(Bloomberg) — U.S. bonds and stock futures continued their decline as traders braced for a slate of data that could show whether bets on interest rate cuts this year are justified.
Most read by Bloomberg
The 10-year Treasury yield rose to 3.97% and S&P 500 futures fell 0.4%. The dollar rose for a fourth day, the longest since November. Nvidia Corp. fell in premarket US trading as investors continued to pull out of technology stocks.
U.S. markets are expected to extend their declines from Tuesday, which marked the biggest global decline since 1999 for the first full day of trading in a year. Minutes from the Federal Reserve's latest meeting as well as economic data on manufacturing and job vacancies are expected later in the day.
“It's a data-filled week – we have logs, we have payrolls, we have ISM,” said Adarsh Sinha, co-head of Asia FX & Rates Strategy at Bank of America Corp. on Bloomberg Television. “It's only natural for investors to reduce some risk in some of the heavily crowded businesses as the year draws to a close.”
In the two-day decline this year, British long-dated bonds were hit hardest. UK 30-year government bond yields rose 14 basis points, more than their US and German counterparts.
Investors are dumping long-term government bonds to free up cash before the UK sells new debt that may have a higher coupon.
In Asia, the regional benchmark MSCI fell 1.2%, posting its biggest decline since November, as investors sold technology stocks.
Important events this week:
US FOMC minutes, ISM Manufacturing, jobs, light vehicle sales, Wednesday
Richmond Fed President Tom Barkin – a FOMC voter in 2024 – speaks on Wednesday
China Caixin Services PMI, Thursday
Eurozone S&P Global Eurozone Services PMI, Thursday
US initial jobless claims, ADP employment, Thursday
Eurozone CPI, PPI, Friday
US Non-Farm Payrolls/Unemployment, Factory Orders, ISM Services Index, Friday
Richmond Fed President Tom Barkin – a FOMC voter in 2024 – speaks on Friday
The story goes on
Some of the key moves in the markets:
Shares
The Stoxx Europe 600 fell 0.8% at 11:52 a.m. London time
S&P 500 futures fell 0.3%
Nasdaq 100 futures fell 0.4%
Futures on the Dow Jones Industrial Average fell 0.3%
The MSCI Asia Pacific Index fell 1.2%
The MSCI Emerging Markets Index fell 1.3%
Currencies
The Bloomberg Dollar Spot Index rose 0.3%
The euro fell 0.2% to $1.0920
The Japanese yen fell 0.6% to 142.88 per dollar
The offshore yuan fell 0.1% to 7.1574 per dollar
The British pound was little changed at $1.2627
Cryptocurrencies
Bitcoin fell 2.1% to $44,194.01
Ether fell 1.6% to $2,328.43
Tie up
The 10-year Treasury yield rose four basis points to 3.97%
The yield on 10-year German government bonds has hardly changed at 2.07%
The 10-year UK government bond yield rose one basis point to 3.65%
raw materials
Brent crude oil was little changed
Spot gold fell 0.5% to $2,049.40 an ounce
This story was produced with support from Bloomberg Automation.
– With support from Joanna Ossinger, Tassia Sipahutar and Pearl Liu.
Most read by Bloomberg Businessweek
©2024 Bloomberg LP