Global Equities, Mixed Currencies; Treasuries Rally: Markets Wrap

(Bloomberg) — Global stocks and currencies were mixed on Friday amid a subdued tone in markets. Treasuries rose as trade resumed after the U.S. Thanksgiving holiday.

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Futures contracts for the S&P 500 and Nasdaq 100 rose after recent comments from Federal Reserve officials supporting a slower pace of interest rate hikes. European stock futures fell.

Hong Kong-listed technology stocks led declines among Chinese shares as investors weighed recent gains against a surge in Covid-19 infections. Mainland measures were able to make small gains amid restrictions such as the lockdown affecting parts of Beijing.

The dollar was unchanged after three days of losses.

US markets will have a shortened session on Friday after being closed for the day on Thursday.

The yield on Japan’s 10-year bond rose a basis point to 0.25%, the top of the central bank’s target band, after Tokyo’s inflation accelerated to the fastest pace in 40 years.

Malaysia’s ringgit extended a rally as the appointment of a new prime minister eased the political gridlock that has plagued the nation since the last election.

The gain rose after the central bank chief said he needed to see signs of strong inflation under control before discussing the prospect of moving away from policy tightening.

Despite the current flare-up of virus cases, the outlook for Chinese markets is improving, according to Jun Bei Liu, portfolio manager at Tribeca Investment Partners.

“Everything will improve in the next 12 months. We’ve seen this playbook before in other economies,” he said on Bloomberg Television. “In the next few quarters, we will start to see outperformance very soon.”

Oil is headed for a third straight week of losses as the European Union imposes a higher-than-expected price cap on Russian crude flows and concerns of a slowdown threaten the outlook for energy demand.

Gold was poised for a modest weekly gain.

Some of the major movements in the markets are:

Shares

  • S&P 500 futures were up 0.2% at 6:55 a.m. London time

  • Nasdaq 100 futures rose 0.4%.

  • The Hang Seng index fell 0.4%

  • The Shanghai Composite Index rose 0.4%

  • Euro Stoxx 50 futures were little changed

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was slightly changed to $1.0419

  • The Japanese yen was unchanged at 138.54 per dollar

  • The offshore yuan was little changed at 7.1664 per dollar

Cryptocurrencies

  • Bitcoin fell 0.8% to $16,413.36

  • Ether fell 1.2% to $1,181.61

Bonds

  • The yield on the 10-year Treasury note fell four basis points to 3.66%.

  • Japan’s 10-year yield was 0.25%

  • Australia’s 10-year yield rose three basis points to 3.57%.

Commodity

This story was produced with assistance from Bloomberg Automation.

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