Stocks faced downward pressure today as investors awaited the Bank of England’s rate decision and US initial jobless claims. Treasuries also slipped following a weak US bond sale, with government debt in Australia, New Zealand, and Japan falling in tandem.
In Europe, the Stoxx 600 remained relatively flat after four consecutive days of gains, while futures on the S&P 500 pointed to declines at the Wall Street open. Ten-year Treasuries ticked lower after tepid demand at a $42 billion sale, indicating a lack of investor interest in the bond market.
The stock bounce seen in recent weeks is fading as earnings season winds down and investors brace for potential interest rate moves. US-listed shares in Arm Holdings and Intel Corp. dropped after releasing lackluster forecasts and facing restrictions to sell to Huawei Technologies. Additionally, Airbnb Inc. shares fell in post-market trade.
Looking ahead, inflation figures next week will provide insights into the strength of the US economy. Fed Bank of Boston President has suggested that interest rates will remain at a two-decade high for longer, adding to market uncertainty.
In other news, Chinese shares have risen as the economy shows signs of recovery, while West Texas Intermediate continues to extend gains. Key events this week include the UK BOE rate decision, US initial jobless claims, and UK industrial production and GDP data.
Overall, markets remain mixed with the Stoxx Europe 600 little changed, S&P 500 futures falling, MSCI Asia Pacific Index falling, and the Bloomberg Dollar Spot Index remaining stable. Cryptocurrencies are also seeing movement, with Bitcoin falling and Ether rising. Bonds are showing little change in yields on 10-year Treasuries, while commodities such as Brent crude and spot gold are on the rise.
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