Global Markets Mixed Ahead of Central Bank Announcements
By Dow Jones Newswires StaffIn a busy day for central bank action, the Bank of England is expected to cut its key policy rate by 25 basis points while the European Central Bank is expected to hold, with investors' chief focus on its inflation and growth forecasts. The central banks of Norway and Sweden both kept their key rates unchanged, as expected.In the U.S., the delayed consumer price index print for November lands at 0830 ET.Ahead of that, U.S. stock futures were flat to slightly higher after all the main indexes closed lower in the prior session on fresh concerns over artificial-intelligence valuations. A bright spot was memory-chip maker Micron Technology, whose shares gained in after-hours trading after it hiked its growth forecasts. Oil prices rose again early Thursday while the U.S. dollar was broadly steady.U.S. futures for the S&P 500 rose 0.3% early in European business hours, while those for the Dow Jones Industrial Average were flat and Nasdaq futures gained 0.6%. Changes in futures do not necessarily predict movements after the opening bell.European indexes were flat to slightly higher at the open. The Dutch AEX nudged up 0.1% with the semiconductor stocks that dominate the index mixed after the falls in tech-related stocks on Wall Street Wednesday. Bourses in Spain, France and Italy also edged up slightly, while Germany's DAX was flat as was the U.K.'s FTSE 100. European oil and gas stocks continued to benefit from rising crude prices amid heightening tensions between the U.S. and Venezuela.Stocks in Asia ended mixed. Japan's Nikkei 225 index declined 1% with the Bank of Japan expected to buck the global trend and hike rates on Friday. Taiwan's TAIEX declined 0.2%; earlier, its central bank kept key interest rates unchanged. Hong Kong's Hang Seng climbed 0.1% while China's benchmark Shanghai Composite climbed 0.2%. South Korea's Kospi ended the day down 1.5%.The U.S. dollar was steady against a basket of major currencies as investors awaited the release of inflation data for November. U.S. weekly jobless claims data will also be closely watched. Federal Reserve Governor Christopher Waller told CNBC interest rates remain too high for a slowing jobs market ahead of his interview with President Trump for the Fed Chair job. The DXY dollar was recently flat at 98.388.Bitcoin edged higher but remained stuck below $90,000 as it continued to struggle for a meaningful recovery. It was last up 0.9% to $86,801, according to LSEG data.U.S. Treasury yields edged lower, with the 10-year yield down 0.8 basis point to 4.142%, according to Tradeweb data. Yields on U.K. 2-year government bonds fell as investors awaited the Bank of England interest-rate decision. U.K. inflation data released this week was weaker than expected, increasing prospects of lower interest rates, with focus on how close the vote is. Two-year gilt yields were last down 3 basis points to 3.707%, Tradeweb data showed, while the 10-year gilt yield was steady at 4.469%.In commodities, oil prices rose for a second straight session. Brent crude rose 0.7% to $60.08 a barrel, while WTI gained 0.8% to $56.24 a barrel. President Trump's blockade of sanctioned Venezuelan oil tankers could put at risk around 600,000 barrels a day of exports, most of which are bound for China. Still, oil prices remain on track for a roughly 20% decline this year, weighed down by persistent concerns that global supply will outpace demand. Gold prices slipped a touch but remained close to October's highs.Write to Barcelona Editors at [email protected]