Stocks Set for Mixed Open Amid Focus on Fed, China: Markets Wrap

(Bloomberg) — Asian stocks were poised for a mixed open Monday after small gains on Wall Street Friday as investors continue to focus on the outlook for interest rates.

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Australian shares inched higher while Japanese equity futures pointed to a slight increase. Contracts for the S&P 500 fluctuated after the index added 0.5% Friday. Futures for Hong Kong fell earlier, as did a gauge of US-listed Chinese shares.

The dollar stuck within narrow ranges against its Group-of-10 counterparts. Government bond yields edged up in Australia and New Zealand, following moves in Treasuries Friday, with more policy-sensitive shorter maturities leading the way.

Markets this week will be looking to minutes of the most recent Federal Reserve policy meeting for more clues on the course of rate hikes.

Atlanta Fed President Raphael Bostic said he favors slowing the pace of interest rate increases, with no more than 1 percentage point more of hikes, to try to ensure the economy has a soft landing. Boston Fed President Susan Collins reiterated her view that options are open for the size of the December interest-rate increase, including the possibility of a 75 basis-point move.

Meanwhile, China reported its first Covid-related death in almost six months, sparking concern it could return to tighter restrictions. While many global investors are piling back into the nation’s assets on signs of a more market-friendly tone in Beijing, others remain wary of policy risks.

Key events this week:

  • China loan prime rate, Monday

  • US Chicago Fed national activity index, Monday

  • US Richmond Fed manufacturing index, Tuesday

  • OECD releases Economic Outlook, Tuesday

  • Fed’s Loretta Mester and James Bullard speak, Tuesday

  • S&P Global PMIs: US, Euro area, UK, Wednesday

  • US MBA mortgage applications, durable goods, initial jobless claims, University of Michigan sentiment, new home sales, Wednesday

  • Minutes of the Federal Reserve’s Nov. 1-2 meeting, Wednesday

  • ECB publishes account of its October policy meeting, Thursday

  • US stock and bond markets are closed for the Thanksgiving holiday, Thursday

  • US stock and bond markets close early, Friday

Some of the main moves in markets :

Stocks

  • S&P 500 futures were little changed as of 8:10 a.m. in Tokyo. The S&P 500 rose 0.5% Friday

  • Nasdaq 100 futures rose 0.1%. The Nasdaq 100 was little changed

  • Nikkei 225 futures rose 0.2%

  • Australia’s S&P/ASX 200 Index rose 0.3%

  • Hang Seng Index futures fell 0.4%

Currencies

  • The euro was little changed at $1.0329

  • The Japanese yen rose 0.1% to 140.22 per dollar

  • The offshore yuan was little changed at 7.1229 per dollar

Cryptocurrencies

  • Bitcoin fell 0.2% to $16,227.33

  • Ether fell 0.5% to $1,136.05

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

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