(Bloomberg) — European stock futures fell, mirroring Asian shares, as a China Economic Conference announcement disappointed traders and weakened risk appetite ahead of next week’s U.S. Federal Reserve meeting.
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The Euro Stoxx 50 Index fell 0.2%, marking the worst week for global stock indexes in nearly a month. S&P 500 Index (ES=F) contracts rose modestly on Friday after selling on Wall Street on Thursday following U.S. unemployment claims and producer price data.
In Asia, stocks in China and Hong Kong led the region’s decline after China’s Central Economic Work Conference concluded without providing details on fiscal stimulus despite authorities promising to boost consumption. . But their pledge to cut not only banks’ reserve requirements, but also policy rates, pushed China’s 10-year government bond below 1.8% for the first time in history.
“While the market may have been hoping that the CEWC would announce more details on consumption stimulus and real estate inventory clearing measures, the turnout was a bit disappointing,” said Jason Chan, senior investment strategist at East Asia Bank. I did,” he said. “Investors may need to wait for further fiscal policy developments in the first quarter.”
The dollar strength index was little changed, maintaining gains from the past five sessions. The dollar’s strength was supported by rising U.S. Treasury yields.
Confidence among large companies remains positive in Japan, broadly in line with the Bank of Japan’s view, where analysts are divided on whether to raise interest rates ahead of next week’s policy meeting.
South Korean stock benchmarks rose, temporarily recovering from all the losses caused by President Yun Seok-Yeong’s failed attempt to impose martial law. Local newspaper Bunka Ilbo reported that more than eight members of South Korea’s ruling People’s Power Party supported the motion to impeach Yoon, reaching the minimum number of votes needed for it to pass.
Shares in data center operator Digico Infrastructure REIT fell as much as 10% on Friday after its A$2 billion ($1.3 billion) listing in Sydney, with market watchers citing valuation concerns.
In India, government data showed India’s inflation slowing last month, bringing some relief to the newly appointed central bank governor.
interest rate cut
The European Central Bank cut borrowing costs by 25 basis points, as expected, and signaled further cuts could be made at a future meeting. The Swiss National Bank cut interest rates by 50 basis points, more than expected.
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