Waller’s Hawkish Stance Checks US Stock Rebound - Europe Market Wrap
A powerful rebound in US stocks lost momentum after Federal Reserve Governor Christopher Waller backed an interest-rate hike in December, just hours ahead of Tuesday’s inflation report. S&P 500 futures were little changed after the index posted its strongest daily gain since April, while Nasdaq 100 futures fell 0.3%. Nvidia was also little changed, holding on to losses following renewed controversy surrounding Chief Executive Officer Jensen Huang. Oil briefly fell below $90 a barrel for the first time since August as optimism grew over the prospect of a Middle East peace deal. Treasuries initially rallied as lower oil prices eased inflation concerns, but the gains faded after Waller said he supported a quarter-point rate increase next month and remained open to a larger move. Two-year yields rose five basis points as traders moved to fully price in a December hike, while longer-dated yields declined. The dollar was little changed. Elsewhere, MSCI’s gauge of Asian equities rose 1.9%, tracking Monday’s gains on Wall Street. Europe’s Stoxx 600 advanced 0.8%, led by gains in banks and industrial stocks.
A powerful rebound in US stocks lost momentum after Federal Reserve Governor Christopher Waller backed an interest-rate hike in December, just hours ahead of Tuesday’s inflation report. S&P 500 futures were little changed after the index posted its strongest daily gain since April, while Nasdaq 100 futures fell 0.3%. Nvidia was also little changed, holding on to losses following renewed controversy surrounding Chief Executive Officer Jensen Huang. Oil briefly fell below $90 a barrel for the first time since August as optimism grew over the prospect of a Middle East peace deal.
Treasuries initially rallied as lower oil prices eased inflation concerns, but the gains faded after Waller said he supported a quarter-point rate increase next month and remained open to a larger move. Two-year yields rose five basis points as traders moved to fully price in a December hike, while longer-dated yields declined. The dollar was little changed. Elsewhere, MSCI’s gauge of Asian equities rose 1.9%, tracking Monday’s gains on Wall Street.
Europe’s Stoxx 600 advanced 0.8%, led by gains in banks and industrial stocks.