European Futures Rise Ahead Of Powell Comments: Markets Wrap

(Bloomberg) -- European equity futures gained even as Asian stocks slipped Friday after the MSCI All Country World Index finished November with its third-largest monthly gain in the past decade. (Bloomberg) -- European equity futures gained even as Asian stocks slipped Friday after the MSCI All Country World Index finished November with its third-largest monthly gain in the past decade. European contracts rose ahead of euro zone manufacturing data, as well as comments from Federal Reserve Chair Jerome Powell that will be parsed for more clues about the path of interest rates. US futures were slightly lower after the S&P 500 climbed 0.4% Thursday, rising nearly 9% for the month to notch one of its best Novembers on record. The all-country gauge posted its best month since 2020. The MSCI Asia-Pacific stock index fell as much as 0.5%, though Chinese shares pared losses into the afternoon following a report that an unidentified state institution bought exchange-traded funds, in what could be the latest effort to bolster markets as shares continue to slump. The dollar weakened against all its major peers as a measure of US inflation eased, fueling bets on an end to the Fed’s tightening cycle to continue the narrative which helped US and global stocks surge last month. The Bloomberg Dollar Spot Index fell in November by the most in a year. “Data prints seem to highlight that the US economy may be slowing down,” OCBC analysts including Selena Ling said a note. “Cooler demand may reinforce the notion that the Fed is likely done tightening for the current cycle and help build expectations for the Fed to start cutting rates” in the second quarter. Still, the November rally caught many off guard — including Wall Street strategists, who as of mid-October expected the S&P 500 to end the year at 4,370. It closed Thursday at 4,567.80. “Almost everyone was offsides coming into November,” said Ryan Detrick, chief market strategist at Carson Group. “So there’s still a big opportunity for traders to chase gains in December, too.” Meanwhile, China’s Caixin manufacturing PMI data beat estimates to suggest an expansion in activity, but that may not be enough to assuage worries about the economy’s ability to build momentum as it heads into the next year. Korean exports — seen a bellwether for global trade due to its early release — rose more than expected in November. Israel said it’s resumed combat against Hamas in the Gaza Strip, after a weeklong truce between the two sides ended. In a rare move, Alibaba Group Holding Ltd. received a downgrade from Wall Street on the same day it lost its crown as China’s most valuable e-commerce firm to one of its main rivals. Morgan Stanley cut its rating on Alibaba’s American depositary receipts to equal-weight from overweight, lowering its price target to $90 from $110. In Japan, Seven & i Holdings Co. rose the most since February 2022 after the nation’s largest retailer said it will buy back up to ¥110 billion ($748 million) of shares and conduct a 3-for-1 stock split. Treasuries were steady Friday after declining Thursday. The 10-year yield dropped about 60 basis points in November to 4.33%. Australian bonds fell as home-price growth slowed in November. Gold was on track for a third weekly gain. Crude prices fell even as the OPEC+ group of petroleum producing nations agreed to a supply cutback of about 900,000 barrels a day, in a sign traders are skeptical it will be implemented. WATCH: Paul Gambles, Co-Founder & Managing Partner at MBMG Group, gives his top conviction calls to Yousef Gamal El-din on “BloombergDaybreak: Middle East & Africa.” Key events this week: Eurozone S&P Global Manufacturing PMI, Friday US construction spending, ISM Manufacturing, Friday Fed Chair Jerome Powell to participate in “fireside chat” in Atlanta, Friday Chicago Fed President Austan Goolsbee speaks, Friday Some of the main moves in markets: Stocks S&P 500 futures were little changed as of 6:50 a.m. London time S&P/ASX 200 futures were little changed Hong Kong’s Hang Seng fell 0.6% The Shanghai Composite rose 0.1% Euro Stoxx 50 futures rose 0.3% Nasdaq 100 futures fell 0.2% Currencies The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.0911 The Japanese yen was little changed at 148.23 per dollar The offshore yuan was little changed at 7.1479 per dollar The Australian dollar was unchanged at $0.6605 The British pound rose 0.1% to $1.2637 Cryptocurrencies Bitcoin rose 1.1% to $38,174.5 Ether rose 2.2% to $2,091.09 Bonds The yield on 10-year Treasuries was little changed at 4.33% Japan’s 10-year yield advanced four basis points to 0.700% Australia’s 10-year yield advanced eight basis points to 4.49% Commodities West Texas Intermediate crude was little changed Spot gold rose 0.2% to $2,041.14 an ounce This story was produced with the assistance of Bloomberg Automation. More stories like this are available on bloomberg.com ©2023 Bloomberg L.P.