(Bloomberg) — Stocks moved modestly as investors remained cautious ahead of U.S. data that could provide an indicator of whether recent gains have gone too far.
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European stocks fell slightly after Monday's decline in the S&P 500 index, while U.S. futures rose. U.S. Treasuries were flat, but the dollar weakened against the Group of Ten (G10) nations. MSCI's Asian stock index maintained modest gains as stock prices rose in Hong Kong and Japan but fell in Australia and Taiwan.
Concerns grew this week about the discrepancy between earnings estimates and stock prices. U.S. durable goods and consumer confidence indexes are scheduled to be released today ahead of the government's closely watched consumer spending price index on Friday, when many markets are closed for the Easter holiday. U.S. Federal Reserve Chairman Jerome Powell is also scheduled to speak on the same day.
“We continue to see sentiment remain tense and think a U.S. stock market pullback is premature,” said Lori Calvasina of RBC Capital Markets.
Strategists at Morgan Stanley and JPMorgan Chase & Co. recently warned that high valuations are difficult to justify unless they are accompanied by accelerating corporate profits. The S&P 500 is up nearly 10% this year on a combination of healthy U.S. economic data, expectations for Fed interest rate cuts and optimism about artificial intelligence.
Separately, the Financial Times quoted Chief Investment Officer Andrew Boles as saying Pimco had a smaller-than-usual holding position in U.S. Treasuries and was prioritizing bonds from countries such as the UK and Canada. Quoted. Pimco believes inflationary pressures could cause the Federal Reserve to cut interest rates more slowly than other major central banks, according to the report.
In Asia, Japan's Finance Minister Shunichi Suzuki said on Tuesday that the government would take appropriate measures against excessive currency fluctuations without ruling out any measures.
The dollar-yen pair is likely to remain above 150 yen, said Mitul Koteka, head of foreign exchange and emerging markets macro strategy Asia at Barclays Bank in Singapore.
“Intervention depends on when we get past a really big step,” he said on Bloomberg TV. “If we start to break through big levels like, say, 155 or 160, you can imagine that the Japanese authorities will become even more aggressive.”
The offshore yuan rose for a second straight day after the People's Bank of China strengthened its support for the currency.
Read more: U.S. CEOs extend stay in China following last-minute invitation to Xi meeting
Oil prices were little changed after posting their biggest rise in a week as OPEC+ was expected to confirm production cuts amid tensions between the Middle East and Russia. Gold is hovering near all-time highs.
This week's main events:
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ECB Chief Economist Philip Lane attends an event in Dublin on Tuesday
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US Durable Goods, Conference Board Consumer Confidence, Tuesday
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China's industrial profits Wednesday
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Bank of England releases minutes of Monetary Policy Committee meeting on Wednesday
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Eurozone economic confidence, consumer confidence, Wednesday
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Fed Director Christopher Waller speaks on Wednesday
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UK GDP revised figures Thursday
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University of Michigan Consumer Sentiment, Number of New Unemployment Insurance Claims, GDP, Thursday
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Japan's unemployment rate, Tokyo CPI, industrial production, retail sales, Friday
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US Personal Income and Expenditures, PCE Deflator, Friday
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Good Friday. Exchanges in the United States and many other countries were closed due to public holidays. The US federal government is open.
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San Francisco Fed President Mary Daley speaks on Friday
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Federal Reserve Chairman Jerome Powell speaks on Friday
The main movements in the market are:
stock
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As of 8:09 a.m. London time, the Stoxx European 600 was down 0.1%.
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S&P 500 futures rose 0.2%
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Nasdaq 100 futures rose 0.3%
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Dow Jones Industrial Average futures little changed
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MSCI Asia Pacific Index rose 0.3%
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MSCI Emerging Markets Index rose 0.4%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0842.
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The Japanese yen was almost unchanged at 151.27 to the dollar.
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The offshore yuan was almost unchanged at 7.2478 yuan to the dollar.
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The British pound was almost unchanged at $1.2647.
cryptocurrency
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Bitcoin fell 0.3% to $70,753.54.
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Ether rose 0.7% to $3,653.99
bond
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The 10-year government bond yield was almost unchanged at 4.24%.
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German 10-year bond yield remains unchanged at 2.37%
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UK 10-year bond yield remains unchanged at 3.98%
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Jason Scott.
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