Stocks, Dollar Edge Higher as More Data Awaited: Markets Wrap

European stocks rose Thursday, lifted by a bullish outlook from chip equipment maker ASML Holding NV as well as conviction that central banks in Europe and the US will cut interest rates further in December.

Author of the article:

Bloomberg News

Margaryta Kirakosian

Published Nov 14, 2024  •  3 minute read

The Shanghai Composite Index and the Shenzhen Component Index displayed on a stock ticker in Pudong's Lujiazui Financial District in Shanghai, China, on Monday, Jan. 30, 2023. China's stocks pulled back from the verge of a bull market, with the muted reopening from a week-long Lunar New Year break indicating that traders are waiting on new catalysts. Photographer: Qilai Shen/Bloomberg Photo by Qilai Shen /Bloomberg

(Bloomberg) — European stocks rose Thursday, lifted by a bullish outlook from chip equipment maker ASML Holding NV as well as conviction that central banks in Europe and the US will cut interest rates further in December. 

The Stoxx 600 index climbed 0.5%, after the Dutch maker of advanced chip-making machines reaffirmed a bullish 2030 outlook, boosting its shares by more than 5%. Siemens Energy AG was another gainer, seeing shares hit record highs as grid technology demand helped it increase targets. US futures were little changed, while the dollar extended its rally into a fifth day to hold near two-year highs. 

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Traders are looking to European GDP statistics later Thursday for clues on the state of the region’s economy and the path of interest rates. In the US, PPI numbers are expected to show headline and core producer prices for October rose year-over-year. 

While US inflation data yesterday fueled hopes of a potential Fed cut in mid-December, there’s concern Trump’s policies on tax and tariffs will reignite price growth next year. The Republicans’ unified control of the elected branches of government limits potential curbs on the incoming president’s power.

“There is expectation that Trump’s policy will be market friendly, growth friendly, will be impacting higher inflation but not massively, deregulation is going to be good for some sectors,” said Amelie Derambure, senior multi-asset portfolio manager at Amundi. “The assumption is we have good, soft Trump with no big negative impact priced by markets.”

Expectations of higher growth and accelerating inflation once Trump starts implementing his policies have offered a strong boost to the dollar, which has risen more than 2% so far this month. Its gains are weighing on a raft of assets, sending gold prices near two-month lows and pushing the yen to the weakest since July, close to levels when Japanese authorities last intervened to prop up the currency.

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The euro slid as much as 0.4%, trading at the lowest in more than a year. The European Central Bank is also expected to cut rates in December.

Earlier in Asia, concerns over the impact Trump’s proposed tariff policies on the region’s growth have put the MSCI Asia Pacific Index on track for its worst week since April. 

Investors are awaiting a speech from Federal Reserve chief Jerome Powell later in the day. 

Key events this week:

• Eurozone GDP, Thursday
• US PPI, jobless claims, Thursday
• Fed speakers include Jerome Powell, John Williams and Adriana Kugler, Thursday
• China retail sales, industrial production, Friday
• US retail sales, Empire manufacturing, industrial production, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.2% as of 8:57 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index fell 0.8%
• The MSCI Emerging Markets Index fell 0.8%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.3% to $1.0535
• The Japanese yen fell 0.3% to 155.94 per dollar
• The offshore yuan fell 0.2% to 7.2572 per dollar
• The British pound fell 0.3% to $1.2670

Cryptocurrencies

• Bitcoin rose 2.3% to $90,658.26
• Ether rose 1.6% to $3,205.67

Bonds

• The yield on 10-year Treasuries advanced one basis point to 4.46%
• Germany’s 10-year yield was little changed at 2.39%
• Britain’s 10-year yield advanced two basis points to 4.54%

Commodities

• Brent crude was little changed
• Spot gold fell 0.7% to $2,554.86 an ounce

This story was produced with the assistance of Bloomberg Automation.

—With assistance from Chiranjivi Chakraborty.

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