Central bankers sent yields higher, U.S. stocks bounce back, and the global cyberattack enters day two. Here are some of the things people in markets are talking about.
Global central bankers spelled it out clearly today: policy normalization is coming. In a panel discussion on Wednesday, Bank of England Governor Mark Carney signaled that rate hikes may be coming relatively soon, setting the stage for an exciting meeting in August. Eurosystem officials sought to push back on the market’s hawkish interpretation of President Mario Draghi’s remarks Tuesday but couldn’t keep the currency down for long, with the euro advancing on the greenback. In addition, Bank of Canada chief Stephen Poloz reiterated his tightening bias, prompting traders to up their bets on the likelihood of a hike next month. Japanese, U.S., Canadian, German, and British 10-year yields all moved higher on the day.
The tech-heavy Nasdaq 100 Index gained 1.4 percent, paring most of Tuesday’s losses in a risk-on day for markets. Financial shares helped propel the S&P 500 Index higher, with a bevy of buybacks on the way following the completion of the Federal Reserve’s stress tests. The Russell 2000 Index came within a hair of new records.
BNP Paribas, Mondelez, and FedEx are among the major companies afflicted by the ransomware attack that has swept the globe over the past two days. The worldwide shipping company said in a statement Wednesday that its TNT Express unit in Europe had been “significantly” affected. PureFunds ISE Cyber Security ETF managed to erase yesterday’s losses with a gain of 1.6 percent on the day.
S&P/ASX 200 futures are solidly higher ahead of the open, with Nikkei 225 futures also trading in positive territory. Asian shares stumbled on Wednesday after taking their cues from the tech selloff in the U.S. the prior session.
A pair of Japanese data headline Thursday’s economic calendar in the region. Retail sales are expected to slip 1 percent month-on-month in May after April’s 1.4 percent advance, and will be followed by an update on international securities transactions for the week ending June 23. Also on deck: the June readings of ANZ’s activity outlook and business confidence surveys. In Washington D.C., South Korean President Moon Jae-in and U.S. President Donald Trump are slated to meet and dine on Thursday, with sector-specific trade balances dominating the discussions.
Sent by Bloomberg