & Co. According to strategists, 78% of companies in the US report beating estimates, compared to 57% in Europe. But more firms than usual are flagging lower consumer demand and worsening economic conditions, even as data Thursday suggested price pressures in the U.S. continue to dissipate despite solid economic growth, they said.

Attention turns to several reports today, including the Federal Reserve’s preferred measure of underlying price pressures, to confirm bets the central bank will pause next week.

Hebei Chen, analyst at IG Markets in Melbourne, said: “Stable U.S. growth and earnings hits from some U.S. tech giants are long-awaited relief for stressed investors. “As we approach the end of the month, investors are holding their breath for next week’s FOMC meeting, which will set the tone for the rest of the year. it’s ready.”

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Hong Kong and Japan stocks led the gains in Asia, while Australian and South Korean stocks were also in the green. Mainland Chinese shares rose after data on industrial firms’ profits showed growth, although they were softer than in the previous period.

With Treasury yields higher and the dollar steady, exchange contracts predict a one-in-three chance of another central bank hike in the current tightening cycle, according to data compiled by Bloomberg.

The yen was steady after Tokyo inflation, an indicator of Japanese consumer spending pressures, unexpectedly accelerated for the first time in four months. Japanese Finance Minister Shunichi Suzuki reiterated that authorities are watching currency moves with a greater sense of urgency.

Meanwhile, traders are closely watching geopolitical developments in the Middle East, after Israel’s military said it had killed Hamas’s intelligence deputy chief, who it said had helped plan the October 7 attacks. The military launched a limited ground offensive in northern Gaza overnight, while Iran stepped up its rhetoric with the United States.

Highlights of this week:

  • US PCE deflator, personal spending and income, University of Michigan Consumer Sentiment, Friday

  • Exxon Mobil earnings, Friday

Some key movements in the markets:

Shares

  • The Stoxx Europe 600 was down 0.3% as of 8:16 a.m. London time.

  • S&P 500 futures rose 0.4%

  • Nasdaq 100 futures rose 0.7%

  • Futures for the Dow Jones industrial average rose 0.1%

  • The MSCI Asia Pacific index rose 1.1%

  • The MSCI emerging market index rose 0.9%

Coins

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0558

  • The Japanese yen rose 0.1% to 150.21 per dollar

  • The offshore yuan was little changed at 7.3229 per dollar

  • The British pound fell 0.1% to $1.2116

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Cryptocurrencies

  • Wikipedia changed small to $34,183.54

  • Ether fell 0.2% to $1,794.36

Bonds

  • The yield on 10-year Treasuries rose four basis points to 4.88%

  • Germany’s 10-year yield was little changed at 2.86%

  • Britain’s 10-year yield was little changed at 4.59%

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This story was produced with the help of Bloomberg Automation.

–With assistance from Tasia Sibahuder and Georgina McKay.

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