Global Stocks Advance as Tech Rally Continues: Markets Wrap

(Bloomberg) — Stocks rallied, tracking gains in Asian markets as a tech-fueled rebound spread globally.

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Europe’s Stoxx 600 index jumped 1.2%, the most since mid-August, led by gains in the technology sector. Futures for the S&P 500 were up 0.2%. Treasuries were steady and the dollar was flat. The MSCI Asia Pacific Index climbed the most in almost a month, boosted by gains in the tech-heavy markets of Japan, South Korea and Taiwan.

Risk appetite has returned after the world’s largest technology companies spurred a stock-market bounce on Wall Street on Wednesday. Focus is also on the path for interest rates, with the European Central Bank poised to cut again on Thursday. US inflation data for August supported bets for a Federal Reserve rate cut next week, but fueled speculation officials will move gradually.

Traders have swung between optimism that the Fed will guide the US economy to a soft landing and fear that the central bank has left it too late to cut rates. While swaps have now priced in a 25 basis point rate reduction next week, debate over the path for further reductions continues, and some investors say markets have overpriced expectations.

“Stocks will probably rally more with a 25 bps cut than 50,” because the latter will signal weaker growth, Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs Group Inc., said on Bloomberg TV.

In corporate news, OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. Nvidia Corp. Chief Executive Officer Jensen Huang said the limited supply of their products has frustrated some customers and raised tensions.

Alimentation Couche-Tard Inc. is discussing improving its takeover proposal for Seven & i Holdings Co. with the goal of convincing the Japanese convenience store operator to start engaging in discussions, people with knowledge of the matter said.

In Japan, the Nikkei index halted a seven-day losing streak as the US inflation print pulled the yen down from its strongest level against the dollar since December. A region-wide gauge of tech stocks rose more than 3% after Nvidia jumped 8.2% overnight, while Taiwan Semiconductor Manufacturing Co. was among top gainers on the regional index.

Story continues

Oil extended gains from Wednesday as Hurricane Francine ripped through key oil-producing zones in the Gulf of Mexico, prompting traders to cover bearish bets. Gold traded above $2,515 per ounce.

Key events this week:

• ECB rate decision, Thursday

• US initial jobless claims, PPI, Thursday

• Eurozone industrial production, Friday

• Japan industrial production, Friday

• U. Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 1.2% as of 8:11 a.m. London time

• S&P 500 futures rose 0.1%

• Nasdaq 100 futures rose 0.2%

• Futures on the Dow Jones Industrial Average rose 0.1%

• The MSCI Asia Pacific Index rose 1.5%

• The MSCI Emerging Markets Index rose 1.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1010

• The Japanese yen fell 0.3% to 142.79 per dollar

• The offshore yuan was little changed at 7.1282 per dollar

• The British pound was little changed at $1.3045

Cryptocurrencies

• Bitcoin rose 0.8% to $57,932.51

• Ether rose 0.5% to $2,359.36

Bonds

• The yield on 10-year Treasuries advanced two basis points to 3.67%

• Germany’s 10-year yield advanced two basis points to 2.13%

• Britain’s 10-year yield advanced two basis points to 3.78%

Commodities

• Brent crude rose 1.4% to $71.59 a barrel

• Spot gold rose 0.1% to $2,515.43 an ounce

This story was produced with the assistance of Bloomberg Automation.

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