Stocks were mixed on Wednesday as they headed for monthly declines on concern that restrictive monetary policy to tackle price pressures will harm the global economy. A dollar gauge and Treasury yields advanced.
(Bloomberg) — Stocks were mixed on Wednesday as they headed for monthly declines on concern that restrictive monetary policy to tackle price pressures will harm the global economy. A dollar gauge and Treasury yields advanced.
US futures advanced, while European shares reversed earlier gains to trade at the lowest level in more than six weeks. Bed Bath & Beyond Inc. plunged in premarket trading after the home-goods retailer announced in a filing that it may sell shares.
Energy companies and utilities led declines in Europe as investors fret over Russian gas supplies at the start of a three-day halt of the key Nord Stream pipeline.
Oil headed for a third monthly drop — the longest losing run in more than two years — hampered by the likelihood of slower global growth. European natural gas erased earlier gains.
Market bets on a shallower trajectory for Federal Reserve tightening are receding, raising the prospect of more losses for stocks and bonds in an already difficult year. Investors are scouring incoming data for clues on the policy path, with August US jobs figures on Friday the next key report.
“What’s clear is that predicting this market is not clean cut,” Angeline Newman, a managing director at UBS Global Wealth Management, said on Bloomberg Television. “We are living in a world where conflicting economic signals are making the path of monetary policy very difficult to determine.”
Meanwhile, euro-area inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a jumbo interest-rate hike when it meets next week. ECB Governing Council member Joachim Nagel urged a “strong” reaction.
Investors are also contending with mounting friction between Beijing and Taipei after Taiwanese soldiers fired shots to ward off civilian drones and evaluating the latest Chinese data, which indicated factory activity shrank for a second month. Power shortages, a property sector crisis and Covid outbreaks all took a toll.
An Asian stock gauge climbed in a mixed day that saw tech shares advance but Japan’s bourses retreat. BYD Co. plunged in Hong Kong after Warren Buffett’s Berkshire Hathaway Inc. trimmed its stake in the electric vehicle maker.
Here are some key events to watch this week:
- ECB Governing Council members due to speak at event Tuesday through Sept. 2
- Euro-area CPI, Wednesday
- Russia’s Gazprom set to halt Nord Stream pipeline gas flows for three days of maintenance, Wednesday
- Cleveland Fed President Loretta Mester due to speak, Wednesday
- China Caixin manufacturing PMI, Thursday
- US nonfarm payrolls, Friday
- UK leadership ballot closes Friday. Winner announced Sept. 5
Will Chinese sovereign bonds outperform Treasuries? China is the theme of this week’s MLIV Pulse survey. Click here to participate anonymously.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.2% as of 7:45 a.m. New York time
- Futures on the Nasdaq 100 rose 0.5%
- Futures on the Dow Jones Industrial Average were little changed
- The Stoxx Europe 600 fell 0.5%
- The MSCI World index fell 0.8%
Currencies
- The Bloomberg Dollar Spot Index rose 0.1%
- The euro fell 0.2% to $0.9990
- The British pound fell 0.3% to $1.1618
- The Japanese yen was little changed at 138.74 per dollar
Bonds
- The yield on 10-year Treasuries advanced three basis points to 3.13%
- Germany’s 10-year yield advanced two basis points to 1.53%
- Britain’s 10-year yield advanced nine basis points to 2.80%
Commodities
- West Texas Intermediate crude fell 2.6% to $89.29 a barrel
- Gold futures fell 0.6% to $1,725.50 an ounce
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
