US Equity Futures Climb as rate Cut Bets Increase - Asia Market Wrap

06 Dec 2023 06:30BTC China Crypto EUR Europe Japan JPY US Bonds US Indexes USD

- US share futures rose following more evidence of a downturn in the labor market, which fueled expectations that the Fed would lower interest rates in an effort to prevent a recession in 2019.
- European stock futures gained 0.4% as MSCI's Asia Pacific Index, a measure of benchmarks in the area, saw its biggest gain in three weeks led by gains in Japanese equities.
- Global bonds are continuing gains on anticipation that a wave of easing would break out next year as inflation fears vanish. Benchmark US 10-year rates reversed some of Tuesday's dip that had taken them below 4.2%.
- The moves in Treasuries came after one of the European Central Bank’s most-hawkish officials said inflation is showing a “remarkable” slowdown. That led investors to bet that Europe will lead the world’s largest central banks on interest-rate cuts.
- The onshore Chinese yuan fell even as officials increased their support for the currency after Moody's lowered the country's credit outlook on Tuesday, and the dollar fell versus the majority of its G10 peers.
- SocGen set to become first big bank to list stablecoin - FT.