(Bloomberg) — European stocks fluctuated in a narrow range and US equity futures edged lower as investors prepared for the Federal Reserve’s much-anticipated interest-rate decision later Wednesday. The pound strengthened after a surprise increase in UK inflation.
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The Stoxx Europe 600 Index was slightly lower, with rates-sensitive real estate stocks leading declines. Contracts for the S&P 500 and the tech-heavy Nasdaq 100 both retreated by at least 0.2%. A gauge of Asian equities advanced more than 1%.
All eyes will be on the Fed later as Chair Jerome Powell tries to balance his fight against inflation against a sudden banking crisis. The complexities confronting global central banks were underscored by data from the UK on Wednesday, showing inflation unexpectedly accelerated in February, surpassing all economists’ forecasts on the eve of a rates decision from the Bank of England.
The pound extended gains against the dollar as traders firmed up bets on a quarter-point hike by the BOE on Thursday and UK bonds fell. A Bloomberg index of dollar strength was little changed. Treasury yields fell slightly after a surge on Tuesday that added 19 basis points to the two-year maturity and 12 basis points to the 10-year benchmark.
Investors were again focused on UBS Group AG after the bank said Wednesday it wanted to buy back some of its euro-denominated senior unsecured bail-in notes. UBS shares rose for a third day following its rescue of Credit Suisse Group AG.
Traders placed greater odds that the Fed will raise interest rates 25 basis points after market pricing was split between a hike and a pause earlier in the week. Officials at the central bank were set to issue updated rate projections for the first time since December, offering guidance on whether they still expect any additional increases this year.
“The failures of banks that we’ve seen so far are idiosyncratic,” Yuting Shao, macro strategist for State Street Global Markets, said in an interview with Bloomberg Radio. She expects the Fed to increase interest rates by 25 basis points on Wednesday. “Once we look beyond the current volatility, restrictive policy staying for a bit longer is still warranted.”
Every stock in a measure of US financial heavyweights climbed Tuesday. Shares in First Republic Bank fell about 9% in after-hours trading after the stock surged almost 30% in its best day ever. The gain came amid optimism over a new plan under discussion to aid the regional lender. Further intervention to shore up the bank may include US government backing, people with knowledge of the situation said.
Read: Fed Caught Between Inflation and Bank Crisis: Decision-Day Guide
Still, many see more problems ahead. Michael Wilson, Morgan Stanley’s chief US equity strategist, said the risk of a credit crunch is increasing materially. Bank of America’s latest global survey that polled fund managers between March 10-16 showed a systemic credit event has replaced stubborn inflation as the key risk to markets.
West Texas Intermediate slid, trimming some of its gains from rallies on Monday and Tuesday. The energy sector led gains in Australian shares Wednesday, echoing the sector’s lead in the S&P 500 on Tuesday.
Ključni događaji ove sedmice:
US Treasury Secretary Janet Yellen to appear at Senate subcommittee hearing, Wednesday
FOMC rate decision, news conference from Chair Jerome Powell, Wednesday
EIA izvještaj o zalihama sirove nafte, srijeda
Povjerenje potrošača eurozone, četvrtak
Odluka BOE o kamatnoj stopi, četvrtak
Odluka o stopi Švicarske narodne banke i konferencija za novinare, četvrtak
Prodaja novih domova u SAD, početne prijave za nezaposlene, četvrtak
Američka ministarka finansija Janet Yellen svjedoči u četvrtak pododboru za aproprijacije Predstavničkog doma
Eurozona S&P Global Eurozone Manufacturing PMI, S&P Global Eurozone Services PMI, petak
Američka trajna roba, petak
Neki od glavnih poteza na tržištu:
Akcije
Stoxx Europe 600 pao je 0.1% u 8:23 ujutro po londonskom vremenu
Fjučersi S&P 500 pali za 0.3%
Nasdaq 100 fjučers pao 0.4%
Fjučersi na Dow Jones industrijskom prosjeku pali su za 0.3%
MSCI Azijsko-pacifički indeks porastao je 1.4%
Indeks MSCI Emerging Markets porastao je 0.9%
valute
Indeks Bloombergovog dolara se malo promijenio
Euro se malo promijenio na 1.0770 dolara
Japanski jen se malo promijenio na 132.47 po dolaru
Ofšor juan pao je 0.2% na 6.8924 za dolar
Britanska funta porasla je 0.5% na 1.2272 dolara
Kriptokutencije
Bitcoin je porastao 0.3% na 28,237.84 dolara
Eter je pao 0.4% na 1,794.66 dolara
obveznice
Prinos na desetogodišnje trezore opao je za tri bazna poena na 10%
Nemački 10-godišnji prinos porastao je za tri bazna poena na 2.32%
Britanski 10-godišnji prinos porastao je za 10 baznih poena na 3.47%
proizvodi
Nafta Brent pala je 0.4% na 75.02 dolara po barelu
Spot zlato poraslo je 0.2% na 1,944.02 USD za uncu
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Source: https://finance.yahoo.com/news/asian-stocks-rise-risk-trade-222007997.html