China stocks gained on an official signaled potential spending plans, while shares in other Asian markets fell after disappointing US earnings reports and Federal Reserve pushback on interest-rate-cut expectations. China’s CSI 300 swung to gains after a four-day slump, while Hong Kong’s Hang Seng Index advanced after a two-day decline. The Caixin manufacturing PMI gauge came in as expected, in expansion territory, and an official in Beijing said the government would set a “reasonable” size for investment. Shares in Australia and Japan slipped after the S&P 500 fell 1.6%, the most since September. Aozora Bank Ltd. fell 21% in Tokyo after it announced losses tied to US commercial property, echoing troubles for New York Community Bancorp in America. Contracts for US equities edged higher, with Nasdaq 100 futures outperforming, after Big Tech stalwarts like Microsoft Corp. and Alphabet Inc. led losses on Wall Street Wednesday. European contracts declined. Speaking after the Fed decision, Chair Jerome Powell said he doesn’t think it’s likely the central bank will ease policy in March. In a sign that officials are not in a hurry to lower rates, the central bank also said it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.” Treasuries held most of their gains in Asian trading. The yield on the 10-year note fell 12 basis points in the previous session after Powell’s comments and amid the fresh concerns about regional lenders. A gauge of dollar strength edged lower, while the yen led gains among its Group-of-10 peers. A separate report from the ADP Research Institute showed companies added a smaller-than-expected 107,000 jobs in January, and worker pay growth slowed. The market has been too quick to dismiss the threat posed by inflation after a “miraculous” decline toward central bank targets, said Greg Peters at PGIM Fixed Income. He’s worried that the hardest part of the fight against inflation is still ahead, implying more market volatility and a potential wake-up call for bondholders betting on deep interest-rate cuts this year. Despite Wednesday’s losses, the S&P 500 and a gauge of global stocks advanced a third straight month last month. As goes January, so goes the year. That’s the theory of a phenomenon known as the “January Barometer” — Wall Street folklore positing that if stocks rise in that month, they’ll be poised to finish the year higher, and vice versa. Since 1938, the Barometer has been right about 74% of the time, with the next 11 months higher 67% of the time, according to the Stock Trader’s Almanac. In commodities, oil was mostly unchanged in Asia trading but capped its first monthly gain since September amid tensions in the Middle East. Gold advanced for a fourth consecutive day. US After Hours NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% higher on earnings; MXL -11.1%, CNMD -9.6%, QCOM -1.4% lower on earnings.
Nikkei -0.85% Hang Seng +0.90% CSI +0.48% Shanghai -0.17% Shenzen -0.05%
Eur$ 1.0849 CNH 7.1884 CNY 7.1787 JPY 146.80 GBP 1.2676 CHF 0.8636 RUB 89.8547 TRY 30.3667 WTI$ 76.16 +0.41% Gold 2,046 +0.30% BTC 42,035 -1% ETH 2,265 -0.60%
S&P +0.17% Nasdaq +0.30% EuroStoxx -0.30% FTSE -0.37% Dax -0.37% SMI
Macro :
- Fed Keeps Rates Steady While Powell Says March Cut Unlikely
- Gundlach Sees Grim Outlook for US Economy After Fed Decision
- Trump Says He Would Seek to Block Nippon Steel-US Steel Deal
Keep an eye on :
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- ADS GY : Adidas Sees 2024 Operating Profit About EU500M, Est. EU1.27B
- AC FP : Travel + Leisure Enters Pact to Buy Accor Vacation Club
- AIR FP : Airbus Appoints New Chief Operating Officer for China Operations
- AS US : Arc’teryx Maker Amer Gets $1.37 Billion in Below-Range IPO
- AXFO SS : Axfood Profit Beats Estimates; to Open 10-15 Stores in 2024
- BABA US : Alibaba Said to Weigh Sale of Mall Chain in Latest Overhaul Step
- BG AV : Bawag to Buy Knab From ASR Nederland for EU510m
- BALN SW : Baloise, RGA Agree on Reinsurance Transaction of Belgium Assets
- BNP FP : BNP Paribas Restates 9 Month Distributable Net Income
- DSY FP : Dassault Systemes Sees 1Q Non-IFRS Rev Ex-FX +7% to +8%
- DBK GY : Deutsche Bank’s Investment Arm Reports Fourth Quarter of Inflows
- DIS US : *DISNEY IN PRELIM PACT TO SELL 60% OF INDIA UNIT TO VIACOM18:WSJ
- DSV DC : DSV 4Q Ebit Before Significant Items Misses Estimates
- DWS GY : DWS 4Q Net Inflows Beats Estimates, Plans Special Div. €4/Shr
- ELUXB SS : Electrolux Professional 4Q Ebit Beats Estimates
- ENI IM : Eni Says Acquisition of Neptune Has Been Completed
- EPR NO : Europris 4Q Revenue Misses Estimates
- GLJ GY : Grenke to Sell Factoring Companies, Focus on Leasing Business
- INGA NA : ING 4Q Net Interest Income Misses Estimates
- BAER SW : Julius Baer FY Net Inflows Misses Estimates
- KOA NO : Kongsberg Automotive Names Nyquist-Evenrud as President, CEO
- OMV AV : OMV 4Q Net Beats Estimates, Russian Gas Supplies Continue (1)
- OVS IM : OVS Reports ‘Slight Improvement’ to 2023 Prelim Adj. EBITDA
- PHIA NA : FDA Gets 176 New Death Reports in Philips Sleep Apnea Recall
- PUB FP : Roku is set to announce Publicis exec Jay Askinasi as its next ad sales boss
- RNO FP : Dealmaking Stellantis CEO Is Ready to Seize on Renault’s Setback
- RKLB US : Rocket Lab Said to Offer $275m Convertible at 3.75%-4.25% Coupon
- SAN FP : Sanofi 4Q Business EPS Misses Estimates
- SDZ SW : Sandoz Proposes Ex-Unilever CFO Pitkethly for Election to Board
- SHL GY : Siemens Healthineers 1Q Adjusted Ebit Misses Estimates
- WAF GY : Siltronic 4Q Ebitda Meets Estimates
- SW FP : Pluxee Stock Reference Price Set at €26 Per Share: Euronext
- STERV FH : Stora Enso 4Q Sales Misses Estimates
- VIV FP : Canal+ Makes Offer for MultiChoice, Potentially at 105 Rand/Shr
- VLTSA FP : Voltalia 4Q Revenue EU170.0M Vs. EU142M Y/y
- VOLCARB SS : Volvo Car to Stop Funding Polestar, May Distribute Shares
- X US : Trump Says He Would Seek to Block Nippon Steel-US Steel Deal