(Bloomberg) — Stocks climbed to fresh all-time highs, with traders set for a final read on the American consumer a day before the Federal Reserve’s widely expected first interest-rate cut of the year.
US stock futures edged higher after the S&P 500 powered through the 6,600 mark on Monday. MSCI’s gauge for Asian shares hit a record and is poised for its best streak in nearly five years. Europe’s benchmark index fell 0.3%, led by losses in the insurance and telecoms sectors.
Gold closed in on $3,700 an ounce as the metal extended its record rally, fueled by expectations of as many as four quarter-point Fed cuts by January. The dollar retreated against all major currencies to the lowest since July. Treasuries advanced, with the 10-year rate falling one basis point to 4.03%.
Ahead of the Fed’s rate call, retail sales for August are forecast to show a 0.2% increase, following stronger advances in the previous two months. With the jobs market softening and prices rising, questions remain over how long consumers will keep spending freely.
Chris Weston, head of research at Pepperstone Group, said it will likely take “an outsized surprise in retail sales” to significantly change the outlook on risk.
A quarter-point cut is widely expected at Wednesday’s Fed decision, with some chance of a half-point move as signs of rapidly slowing job growth emerge. Markets largely anticipate that labor concerns will take priority, with policymakers likely to strike a dovish tone.
“We’re sticking to our risk-on call as we see monetary easing shifting from Europe to the US as a positive trend,” said Mabrouk Chetouane, head of global market strategy at Natixis Global Asset Management. “The upcoming Fed rate cuts will bring some oxygen to the market and so far the US tariffs have not fueled inflation, which remains contained.”
In other Fed news, a US appeals court blocked the president from removing Governor Lisa Cook from her post while her lawsuit challenging the dismissal proceeds. Also, Trump’s economic adviser Stephen Miran is on his way to joining the central bank’s board after the Senate confirmed him to the post.
Corporate News:
President Donald Trump said he’s filing a $15 billion defamation and libel lawsuit against The New York Times, accusing the paper of serving as a “mouthpiece” for the Democrats. BNP Paribas SA raised key return and capital targets as Chief Executive Officer Jean-Laurent Bonnafe overhauls the French lender’s domestic network ahead of a new strategic plan. Hesai Group, the world’s largest maker of lidar sensors used in cars, rose in its Hong Kong trading debut after its HK$4.2 billion ($535 million) listing in the city. Tencent Holdings Ltd. is considering raising about 8 billion yuan ($1.1 billion) in its first bond sale in four years, according to people familiar with the matter. Alphabet Inc. on Monday joined an elite group of companies valued at more than $3 trillion, the latest sign of improving investor sentiment toward the Google parent. Anglo American Plc signed an agreement with Chile’s state copper company Codelco to jointly develop their adjacent mines near Santiago in a bid to boost production without major investments. Unilever Plc appointed Srinivas Phatak as its chief financial officer, replacing Fernando Fernandez who was promoted to chief executive officer following a board reshuffle. Verisure, the alarm company owned by Hellman & Friedman, is considering launching an initial public offering in Stockholm as soon as this week, according to people familiar with the matter, kicking off what could be Europe’s largest IPO in three years. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.3% as of 8:31 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.7% The MSCI Emerging Markets Index rose 0.8% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.3% to $1.1799 The Japanese yen rose 0.5% to 146.70 per dollar The offshore yuan rose 0.1% to 7.1111 per dollar The British pound rose 0.3% to $1.3642 Cryptocurrencies
Bitcoin rose 0.4% to $115,840.58 Ether was little changed at $4,510.85 Bonds
The yield on 10-year Treasuries declined one basis point to 4.03% Germany’s 10-year yield was little changed at 2.69% Britain’s 10-year yield was little changed at 4.64% Commodities
Brent crude fell 0.3% to $67.23 a barrel Spot gold rose 0.3% to $3,691.53 an ounce This story was produced with the assistance of Bloomberg Automation.
