U.S. Futures Rise As Volatile Quarter Ends: Markets Close


(Bloomberg) – US index futures rose as optimism grew Washington will avoid a government shutdown and central bankers have reiterated high inflation is transitory.

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December contracts on the S&P 500 index rose 0.4% as declining buyers returned to equity markets after Tuesday’s worst sell-off since May 12. Oil and gas companies were the center of attention as Pioneer Natural Resources Co. and Valero Energy Corp. York. The dollar wiped out losses and Treasury yields edged up.

A deal among U.S. lawmakers to expand government funding removes uncertainty from a litany of risks investors are content with, ranging from slowing China’s growth to crumbling the Federal Reserve. Fed Chairman Jerome Powell and his European counterpart Christine Lagarde reiterated their view that high inflation is transient, seeking to allay a major concern that has boosted bond yields and depressed equity valuations.

“An agreement extending government funding to the United States, improved Chinese purchasing managers’ indices and assurances from major central bankers that they are still confident about their transitory inflation story have brought some relief and paved the way for a more positive tone in the markets, ”wrote Silvia Dall’Angelo, senior economist at Federated Hermes, in a note.

Global stocks are set to end the quarter with a slight loss, after a five-quarter rally, as investors prepare for the Fed to end its stimulus measures. They also remain concerned about slowing growth and high inflation, supply chain bottlenecks, an energy crisis and regulatory risks emanating from China. A majority of respondents to a Citigroup Inc. survey said a 20% drop in stocks was more likely than a 20% rally.

At the same time, some investors believe stocks may rise, albeit against a backdrop of volatility, as they view inflationary risks as temporary and bank on post-pandemic growth. They buy stocks after every significant drop.

These bearish buying continued on Thursday. In Europe, the gauge of Stoxx 600 stocks reduced a monthly loss. Miners led the gains as iron ore rose.

Oil has fluctuated between gains and losses, still heading towards a monthly advance amid tighter supplies. West Texas Intermediate futures briefly regained the above $ 75 a barrel level before trading at $ 74.37. Pioneer and Valero were up at least 1.5% in early New York trading.

Senate Majority Leader Chuck Schumer said on Wednesday lawmakers reached an agreement to avoid a government shutdown on Friday, extending government spending until December 3. Earlier, Powell and his counterparts in Japan, Europe and the UK expressed cautious optimism about lifting supply chain disruptions. inflation rates around the world would eventually prove to be temporary.

“The stock markets are supported by the belief that the government and the Fed have the problems under control,” said Sébastien Galy, senior macro-strategist at Nordea Investment Funds. “Yes, there are a series of shocks seeping into the economy, but it’s a well-managed process. “

Here are some events to watch this week:

  • House Financial Services Committee hearing on the Fed and the Treasury’s response to the pandemic, Thursday

  • Univ. of Michigan sentiment, Manufacturing ISM, US construction spending, spending / personal income, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:


  • S&P 500 futures rose 0.4% at 7:35 a.m. New York time

  • Futures on the Nasdaq 100 rose 0.5%

  • Futures contracts on the Dow Jones Industrial Average rose 0.4%

  • The Stoxx Europe 600 is up 0.3%

  • The MSCI World Index has changed little


  • The Bloomberg Dollar Spot Index changed little

  • The euro fell 0.2% to $ 1.1577

  • The British pound rose 0.1% to $ 1.3444

  • The Japanese yen was little changed at 112.02 per dollar


  • The yield on 10-year Treasuries rose 1 basis point to 1.53%

  • The German 10-year yield was little changed at -0.21%

  • UK 10-year yield rose three basis points to 1.02%


  • West Texas Intermediate crude fell 0.8% to $ 74.24 a barrel

  • Gold futures rose 0.1% to $ 1,724.80 an ounce

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