Global Stocks Set for Longest Win Streak of 2024: Markets Wrap

(Bloomberg) — Stocks ticked higher after a buoyant session on Wall Street amid bets the Federal Reserve will soon signal it’s ready to start cutting interest rates.

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MSCI’s all-country stock index headed for a ninth day of increases — the longest run of gains since December. US futures and Europe’s Stoxx 600 were little changed, while Treasury 10-year yields held steady. The dollar hovered near its weakest level since March.

Traders are taking a breather after Monday’s session in the US lifted the S&P 500 for an eighth straight day. Stock volumes have been trending lower with investors reluctant to place big bets before central bankers gather for the Fed’s Jackson Hole economic symposium this week.

“What we’ve seen happen is a swath of recent data, which has eased fears about slowing US growth without stoking fears of re-accelerating inflation,” said Kyle Rodda, a senior market analyst at Capital.Com Inc.

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On the corporate front, Alimentation Couche-Tard Inc.’s preliminary proposal to buy 7-Eleven owner Seven & i Holdings Co. 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 disclosed.

The European Union said it plans to introduce a 9% tariff on Teslas imported from China. Hawaiian Holdings Inc. rose more than 10% in premarket trading after the US Justice Department decided against challenging its proposed tie-up with Alaska Air Group Inc.

Meanwhile, Eli Lilly & Co.’s shares strengthened after a study showed the benefits of its Zepbound weight-loss shot for the prevention of diabetes.

In Europe, increasing risks to the region’s growth outlook have reinforced the case for a policy adjustment when the European Central Bank meets next month, Governing Council member Olli Rehn said. Markets are pricing in at least two more rate reductions this year.

A gauge of Asian currencies touched the highest since January, while oil steadied after the biggest drop in two weeks.

Gold topped $2,500 an ounce on expectations that the Fed is poised to cut interest rates.

Key events this week:

• US Fed minutes, BLS preliminary annual payrolls revision, Wednesday

• Eurozone HCOB PMI, consumer confidence, Thursday

• ECB publishes account of July rate decision, Thursday

• US initial jobless claims, existing home sales, S&P Global PMI, Thursday

• Japan CPI, Friday

• Bank of Japan Governor Kazuo Ueda to attend special session at Japan’s parliament to discuss July 31 rate hike, Friday

• US new home sales, Friday

• Fed Chair Jerome Powell speaks at Jackson Hole symposium in Wyoming, Friday

Story continues

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 7:58 a.m. New York time

• Nasdaq 100 futures were little changed

• Futures on the Dow Jones Industrial Average were little changed

• The Stoxx Europe 600 was little changed

• The MSCI World Index was little changed

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1083

• The British pound rose 0.2% to $1.3012

• The Japanese yen rose 0.1% to 146.41 per dollar

Cryptocurrencies

• Bitcoin rose 2.4% to $60,535.78

• Ether rose 1% to $2,642.52

Bonds

• The yield on 10-year Treasuries was little changed at 3.87%

• Germany’s 10-year yield declined one basis point to 2.23%

• Britain’s 10-year yield was little changed at 3.93%

Commodities

• West Texas Intermediate crude was little changed

• Spot gold rose 0.9% to $2,526.78 an ounce

This story was produced with the assistance of Bloomberg Automation.

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