US stock futures are showing a slight decline as investors await the release of crucial inflation data from the Federal Reserve, which is expected to offer insights into the trajectory of interest rates. Meanwhile, Bitcoin continues its rally, surpassing the $63,000 mark.
In pre-market trading, contracts for the S&P 500 and the Nasdaq 100 are both down approximately 0.3%. European stocks, on the other hand, are edging higher amidst a busy earnings calendar. Moncler SpA sees a boost in its shares following better-than-expected profit results, while Air France-KLM experiences a slump after reporting losses in the fourth quarter. Anheuser-Busch InBev also dips after failing to meet analysts’ profit estimates.
Investors are closely watching the release of the US core personal consumption expenditure (PCE) gauge data later today, which is anticipated to shed light on the Fed’s challenges in achieving its 2% inflation target. Recent statements from central bank officials suggest a cautious approach to monetary policy adjustments, with no immediate plans for easing.
In Asia, equities see an uptick following a rebound in Chinese shares. The yen strengthens against the dollar after Bank of Japan Board Member Hajime Takata hints at the possibility of ending the negative interest rate policy.
Bitcoin’s upward momentum continues, fueled by renewed interest from exchange-traded funds, with the cryptocurrency reaching nearly $64,000. Treasury yields see a modest uptick after Wednesday’s bond rally.
New York Fed President John Williams underscores the ongoing battle against inflation, while Atlanta Fed chief Raphael Bostic urges patience regarding policy adjustments.
Market expectations indicate a likelihood of easing measures by year-end, aligning closely with officials’ projections from December. However, this forecast represents a significant shift from earlier in the year, reflecting evolving market sentiment.
Key economic events scheduled for the remainder of the week include German CPI and unemployment data, US consumer income and PCE deflator figures, and various speeches by Fed officials.
Market Moves:
- European stocks: Stoxx Europe 600 up 0.2%
- US stock futures: S&P 500 down 0.3%, Nasdaq 100 down 0.3%, Dow Jones down 0.2%
- Asia-Pacific equities: MSCI Asia Pacific Index up 0.4%
- Emerging markets: MSCI Emerging Markets Index up 0.1%
- Currencies: Bloomberg Dollar Spot Index down 0.2%, euro flat, yen up 0.7%, offshore yuan flat, pound flat
- Cryptocurrencies: Bitcoin up 4% to $62,973.92, Ether up 5.1% to $3,491.46
- Bonds: 10-year Treasury yield up one basis point to 4.27%, Germany’s 10-year yield flat, Britain’s 10-year yield down one basis point to 4.17%
- Commodities: Brent crude down 0.6% to $83.18 a barrel, spot gold flat
