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

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(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 stocks rallied slightly higher, while Japanese stock futures pointed to a slight increase. Contracts for the S&P 500 fluctuated after the index added 0.5% on Friday. Futures for Hong Kong fell earlier, as did a gauge for US-listed Chinese stocks.

The dollar remained within narrow margins against its Group of 10 counterparts. Government bond yields rose slightly in Australia and New Zealand following movements in Treasuries Friday, with more policy-sensitive shorter maturities leading the way.

Markets will look to the minutes of the Federal Reserve’s most recent policy meeting this week for more clues about the course of rate hikes.

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

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

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Main events this week:

  • Prime rate Chinese loan, Monday

  • US Chicago Fed National Activity Index, Monday

  • US Richmond Fed Manufacturing Index, Tuesday

  • The OECD publishes Economic Outlook on 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, First Unemployment Claims, University of Michigan Sentiment, New Home Sales, Wednesday

  • Minutes from the Federal Reserve meeting on November 1 and 2, Wednesday

  • The ECB will publish the report of its policy meeting in October on Thursday

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

  • US stock and bond markets close early Friday

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Some of the major movements in markets:

Shares

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

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

  • Nikkei 225 futures rose 0.2%

  • The Australian 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 changed little at 7.1229 to the dollar

Cryptocurrencies

  • Bitcoin fell 0.2% to $16,227.33

  • Ether fell 0.5% to USD 1,136.05

Bonds

Raw materials

This story was created with the help of Bloomberg Automation.

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