Futures prices in the US and Europe fall as Asian stocks retreat: the market has come full circle

(Bloomberg) — U.S. and European stock futures fell along with Asian shares after China’s lower mortgage rates failed to ease concerns about the world’s No. 1 mortgage lender. 2 Economy.

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Benchmark contracts for the S&P 500 and Nasdaq 100 fell after U.S. markets were closed for the holiday Monday. Futures on the region-wide Euro Stoxx 50 index also fell, with the Asian stock benchmark falling for the first time in four sessions.

Benchmarks for Japan, Australia and South Korea were all in the red. The Nikkei 225 Stock Average and world stock index were both about 1% away from their record highs.

All eyes have been on China, where stock prices have fluctuated after domestic banks cut key mortgage reference interest rates by record amounts, but this comes as the country ramps up support for its real estate sector in a bid to revive demand. This is a sign that China’s development stock index rose.

Willer Chen, an analyst at Forsyth Barr Asia, said the five-year loan prime rate cut was “a good gesture by commercial banks, but the real estate issue is still not about mortgage rates.” Demand for real estate will increase, but we cannot expect much. ”

Chinese stocks’ gains on Monday fell short of expectations in the first trading session after the Lunar New Year holiday. Increased trading volumes in several domestic exchange-traded funds (ETFs) provided a clue that government-backed funds continue to support the market.

“Confidence is low at the moment and needs to be stabilized,” Mo Siong Sim, a currency strategist at the Bank of Singapore, said on Bloomberg TV about China’s recent economic support measures. “Monetary policy is easing, which is likely to put downward pressure on Chinese government bond yields,” he said.

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turning point

As investors try to gauge the strength of the global economy, profits reported Wednesday by flagship Nvidia Inc. could provide fresh impetus to stock markets. The semiconductor giant has surpassed Amazon.com Inc.’s market capitalization on hopes that it will be a big winner in the development of artificial intelligence.

“Nvidia’s results on Wednesday could be a turning point for the market,” Charles Henry Montchaux, Banc Sys’ chief investment officer, said on Bloomberg TV. “There are very few large-cap growth stocks that the market relies on, and there is a risk of a pullback if they fail to meet expectations for any reason.”

In Australia, BHP Group, the world’s largest mining company, reported underlying profits of $6.57 billion, below consensus expectations, and despite a weak housing market, demand from top customer China He said it was healthy.

In other corporate news, Capital One Financial Corp. has agreed to acquire Discover Financial Services in a $35 billion all-stock deal, creating the largest U.S. credit card company by loan value.

Other potential catalysts for markets this week include the Fed’s January meeting minutes to be released on Wednesday and euro zone inflation data to be released on Thursday.

Elsewhere, gold was little changed after rising slightly on Monday to trade around $2,020 an ounce. West Texas Intermediate crude oil prices rose slightly due to continued tensions in the Red Sea, a key trade route.

Some of this week’s main events:

• The European Central Bank releases an indicator of euro area bargained wage rates on Tuesday

• Rio Tinto Plc earnings, Wednesday

• Eurozone consumer confidence Wednesday

• Nvidia Corp Wednesday’s earnings

• US Federal Reserve Board (FRB) January Meeting Minutes, Wednesday

• Atlanta Fed President Rafael Bostic speaks Wednesday

• Eurozone CPI, PMI, Thursday

• European Central Bank publishes report of January 25 meeting on Thursday

• Fed President Lisa Cook and Minneapolis Fed President Neel Kashkar speak on Thursday

• Chinese real estate prices Friday

• European Central Bank Board Member Isabel Schnabel speaks on Friday

The main movements in the market are:

stock

• S&P 500 futures were down 0.2% as of 3:27 p.m. Tokyo time.

• Nasdaq 100 futures fell 0.2%

• S&P/Australian Stock Exchange 200 futures little changed

• Hong Kong’s Hang Seng hasn’t changed much.

• The Shanghai Composite rose 0.3%.

• Euro Stoxx50 futures fall 0.3%

currency

• Bloomberg Dollar Spot Index little changed

• The euro was almost unchanged at $1.0771.

• The Japanese yen fell 0.2% to 150.38 yen to the dollar.

• The offshore yuan was little changed at 7.2087 yuan to the dollar.

cryptocurrency

• Bitcoin is little changed at $51,927.38

• Ether fell 1.2% to $2,931.12.

bond

• The 10-year Treasury yield rose 2 basis points to 4.30%.

• Japan’s 10-year bond yield remains unchanged at 0.725%

• The Australian 10-year bond yield rose one basis point to 4.18%.

merchandise

• West Texas Intermediate crude rose 0.4% to $79.49 per barrel.

• Spot gold rose 0.1% to $2,019.48 an ounce.

This article was produced in partnership with Bloomberg Automation.

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