(Bloomberg) — US Treasuries dropped as markets pared last week’s rally ahead of fresh data this week that may show whether investors’ expectations of interest-rate cuts are overblown.
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Bond markets pulled back after last week’s blockbuster rally. Bitcoin surged past $41,000 and gold briefly touched an all-time high.
The 10-year Treasury yield added five basis points to 4.25% as traders prepared for a key week of data on the US labor market. Gold surpassed $2,130 an ounce before giving up gains for the day. US equity futures retreated, while European stocks steadied.
Investors are starting the week with a focus on a slew of economic reports that will reveal the state of the US labor market. The outcome should give an indication about whether markets have been prematurely excited about softer economic conditions paving the way for the Federal Reserve to cut interest rates.
The latest reading on US job openings (or JOLTS) for October is due to be published tomorrow, followed by ADP’s National Employment Report on Wednesday and non-farm payrolls on Friday.
Gold slid from its intraday high, trading around $2,063 an ounce. Bitcoin climbed past the $41,000 level to the highest since April 2022.
“As long as those rate conditions stay where they are, gold will remain supported over the next three to four weeks,” Eric Robertsen, global head of research and chief strategist at Standard Chartered Bank, said on Bloomberg Television.
Indian equities were headed for a fresh record after Prime Minister Narendra Modi’s victories in three key state elections boosted expectations of policy continuity.
Shares of distressed developer China Evergrande Group surged as much as 22% after a Hong Kong court again postponed a decision on whether the world’s most-indebted property developer should be wound up.
Key events this week:
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Riskbank November meeting minutes released, Monday
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US factory orders, durable goods, Monday
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Reserve Bank of Australia rate decision, Tuesday
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Japan’s Tokyo CPI, Tuesday
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China Caixin services PMI, Tuesday
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South Korea CPI, GDP, Tuesday
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Eurozone PMIs, Tuesday
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Australia GDP, Wednesday
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Eurozone retail sales, Wednesday
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Bank of Canada rate decision, Wednesday
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China trade, FX reserves, Thursday
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Eurozone GDP, Thursday
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Germany industrial production, Thursday
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US wholesale inventories, initial jobless claims, Thursday
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Japan household spending, GDP, Friday
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US non-farm payrolls, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 was little changed as of 8:56 a.m. London time
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S&P 500 futures fell 0.2%
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Nasdaq 100 futures fell 0.2%
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Futures on the Dow Jones Industrial Average fell 0.1%
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The MSCI Asia Pacific Index was little changed
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The MSCI Emerging Markets Index was little changed
Currencies
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The Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.2% to $1.0866
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The Japanese yen was little changed at 146.81 per dollar
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The offshore yuan fell 0.2% to 7.1399 per dollar
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The British pound fell 0.3% to $1.2667
Cryptocurrencies
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Bitcoin rose 4.9% to $41,686.58
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Ether rose 3.4% to $2,257.38
Bonds
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The yield on 10-year Treasuries advanced five basis points to 4.24%
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Germany’s 10-year yield was little changed at 2.36%
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Britain’s 10-year yield advanced two basis points to 4.16%
Commodities
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Brent crude fell 1.3% to $77.83 a barrel
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Spot gold fell 0.1% to $2,069.37 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael G. Wilson, Matthew Burgess and Joanna Ossinger.
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