(Bloomberg) — Stocks edged higher after a positive session on Wall Street amid bets that the Federal Reserve will soon signal it is ready to cut rates.
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The MSCI all-country stock index had a ninth day of gains – the longest run of gains since December. European Stoxx 600 and US futures made small gains, while 10-year government bond yields remained stable. The yen fell and hovered around 147 per dollar.
Traders are taking a breather after Monday’s session in the US lifted the S&P 500 for the eighth day in a row. Stock volumes are trending lower as investors are reluctant to place big bets before central bankers meet for the Fed’s economic symposium in Jackson Hole this week.
“What we’ve seen happening is a slew of recent data that has allayed fears of slowing U.S. growth without stoking fears of a new acceleration in inflation,” said Kyle Rodda, senior market analyst at Capital.Com Inc .
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In Europe, investors will focus on Eurozone inflation data to be released later as there are signs that a slowdown in price growth is on the way. Rising risks to growth prospects have strengthened the case for a policy adjustment when the European Central Bank meets next month, said Governing Council member Olli Rehn.
On the business front, Alimentation Couche-Tard Inc.’s preliminary proposal could to 7-Eleven owner Seven & i Holdings Co. to buy could be worth more than ¥5.63 trillion ($38.4 billion), based on the Japanese company’s market value after news of the potential deal was announced.
A gauge of Asian currencies hit their highest level since January, while oil extended its biggest decline in two weeks after the US said Israel accepted a ceasefire proposal in Gaza.
Copper curtailed its recent recovery and gold surpassed $2,500 an ounce on expectations that the Fed is about to cut rates.
Main events this week:
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Eurozone CPI, Tuesday
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Minutes of the US Fed’s preliminary annual review of payrolls from the BLS, Wednesday
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HCOB PMI eurozone, consumer confidence, Thursday
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ECB will publish the report on the July interest rate decision on Thursday
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U.S. initial jobless claims, existing home sales, S&P Global PMI, Thursday
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Japanese CPI, Friday
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Bank of Japan Governor Kazuo Ueda will attend a special session of Japan’s parliament on Friday to discuss the July 31 rate hike
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Sales of new homes in the US, Friday
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Fed Chairman Jerome Powell will speak at the Jackson Hole Symposium in Wyoming on Friday
Some of the major moves in the markets:
Stocks
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The Stoxx Europe 600 was little changed at 8:03 a.m. London time
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S&P 500 futures rose 0.1%
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Nasdaq 100 futures rose 0.2%
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Futures on the Dow Jones Industrial Average were little changed
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The MSCI Asia Pacific Index rose 0.3%
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The MSCI Emerging Markets Index rose 0.2%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.1081
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The Japanese yen fell 0.3% to 147.08 per dollar
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The offshore yuan fell 0.1% to 7.1432 per dollar
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The British pound was little changed at $1.2995
Cryptocurrencies
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Bitcoin rose 3.2% to $60,982.31
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Ether rose 2.2% to $2,674.77
Bonds
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The yield on 10-year government bonds was little changed at 3.88%
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The German ten-year yield remained little changed at 2.25%
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The British ten-year yield remained little changed at 3.93%
Raw materials
This story was produced with the help of Bloomberg Automation.
–With help from Jason Scott.
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