Berliner Boersenzeitung - US, European stocks mixed as data comforts rate-cut bets

EUR -
AED 4.102105
AFN 75.943776
ALL 98.559302
AMD 432.564919
ANG 2.012493
AOA 1053.718626
ARS 1078.246379
AUD 1.615995
AWG 2.013058
AZN 1.903018
BAM 1.956263
BBD 2.254705
BDT 133.431563
BGN 1.95567
BHD 0.420474
BIF 3227.592984
BMD 1.116814
BND 1.432422
BOB 7.716309
BRL 6.068661
BSD 1.116649
BTN 93.443216
BWP 14.597564
BYN 3.654164
BYR 21889.557957
BZD 2.250874
CAD 1.510324
CDF 3199.673034
CHF 0.93949
CLF 0.036393
CLP 1004.183913
CNY 7.830771
CNH 7.796932
COP 4662.174305
CRC 579.581211
CUC 1.116814
CUP 29.595576
CVE 110.844247
CZK 25.143401
DJF 198.480656
DKK 7.45943
DOP 67.511856
DZD 147.632829
EGP 53.951777
ERN 16.752213
ETB 133.128577
FJD 2.438568
FKP 0.85052
GBP 0.835251
GEL 3.038171
GGP 0.85052
GHS 17.612595
GIP 0.85052
GMD 76.506072
GNF 9640.902719
GTQ 8.637546
GYD 233.589897
HKD 8.680271
HNL 27.775602
HRK 7.593232
HTG 147.162717
HUF 397.072547
IDR 16891.646973
ILS 4.130236
IMP 0.85052
INR 93.498064
IQD 1463.026578
IRR 47023.461504
ISK 150.960204
JEP 0.85052
JMD 175.431498
JOD 0.791491
JPY 158.761881
KES 144.069421
KGS 94.039997
KHR 4539.850039
KMF 493.213107
KPW 1005.13213
KRW 1463.356082
KWD 0.34064
KYD 0.930595
KZT 535.615475
LAK 24662.053383
LBP 100066.551049
LKR 333.41887
LRD 216.410712
LSL 19.192495
LTL 3.297662
LVL 0.67555
LYD 5.294124
MAD 10.82556
MDL 19.447167
MGA 5082.621727
MKD 61.575479
MMK 3627.368897
MNT 3794.934539
MOP 8.941976
MRU 44.354319
MUR 51.318034
MVR 17.154688
MWK 1938.789804
MXN 22.01096
MYR 4.606902
MZN 71.336549
NAD 19.192495
NGN 1863.393714
NIO 41.102919
NOK 11.731184
NPR 149.506067
NZD 1.761259
OMR 0.429471
PAB 1.116634
PEN 4.187052
PGK 4.437666
PHP 62.551688
PKR 310.143432
PLN 4.278011
PYG 8716.061777
QAR 4.066042
RON 4.979097
RSD 117.161668
RUB 105.231058
RWF 1487.59649
SAR 4.189354
SBD 9.261119
SCR 14.79953
SDG 671.767835
SEK 11.26907
SGD 1.429415
SHP 0.85052
SLE 25.516192
SLL 23419.029236
SOS 637.701275
SRD 34.286758
STD 23115.798718
SVC 9.770311
SYP 2806.029064
SZL 19.192494
THB 36.151687
TJS 11.881355
TMT 3.90885
TND 3.394561
TOP 2.615695
TRY 38.121675
TTD 7.585372
TWD 35.28057
TZS 3048.90309
UAH 45.967974
UGX 4125.289807
USD 1.116814
UYU 46.821075
UZS 14225.424679
VEF 4045718.043587
VES 41.120607
VND 27484.797006
VUV 132.590423
WST 3.124246
XAF 656.162155
XAG 0.035308
XAU 0.000421
XCD 3.018247
XDR 0.826043
XOF 657.249161
XPF 119.331742
YER 279.566552
ZAR 19.115571
ZMK 10052.671816
ZMW 29.530836
ZWL 359.613711
  • RBGPF

    64.7500

    64.75

    +100%

  • SCS

    0.0400

    13.25

    +0.3%

  • BCC

    1.1800

    141.49

    +0.83%

  • GSK

    -0.1900

    40.71

    -0.47%

  • CMSC

    0.0300

    25.14

    +0.12%

  • RIO

    0.4800

    71.23

    +0.67%

  • RELX

    -0.5300

    47.56

    -1.11%

  • NGG

    -0.3300

    69.73

    -0.47%

  • BTI

    -0.2369

    36.84

    -0.64%

  • VOD

    0.0500

    10.09

    +0.5%

  • AZN

    -0.5600

    77.62

    -0.72%

  • BCE

    0.3600

    35.19

    +1.02%

  • JRI

    0.1200

    13.58

    +0.88%

  • BP

    0.6300

    31.42

    +2.01%

  • RYCEF

    0.0100

    7.05

    +0.14%

  • CMSD

    -0.0300

    25.08

    -0.12%

US, European stocks mixed as data comforts rate-cut bets
US, European stocks mixed as data comforts rate-cut bets / Photo: Daniel ROLAND - AFP/File

US, European stocks mixed as data comforts rate-cut bets

US and European stocks diverged on Tuesday despite data comforting expectations that central banks may begin cutting interest rates soon.

