Global Markets Mixed Ahead of Bumper Central-Bank Week
By Dow Jones Newswires StaffGlobal stock markets were mixed to start the week, with falls across Asia even as European bourses opened up and U.S. stock futures pointed to a modestly higher open. Weak Chinese economic data and the continued fallout from renewed concerns over tech-sector valuations related to the artificial-intelligence boom were behind the falls in Asia. In Europe, financial stocks and miners were the main gainers.Ahead: a slew of rate decisions from the European Central Bank, the Bank of England, Nordic central banks and the Bank of Japan, among others. An interest-rate increase is expected in Japan, a rate cut in the U.K., while the eurozone's central bank could signal that rates are unlikely to fall any further.Meanwhile, key U.S. economic data--November employment on Tuesday and the Consumer Price Index on Thursday--will potentially give investors a clearer picture of rate-path expectations next year.Memory-chip maker Micron Technology reports earnings on Wednesday, providing the latest litmus test of demand for tech stocks.U.S. futures for the Nasdaq and S&P 500 rose 0.2%, while those for the Dow Jones Industrial Average climbed 0.3%. The main indexes all closed lower on Friday led by falls in Oracle and Broadcom. Changes in futures don't necessarily predict movements after the opening bell.Asian stock markets fell broadly. Japan's Nikkei ended 1.3% lower, with Softbank closing down nearly 6.0%. South Korea's Kospi ended down 1.8% dragged by chip and auto stocks. Hong Kong's Hang Seng Index dropped 1.3%. China's Shanghai Composite Index fell 0.55% while Shenzhen declined 0.8% and the tech-heavy ChiNext ended 1.8% lower. China reported weak November economic activity data across the board, adding pressure on Beijing to stabilize household and business demand in the world's second-largest economy.It was a different picture in Europe, with indexes all opening higher. Spain's IBEX 35 was the biggest gainer in early trade, up 0.9% on a strong early showing for bank stocks. Lenders Santander and BBVA rose 1.85% and 1.5%, respectively. France's CAC 40 rose 0.4%, though pharmaceutical company Sanofi fell 5.1% on a disappointing drug update. Germany's DAX gained 0.4%. Meanwhile, the U.K.'s FTSE 100 added 0.5% after early gains for miners boosted by the relentless rise of gold, silver and copper prices alongside a softer U.S. dollar.The dollar remained weak, weighed by expectations for further U.S. interest-rate cuts after the Federal Reserve cut interest rates last week and sounded less cautious about further cuts than anticipated. On Friday, President Trump told The Wall Street Journal he was considering former Fed governor Kevin Warsh to become the next Fed chair along with his advisor Kevin Hassett. He said the next Fed chair should consult him on monetary policy and thinks rates should be cut to 1% or lower, fuelling concerns about Fed independence risks. The DXY dollar index against a basket of major currencies was last down 0.1% to 98.361, having reached a nearly eight-week low of 98.134 last Thursday.Bitcoin was up a touch but remained below the key $90,000 level as it struggled to recover meaningfully after hitting a near two-week low overnight. The cryptocurrency has been hit by the rotation away from AI-related stocks that offset the positive impact of expectations for further interest-rate cuts after the Fed. Bitcoin was recently up 1.4% to $89,682 after reaching a low of $87,621, according to LSEG data.U.S. Treasury yields fell late in Asian trade. Further signs of weakness in labor-market data are likely to cement expectations for further rate cuts in 2026. "In our view, the FOMC has room to deliver the 50 basis points of easing priced in by Fed funds futures over the next 12 months," Brown Brothers Harriman's Elias Haddad said in a note. The 10-year yield was down 2.4 basis points to 4.171%, according to Tradeweb data.In commodities, gold prices climbed; futures in New York were up 1.1% to $4,377.40 a troy ounce in early trading. Silver futures rose 2.7% to $63.68 an ounce, while platinum was up 2.9% to $1,757.10 an ounce. Oil prices edged slightly higher, with gains capped by diplomatic efforts to end the war in Ukraine and concerns of an oversupplied market. Brent crude rose 0.1% to $61.19 a barrel, while WTI rose 0.2% to $57.33 a barrel.Write to Barcelona Editors at [email protected]