European shares rise, focus turns to inflation data: Market wrap-up

(Bloomberg) — European stocks rose on Monday as inflation data from the U.S. and U.K. likely confirmed that interest rates have peaked.

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The Stoxx 600 rose 0.7%, with gains on Wall Street also boosting the stock on Friday. Healthcare companies were among the strongest performers, with Novo Nordisk A/S rising nearly 4% after a study backed the use of its blockbuster weight-loss drug Wegovy to reduce heart disease in obese patients Seizures and Death.

Earlier, Asian stocks rose, led by Taiwan Semiconductor Manufacturing Co., Ltd., which posted its first monthly sales increase since February, signaling a recovery in the global chip market. Contracts for the S&P 500 and Nasdaq 100 fell about 0.2%, giving up some of Friday’s gains. Technology-led gains.

U.S. consumer price data on Tuesday are expected to show inflation slowed to an annual rate of 3.3% in October, down from 3.7% last month. UK data is due out on Wednesday and price growth is also expected to slow. So far this month, the yield has slipped to about 4.65%, down about 30 basis points.

While money markets remain betting that the Fed will cut interest rates starting next year, economists are divided over when and how quickly policy easing might come. Morgan Stanley predicts significant interest rate cuts over the next two years, starting in June next year, and Goldman Sachs expects the first rate cut to occur around the end of 2024.

“We had a very critical week last week and everyone was sending similar messages and I think the Fed is done,” Eric Robertsen, global head of research at Standard Chartered, said on Bloomberg TV. Long-term interest rates, which started moving higher here, have been significantly lower. “

Meanwhile, more signs of a thaw in U.S.-China relations are emerging, with Joe Biden and Xi Jinping set to meet on Wednesday and Beijing reportedly considering ending a freeze on Boeing Co. aircraft purchases. Boeing shares rose more than 3% in premarket trading in New York.

“All these things are starting to align, indicating that both parties are indeed intent on making this look like a better outcome,” Helen Chu, chief investment officer of Nan Fung Trinity Hong Kong Ltd., said in an interview with Bloomberg TV.

Investors are also paying close attention to the yen’s slide to a new low against the dollar in 2023, raising concerns that authorities will step in to support the yen.

Oil prices extended three weeks of losses on demand concerns, with West Texas Intermediate crude trading near $76 ahead of monthly market reports from OPEC and the International Energy Agency.

Bitcoin is hovering near $37,000 – its highest price in about 18 months.

Upcoming events this week:

  • European Central Bank Vice President Luis de Guindos delivers a speech on Monday

  • U.S. consumer price index, Tuesday

  • Number of people applying for unemployment benefits in the UK on Tuesday

  • Chicago Fed President Austen Goolsby speaks Tuesday

  • China retail sales on Wednesday

  • UK consumer price index, Wednesday

  • US retail sales, PPI, Wednesday

  • China’s new home prices on Thursday

  • The number of Americans filing for unemployment benefits for the first time on Thursday

  • New York Fed President John Williams, Thursday

  • U.S. housing construction starts on Friday

  • European Central Bank President Christine Lagarde speaks on Friday

  • Chicago Fed President Austen Goolsby, Boston Fed President Susan Collins and San Francisco Fed President Mary Daly all spoke Friday

Some major trends in the market:


  • As of 9:20 a.m. London time, the Stoxx Europe 600 index was up 0.8%

  • S&P 500 futures fell 0.2%

  • Nasdaq 100 futures fell 0.3%

  • Dow Jones Industrial Average futures were little changed

  • MSCI Asia Pacific index rose 0.3%

  • MSCI emerging markets index rose 0.5%


  • Bloomberg U.S. Dollar Spot Index little changed

  • EUR/USD was little changed at $1.0691

  • The yen fell 0.2% to 151.78 against the dollar

  • The offshore yuan rose 0.1% to 7.2990 against the dollar

  • Sterling rises 0.2% to $1.2246


  • Bitcoin drops 0.5% to $37,004.8

  • Ethereum fell 0.3% to $2,054.31


  • The 10-year bond yield was little changed at 4.65%

  • Germany’s 10-year bond yield rose 1 basis point to 2.73%

  • The UK 10-year government bond yield was little changed at 4.34%


  • Brent crude oil little changed

  • Spot gold fell 0.2% to $1,936.33 an ounce

This story was produced with the assistance of Bloomberg Automation.

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