Text size:

Equity markets surged last month as slowing inflation and a softer US job market stoked expectations that the Federal Reserve would early next year begin loosening monetary policy.

But stocks have struggled in recent days as investors and analysts worried that the bets on interest rate cuts may have gone too far.

Investors are looking to US payrolls data due out later this week for confirmation that the slowdown in the labour market and economy sought by the US Federal Reserve is taking hold, which would help bring down inflation further and allow policymakers to begin cutting interest rates.

"The markets are a touch nervous ahead of US jobs figures this week which could either reinforce or undermine the narrative that interest rates have peaked and rate cuts are on the way," said AJ Bell investment director Russ Mould.

"Signs the labour market is heating up again would put any hopes of a Santa rally into the end of the year under threat," he added.

But different US labour market figures released on Tuesday showed a monthly decline in job openings dropped in October to 8.7 million from 9.4 million in September.

The data "suggest that labour market slack is growing, even as payroll growth remains relatively resilient," said Olivia Cross at Capital Economics.

"With signs pointing to a sharper fall in wage growth ahead, the Fed can be reassured ahead of its meeting next week that inflationary pressures from the labour market are dissipating," she added.

In late morning trading the Dow dipped, while the S&P 500 was flat and the tech-heavy Nasdaq rose.

More than one percentage point of rate reductions through to next December have been priced in by futures traders, according to Bloomberg News.

But observers said the euphoria may have caused investors to get ahead of themselves and the next few weeks could be a little bumpy, while they remained broadly upbeat about the new year.

Morgan Stanley strategist Michael Wilson said in a note that this month could see "near-term volatility in both rates and equities" before positive seasonal trends and "January effect" provide a lift next month.

"The biggest near-term risk for the markets could simply be that after a phenomenal one-month rally, a period of consolidation may be a necessary breather," said UBS Global Wealth Management's Jason Draho.

A forecast-beating reading on Friday of key US payrolls data could jolt markets.

The Fed holds its next policy meeting next week with most watchers tipping it to stand pat on rates, though its statement will be parsed for any clues about plans for the next few months.

In Europe, Frankfurt's DAX 40 index hit a record high of 16,551.34 points during trading and then set a record close of 16,533.11 points as hopes of a rate cut by the ECB are also on the rise. Paris stocks also climbed.

London's FTSE 100 fell however, as mining stocks were pulled down by lower commodity prices.

The price of haven investment gold dropped slightly, after striking a record high on Monday at $2,135.39 per ounce as the dollar weakened on expectations for a rate cut.

Bitcoin on Tuesday reached $42,397.32, a fresh high since April last year, before pulling lower.

European gas prices hit the lowest level in nearly two months, bringing some relief amid cold weather.

After markets in Shanghai and Hong Kong closed, Moody's said it had downgraded its outlook on China's credit rating citing rising debt in the world's second-largest economy.

- Key figures around 1630 GMT -

New York - Dow: DOWN 0.3 percent at 36,112.40 points

London - FTSE 100: DOWN 0.3 percent at 7,489.84 (close)

Paris - CAC 40: UP 0.7 percent at 7,386.99 (close)

Frankfurt - DAX: UP 0.8 percent at 16,533.11 (close)

EURO STOXX 50: UP 0.6 percent at 4, (close)

Tokyo - Nikkei 225: DOWN 1.4 percent at 32,775.82 (close)

Hong Kong - Hang Seng Index: DOWN 1.9 percent at 16,327.86 (close)

Shanghai - Composite: DOWN 1.7 percent at 2,972.30 (close)

Euro/dollar: DOWN at $1.0795 from $1.0839 on Monday

Pound/dollar: DOWN at $1.2600 from $1.2632

Dollar/yen: DOWN at 147.17 yen from 147.19 yen

Euro/pound: DOWN at 85.67 pence from 85.77 pence

West Texas Intermediate: UP 0.6 percent at $73.46 per barrel

Brent North Sea crude: UP 0.5 percent at $78.39 per barrel

burs-rl/rox

(L.Kaufmann--BBZ)