by (Bloomberg) — Stocks and bonds stabilized after a painful two-day selloff to start 2024. Oil advanced as conflict in the Middle East added to supply concerns.
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The European Stoxx 600 index added 0.4% with Shell Plc and BP Plc rising after crude jumped more than 4% in two sessions. Next Plc rose after the British home and clothing retailer raised its earnings forecast. US stock futures also rose. The 10-year Treasury bond yield was little changed at 3.93%.
Attention now turns to US jobs data coming out on Friday as investors look for more clues about the timing of potential interest rate cuts this year. On Wednesday, minutes from the Fed’s December meeting indicated that interest rates may remain at restrictive levels “for some time.”
“There has been a bit of a ‘dry January’ syndrome in the markets in these last two sessions,” said Vincent Govins, global market strategist at JP Morgan Asset Management. “The outlook for equity markets remains positive.”
Geopolitics remained in focus as escalating tensions in the Middle East and supply disruptions in Libya sent oil prices up more than 1% on Wednesday. Iran said the attacks, which killed nearly 100 people in the country, were carried out to punish its stance against Israel.
In Europe, French inflation rose on a monthly basis, less than economists expected, and investors will be watching the reading from Germany later on Thursday. Eurozone figures are scheduled to be released on Friday. There was no significant change in the yields on French and German bonds.
Chinese stocks remained the biggest drag in Asia after a report showed wages paid to Chinese workers in major cities fell by the most on record.
Meanwhile, Chinese government bond yields fell to their lowest level in more than three years, while the yuan stabilized offshore. The People’s Bank of China weakened its currency stabilization on Wednesday by the most in more than six months, a sign that policymakers may have shifted their focus from stabilizing the currency to easing monetary restrictions.
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Eurozone, S&P Global Eurozone Services PMI, Thursday
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US Initial Jobless Claims, ADP Employment, Thursday
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Eurozone CPI, Producer Price Index, Friday
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US Nonfarm Payrolls/Unemployment, Factory Orders, ISM Services Index, Friday
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Richmond Fed President Tom Barkin — an FOMC elector in 2024 — speaks Friday
Some key movements in the markets:
Stores
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The Stoxx Europe 600 Index was up 0.4% as of 9:23 a.m. London time
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S&P 500 futures rose 0.1%
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Nasdaq 100 futures rose 0.2%
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Dow Jones Industrial Average futures were little changed
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MSCI Asia Pacific Stock Index rose 0.2%
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MSCI Emerging Markets Index rises 0.2%
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%.
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The euro rose 0.3 percent to $1.0954
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The Japanese yen fell 0.3 percent to 143.76 yen to the dollar
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The yuan in external transactions rose 0.1 percent to 7.1576 per dollar
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The British pound rose 0.2 percent to $1.2695
Digital currencies
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Bitcoin rose 0.2% to $43,009.52
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Ethereum fell 0.2% to $2,222.81
Bonds
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The yield on 10-year Treasury bonds rose two basis points to 3.93%.
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The German 10-year bond yield rose 1 basis point to 2.04%.
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There was little change in the yield on British bonds for 10 years at 3.65%.
Goods
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Brent crude rose 1.3 percent to $79.30 a barrel
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Gold in spot transactions rose 0.3 percent to $2,047.32 per ounce
This story was produced with assistance from Bloomberg Automation.
-With assistance from Julian Ponthus.
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