NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

U.S. Futures, Stocks Swing; Bonds Rise After ECB: Markets Wrap

Published 12/12/2019, 08:08 AM
Updated 12/12/2019, 08:35 AM
U.S. Futures, Stocks Swing; Bonds Rise After ECB: Markets Wrap
EUR/USD
-
GBP/USD
-
USD/CHF
-
USD/TRY
-
ESZ24
-
CL
-
US10YT=X
-
STOXX
-
2222
-

(Bloomberg) -- U.S. equity futures fluctuated alongside stocks in Europe on Thursday as investors digested the latest signals from some of the world’s major central banks. The euro held steady and bonds in the region climbed as European policy makers kept rates unchanged.

Contracts on the S&P 500 index swung from a gain to a loss a day after the underlying gauge rose for the first time this week in the wake of the Federal Reserve’s final policy gathering of the year. The yield on 10-year Treasuries fluctuated around 1.8% amid bets the bar will be high for any future U.S. rate hikes.

The Stoxx Europe 600 Index reversed an earlier advance. Government bond yields in the region dropped and the euro was little changed after the ECB said it would maintain bond buying and keep rates low until it gets near its inflation goal. The Swiss franc fluctuated after Switzerland’s central bank left rates unchanged and reiterated a threat to intervene in currency markets if needed. The pound reversed a gain as voting in the U.K. general election continued.

The Fed’s outlook was taken as mildly bullish on Wednesday for both Treasuries and stocks, while the ECB’s dovish outlook was widely anticipated. Thursday may also bring news on the outlook for a trade deal between the U.S. and China, as President Donald Trump is expected to meet with his team, according to people familiar with the talks.

“The fact is the big event risk remains in place, with the world watching to see if the 15% tariffs kick in,” Chris Weston, head of research at Pepperstone Group Ltd., said in a note Thursday. “What the Fed has delivered is about as much as we could have hoped for in this period.”

Earlier in the day, equities in Hong Kong and Seoul outperformed, while they slipped in Tokyo, Shanghai and Sydney. The Hong Kong dollar climbed into the stronger half of its trading band against the greenback for the first time since July. In the Middle East, Saudi Aramco (SE:2222) shares jumped for a second day, pushing the oil giant’s value beyond the $2 trillion mark.

Elsewhere, oil futures rose. The lira gained as the Turkish central bank delivered another interest-rate cut that exceeded forecasts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.