Global Stocks Hold Monthly Gain Before Fed, ECB: Markets Wrap

  • In Business
  • 2023-01-31 02:40:45Z
  • By Bloomberg

(Bloomberg) -- A gauge of global stocks held to a monthly gain of more than 6% amid mixed trading in Asia on Tuesday as investors positioned for interest-rate hikes this week from the Federal Reserve and the European Central Bank.

Most Read from Bloomberg

  • Wall Street Is Losing Out to Amateur Buyers in the Housing Slump

  • Trump Sues Journalist Bob Woodward for Releasing Interview Recordings

  • Adani Rout Hits $68 Billion as Fight With Hindenburg Intensifies

  • Even on $100,000-Plus, More Americans Are Living Paycheck to Paycheck

  • Historic Crash for Memory Chips Threatens to Wipe Out Earnings

Equities benchmarks for Hong Kong, mainland China and Japan fluctuated. Futures for US indexes edged up in the wake of a torrid session on Wall Street that saw the Nasdaq 100 suffer its worst day since Dec. 22 as Apple Inc. and Microsoft Corp. weighed on the market.

Samsung Electronics Co. fell as much 3% in Seoul, weighing on South Korea's Kospi gauge, after profit slumped on poor demand for semiconductors and weakness in smartphones and memory chips.

A measure of dollar strength slipped marginally after the greenback climbed versus all its Group-of-10 counterparts on Monday. The yield on 10-year Treasuries was also little changed around 3.54%.

Traders in Asia are also focused on developments surrounding India's Adani Group, and economic data from China, where January purchasing managers' surveys beat expectations, reflecting a recovery in demand that should support the nation's asset prices.

Abu Dhabi's International Holding Co. has agreed to invest about $400 million in Adani Enterprises Ltd.'s follow-on share sale, providing a positive contrast to the onslaught that's wiped almost $70 billion from the market value of Gautam Adani's business empire. Adani bonds rebounded from record lows.

Hanging over everything is Wednesday's Fed decision, with the US central bank widely expected to raise rates by a quarter percentage point. Investors will be watching for the tone officials set for future meetings after Fed Chair Jerome Powell's consistent efforts to push back against traders anticipating rate cuts later this year.

The rally in stocks this month suggests the market has so far brushed off Powell's warning of "higher-for-longer" interest rates.

Those adding to the rally will be disappointed if they're in direct defiance of the Fed, a team of Morgan Stanley strategists led by Mike Wilson said in a note. Citi Global Wealth's Kristen Bitterly echoed this, saying that January's rally was technical as it was largely driven by 2022's "laggards and losers."

"Even after they've stopped on the rate hikes, there is still the quantitative tightening that still poses a threat for a lot of risk assets," Mary Nicola, a global multi-asset portfolio manager for PineBridge Investments, said in an interview with Bloomberg Radio.

Elsewhere in markets, oil steadied after slipping to a three-week low on Monday. Traders are waiting for more clues on Chinese demand, the Fed decision and the latest guidance from OPEC+.

Also on the agenda for the week are policy meetings in Europe and the UK on Thursday, and the US jobs report on Friday. A less tight labor market is a key goal for the Fed.

Key events this week:

  • China industrial profits, PMIs, Tuesday

  • Eurozone GDP, Tuesday

  • US Conference Board consumer confidence, Tuesday

  • Earnings Tuesday include: UBS, Unicredit, Snap and Advanced Micro Devices

  • Eurozone Manufacturing PMI, CPI, unemployment, Wednesday

  • US construction spending, ISM Manufacturing, light vehicle sales, Wednesday

  • FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday

  • Earnings Wednesday include: Meta Platforms and Peloton Interactive

  • Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday

  • UK BOE rate decision, Thursday

  • US factory orders, initial jobless claims, US durable goods, Thursday

  • Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander

  • Eurozone S&P Global Eurozone Services PMI, PPI, Friday

  • US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:


  • S&P 500 futures rose 0.2% as of 11:35 a.m. Tokyo time. The S&P 500 fell 1.3%

  • Nasdaq 100 futures rose 0.2%. The Nasdaq 100 fell 2.1%

  • Japan's Topix was little changed

  • Australia's S&P/ASX 200 rose 0.2%

  • Hong Kong's Hang Seng rose 0.3%

  • The Shanghai Composite was little changed

  • Euro Stoxx 50 futures fell 0.2%


  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0853

  • The Japanese yen rose 0.2% to 130.09 per dollar

  • The offshore yuan was little changed at 6.7593 per dollar

  • The Australian dollar fell 0.1% to $0.7050


  • Bitcoin rose 0.6% to $22,887.34

  • Ether rose 1% to $1,572.82


  • The yield on 10-year Treasuries was little changed at 3.54%

  • Japan's 10-year yield rose 0.5 basis point to 0.48%

  • Australia's 10-year yield was little changed at 3.54%


  • West Texas Intermediate crude was little changed

  • Spot gold rose 0.1% to $1,925.23 an ounce

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Isabelle Lee, Rheaa Rao, Rob Verdonck and Richard Henderson.

Most Read from Bloomberg Businessweek

  • After 30 Years, the King of ETFs Faces a Fight for Its Crown

  • How to Be 18 Years Old Again for Only $2 Million a Year

  • The Secret to EV Success Is the Software

  • Spanish-Speaking Streamers Are the Hottest Thing on Twitch

  • From 'the Coin' to High-Interest Bonds, the US's Debt-Limit Options Aren't Great

©2023 Bloomberg L.P.


Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business