(Bloomberg) — Stocks rose as investors awaited near-term trading cues in a busy week of inflation data and policy decisions from the Federal Reserve and Japan.
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Futures on the S&P 500 and Nasdaq 100 climbed after Bloomberg reported that Apple Inc. is in talks to build Google’s Gemini artificial intelligence engine into the iPhone. Google parent company Alphabet Inc. advanced as much as 3% in premarket trading, while Apple added as much as 0.8%. European stocks edged higher.
Bets are mounting that the Bank of Japan will end its negative-rate policy at its meeting Tuesday, while the UK’s policy decision and inflation data are due later in the week. The main focus comes Wednesday, when Fed policy makers gather for a decision that has the potential to set the tone for global stocks for the next quarter.
While Fed Chairman Jerome Powell indicated the central bank was close to having the confidence to cut, bond traders appear to have painfully surrendered to a higher-for-longer reality. The 10-year Treasury yield held near a three-week high on Monday, having risen more than 20 basis points last week. A gauge of the dollar was steady.
“The Fed may have less confidence on inflation than before, but it still has confidence in the disinflation trend,” Bank of America economists including Michael Gapen wrote in a note to clients.
In Japan, the Nikkei 225 index climbed the most in a month and the yen traded weaker against the dollar, amid signs markets have priced in the potential for an interest-rate increase.
“Japanese stocks are rising, driven by weakness of the yen, and expectations that the currency won’t strengthen even if the central bank hikes,” said Charu Chanana, a strategist at Saxo Capital Markets based in Singapore.
Elsewhere this week, the Reserve Bank of Australia is set to extend its rate pause while Bank Indonesia and the Bank of England also deliver policy decisions. Eurozone inflation data is due as well as Reddit Inc.’s initial public offering.
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In commodities, oil hit a fresh four-month high — building on the biggest weekly advance in a month — as macro-economic data from China came in ahead of expectations, and Ukrainian attacks on Russian refineries heightened geopolitical risks.
Key events this week:
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Eurozone CPI, Monday
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Australia rate decision, Tuesday
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Japan rate decision, Tuesday
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Canada inflation, Tuesday
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China loan prime rates, Wednesday
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Indonesia rate decision, Wednesday
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UK CPI, Wednesday
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US rate decision, Wednesday
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Brazil rate decision, Wednesday
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ECB President Christine Lagarde speaks, Wednesday
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New Zealand GDP, Thursday
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Taiwan rate decision, Thursday
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Switzerland rate decision, Thursday
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Norway rate decision, Thursday
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UK rate decision, Thursday
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Mexico rate decision, Thursday
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European Union summit in Brussels, Thursday
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Japan CPI, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 was little changed as of 9:50 a.m. London time
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S&P 500 futures rose 0.3%
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Nasdaq 100 futures rose 0.7%
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Futures on the Dow Jones Industrial Average were little changed
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The MSCI Asia Pacific Index rose 0.9%
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The MSCI Emerging Markets Index rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0899
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The Japanese yen fell 0.1% to 149.20 per dollar
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The offshore yuan was little changed at 7.2061 per dollar
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The British pound was little changed at $1.2737
Cryptocurrencies
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Bitcoin fell 0.5% to $67,957.01
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Ether fell 1.7% to $3,571.05
Bonds
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The yield on 10-year Treasuries was little changed at 4.30%
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Germany’s 10-year yield advanced one basis point to 2.45%
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Britain’s 10-year yield was little changed at 4.10%
Commodities
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael G. Wilson.
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