(Bloomberg) Global markets were treading water on Friday before the release of US inflation data that could shift the narrative of the Federal Reserve’s fight against inflation. The US is expected to release its annual revisions to its consumer price index at 8:30 a.m. New York time. Last year, the update was significant enough to cast doubt on overall inflation progress and traders were speculating again that the recalculations might sway views over when the Federal Reserve will cut interest rates. “This could have important implications for the Fed,” wrote analysts at Rabobank in a research note. “It could increase or decrease the confidence that the FOMC has in a sustainable return to 2% inflation.” Europe’s Stoxx 600 and US stock-index futures were little changed. Ten-year Treasuries held steady, leaving their yield up about 15 basis points in the past five days. The next key data point will be the regular US inflation print due Tuesday. L’Oreal shares tumbled 7% as
(Bloomberg) European futures slipped, as investors remained cautious ahead of US inflation data and Asia settled into holiday mode for the Lunar New Year. US stock-index futures inched lower. The MSCI Asia Pacific Index fell 0.2%, though was still on track for its third weekly gain amid a flurry of stimulus announcements as China attempted to stem an equity market slump. Hong Kong’s Hang Seng Index and a measure of Chinese equities in Hong Kong dropped ahead of early closures, though both gauges are higher for the week thanks to a big gain on Tuesday on optimism around state support. “What we need in China in terms of catalysts is a large coordinated fiscal easing targeting demand,” Florian Neto, head of Asia multi-asset at Amundi Hong Kong Ltd., said on Bloomberg Television. “What we have is market stabilization, but it’s not tackling the fundamental issues in the Chinese economy.” Markets were shut for the holiday in mainland China, Taiwan, South Korea, Indonesia, the P
(Bloomberg) Wall Street struggled to gain traction on Thursday, with the bond market digesting another big sale of Treasuries and stocks hovering near records. Bonds fell despite a strong $25 billion auction that reduced jitters about an oversupply. Equities closed little changed after the S&P 500 briefly hit 5,000 for the first time. A sense of caution prevailed as investors positioned for Friday’s consumer-price index revisions thinking about what happened a year ago: The update was significant enough to cast doubt on overall inflation progress. “There is some talk that tomorrow’s CPI revisions could throw cold water on the recent good inflation numbers but this is a wonky number,” said Andrew Brenner at NatAlliance Securities. “We think the next move comes off the CPI number next Tuesday.” Ahead of those figures, investors got a jobless claims reading that added to evidence of a still strong labor market and gave credence to the recent cautious rhetoric from central
(Bloomberg) Global equities powered higher, with US futures pointing to another record for Wall Street, as investors continued to bet on falling interest rates and a strong earnings season. Europe’s Stoxx 600 index climbed 0.5%, with banking, real estate and tech stocks among those leading the advance. Futures contracts on the Nasdaq 100 index rose 0.6%, while those on the S&P 500 climbed 0.3%, after it became the last of the three major US equity benchmarks to reach a record closing high. Equity markets have shrugged off January’s rise in bond yields on optimism over the US economy’s resilience, conviction that central banks will start cutting interest rates later this year and signs the artificial-intelligence boom is set to continue. Meanwhile, results from a majority of S&P 500 companies have surprised positively during the latest earnings season. “We are heading into an environment where the economic slowdown seems to be more of a soft landing, at the same time we are ta
(Bloomberg) After a politics-heavy couple of days including JPMorgan boss Jamie Dimon telling US Democrats to “grow up” the focus shifted to finance on day four of the World Economic Forum and the mood so far has been positive. Carlyle Group’s David Rubenstein expects dealmaking to pick up after a likely cut in interest rates, with others optimistic about profits and expansion. Highlights still to come Thursday include a panel on uniting European markets with European Central Bank President Christine Lagarde and Deutsche Bank CEO Christian Sewing and a Bloomberg TV interview with UK Chancellor Jeremy Hunt. Bloomberg’s team of reporters is bringing you the highlights of what’s happening on the ground. You can sign up for our daily newsletter here. And if you’re in Davos, don’t forget to drop by Bloomberg House. Register here. (Times CET) Talk of the Town Buoyant Bankers (12:30 p.m.) It’s been a morning of upbeat messaging from finance executives with Goldman Sachs