(Bloomberg) — U.S. futures fell on a report that the U.S. Justice Department is seeking a breakup of Alphabet Inc.’s Google search engine. is considering, which signals an antitrust crackdown on Big Tech.
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S&P 500 contracts fell 0.3%, while Nasdaq 100 futures fell 0.5% after a recovery on Wall Street driven by gains for Nvidia Corp. shares. Ten-year government bond yields hovered above the key 4% level after reduced expectations for rate cuts led to a selloff in recent days. The European benchmark Stoxx 600 index was little changed.
Traders will be watching inflation data on Thursday for signs that the Federal Reserve will continue to cut interest rates. The central bank official’s latest speeches signaled a measured approach, with Fed Bank of Boston President Susan Collins noting that rate cuts must be cautious and data-driven.
Meanwhile, China’s CSI 300 Index fell as much as 7.4% before recouping some of its losses after authorities announced a fiscal policy briefing on Saturday.
Concerns have been growing that the latest stimulus measures from China may not be enough to convince investors of a sustainable stock market rally. Chinese tourists spent less money during their long vacation, while a news report showed the country needs to implement policies to stabilize growth and expectations. That’s a further sign that Beijing is trying to build confidence among investors.
The National Development and Reform Commission, China’s economic planning agency, announced that a paltry 200 billion yuan ($28 billion) in spending will be brought forward from next year, after analysts estimated a budget package worth as much as 3 trillion yuan was in the pipeline.
“To maintain the enthusiasm in markets, much more aggressive gestures for the new fiscal package or the market stabilization mechanism may be needed,” said Homin Lee, senior macro strategist at Lombard Odier. “It is possible that these fluctuations will continue until the meeting of the Standing Committee of the National People’s Congress and also until the US elections in early November.”
Main events this week:
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Fed minutes, Wednesday
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The Fed’s Lorie Logan, Raphael Bostic, Austan Goolsbee and Mary Daly will speak Wednesday
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US CPI, initial unemployment claims, Thursday
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John Williams and Thomas Barkin of the Fed will speak on Thursday
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JPMorgan and Wells Fargo kick off earnings season for the major Wall Street banks on Friday
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U.S. PPI, University of Michigan Consumer Confidence, Friday
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The Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman will speak Friday
Some of the major moves in the markets:
Stocks
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The Stoxx Europe 600 was little changed at 8:12 a.m. London time
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S&P 500 futures fell 0.3%
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Nasdaq 100 futures fell 0.5%
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Futures on the Dow Jones Industrial Average fell 0.2%
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The MSCI Asia Pacific Index fell 0.2%
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The MSCI Emerging Markets Index fell 0.5%
Currencies
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The Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.2% to $1.0953
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The Japanese yen was little changed at 148.30 per dollar
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The offshore yuan was little changed at 7.0694 per dollar
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The British pound fell 0.3% to $1.3060
Cryptocurrencies
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Bitcoin fell 0.2% to $62,222.91
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Ether fell 0.3% to $2,434.28
Bonds
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The yield on 10-year government bonds was little changed at 4.01%
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The German ten-year yield fell by two basis points to 2.23%
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The British ten-year yield remained little changed at 4.18%
Raw materials
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Brent crude rose 0.6% to $77.62 per barrel
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Gold fell 0.4% to $2,610.79 an ounce
This story was produced with the help of Bloomberg Automation.
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