Stocks, futures mixed before earnings, Fed: market recap

(Bloomberg) – U.S. stocks and futures were mixed on Tuesday amid caution in global markets ahead of the Federal Reserve’s interest rate hike.

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(Bloomberg) – U.S. stocks and futures were mixed on Tuesday amid caution in global markets ahead of the Federal Reserve’s interest rate hike.

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European energy and mining stocks rallied along with oil and metals, while retailers and banks fell. UBS Group AG fell more than 5% after reporting weaker-than-expected earnings, while Walmart Inc. fell in U.S. premarket trading following its surprise warning and Alibaba Group Holding Ltd. surged amid plans to seek a primary listing in Hong Kong.

Traders brace for a widely expected Fed rate hike of 75 basis points on Wednesday as part of the inflation-fighting campaign, along with reports from companies like Apple Inc. and Alphabet Inc. They are also assessing risks, including ongoing disruptions in Europe. Russia’s gas supply and China’s Covid curbs and real estate issues.

Commodity prices soar as signs of tightening outweigh economic concerns. European natural gas hit its highest level in more than four months, while crude and copper surged. Energy ministers from the 27 member states of the European Union are meeting in Brussels to argue over support for a European Commission proposal aimed at regulating consumption.

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Treasury yields and a dollar gauge were little changed.

For Katerina Simonetti, an adviser at Morgan Stanley Private Wealth Management, the litany of risks exposes the vulnerability of the 6% rebound in global equities from June lows.

“This is most likely a bearish rally and this market still faces significant risk,” she said on Bloomberg Television. “We are likely to see a lot of turmoil and potentially further declines in the market before the end of the year.”

Musk, Tesla and Twitter are this week’s topic of the MLIV Pulse survey. Also, share your views on the most important stocks in the S&P 500. Click here to get involved anonymously.

Here are some key events to watch this week:

  • Alphabet, Apple, Amazon, Microsoft, Meta gains expected this week
  • US New Home Sales, Conf. Consumer Confidence Council, Tuesday
  • IMF Global Economic Outlook Update, Tuesday
  • Emergency meeting of EU energy ministers on Tuesday
  • Fed Policy Decision Briefing Wednesday
  • CPI Australia, Wednesday
  • US GDP, Thursday
  • Eurozone CPI, Friday
  • US PCE Deflator, Personal Income, University of Michigan Consumer Sentiment, Friday

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Some of the major movements in the markets:

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  • The Stoxx Europe 600 was little changed at 10:40 am London time
  • S&P 500 futures fell 0.3%
  • Nasdaq 100 futures fell 0.3%
  • Dow Jones Industrial Average futures fell 0.4%
  • The MSCI Asia-Pacific index fell 0.6%
  • The MSCI Emerging Markets Index fell 0.3%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.2%
  • The euro fell 0.4% to $1.0178
  • The Japanese yen was little changed at 136.58 per dollar
  • The offshore yuan fell 0.1% to 6.7622 per dollar
  • The British pound fell 0.2% to $1.2014

Obligations

  • The yield on 10-year Treasury bills fell two basis points to 2.77%
  • Germany’s 10-year yield fell five basis points to 0.97%
  • The UK 10-year yield fell two basis points to 1.92%

Goods

  • Brent rose 1.4% to $106.65 a barrel
  • Spot gold little changed

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