Latest news with #KennethBroux
Zawya
4 days ago
- Business
- Zawya
Wall St futures edge up as optimism over economy offsets Netflix's fall
U.S. stock index futures inched higher on Friday, buoyed by signs of a resilient U.S. economy, even as Netflix's market-beating quarterly profit failed to dazzle investors. At 5:30 a.m. ET, S&P 500 E-minis were up 8.75 points, or 0.14%, Nasdaq 100 E-minis were up 33 points, or 0.14%, and Dow E-minis were up 66 points, or 0.15%. Wall Street's winning streak continued overnight, with the S&P 500 and the Nasdaq notching fresh record closes after upbeat data on retail sales and jobless claims signaled a healthy U.S. economy. The data gives the Federal Reserve some breathing room to assess the inflationary effects of U.S. tariffs. Netflix rode the success of "Squid Game" to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant's shares slipped 1.5% in premarket trading. It has risen 43% this year. All eyes remain on whether President Donald Trump's tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation. Traders now put the odds of a rate cut in September at about 56.3%, with a July move nearly off the table, according to CME's FedWatch tool. "This week's data supports the wait-and-see camp on the Fed. Tariffs are percolating to consumer prices but is not withholding households from opening their wallets," said Kenneth Broux, head of corporate research and rates, at Societe Generale. Federal Reserve Governor Christopher Waller signaled on Thursday that mounting economic risks and tame inflation have him backing an interest rate cut by this month's end, downplaying concerns that tariffs will fuel lasting price hikes. As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80% have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data. The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals - robust retail sales, a spike in consumer inflation, and a stall in producer prices for June. Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets and Coinbase Global COIN.O gained 1.9% each, while Bitfarms rose 2.8% and Hut 8 advanced 1.3%.
Yahoo
4 days ago
- Business
- Yahoo
Wall St futures edge up as optimism over economy offsets Netflix's fall
(Reuters) -U.S. stock index futures inched higher on Friday, buoyed by signs of a resilient U.S. economy, even as Netflix's market-beating quarterly profit failed to dazzle investors. At 5:30 a.m. ET, S&P 500 E-minis were up 8.75 points, or 0.14%, Nasdaq 100 E-minis were up 33 points, or 0.14%, and Dow E-minis were up 66 points, or 0.15%. Wall Street's winning streak continued overnight, with the S&P 500 and the Nasdaq notching fresh record closes after upbeat data on retail sales and jobless claims signaled a healthy U.S. economy. The data gives the Federal Reserve some breathing room to assess the inflationary effects of U.S. tariffs. Netflix rode the success of "Squid Game" to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant's shares slipped 1.5% in premarket trading. It has risen 43% this year. All eyes remain on whether President Donald Trump's tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation. Traders now put the odds of a rate cut in September at about 56.3%, with a July move nearly off the table, according to CME's FedWatch tool. "This week's data supports the wait-and-see camp on the Fed. Tariffs are percolating to consumer prices but is not withholding households from opening their wallets," said Kenneth Broux, head of corporate research and rates, at Societe Generale. Federal Reserve Governor Christopher Waller signaled on Thursday that mounting economic risks and tame inflation have him backing an interest rate cut by this month's end, downplaying concerns that tariffs will fuel lasting price hikes. As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80% have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data. The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals - robust retail sales, a spike in consumer inflation, and a stall in producer prices for June. Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets and Coinbase Global COIN.O gained 1.9% each, while Bitfarms rose 2.8% and Hut 8 advanced 1.3%. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Wall St futures edge up as optimism over economy offsets Netflix's fall
(Reuters) -U.S. stock index futures inched higher on Friday, buoyed by signs of a resilient U.S. economy, even as Netflix's market-beating quarterly profit failed to dazzle investors. At 5:30 a.m. ET, S&P 500 E-minis were up 8.75 points, or 0.14%, Nasdaq 100 E-minis were up 33 points, or 0.14%, and Dow E-minis were up 66 points, or 0.15%. Wall Street's winning streak continued overnight, with the S&P 500 and the Nasdaq notching fresh record closes after upbeat data on retail sales and jobless claims signaled a healthy U.S. economy. The data gives the Federal Reserve some breathing room to assess the inflationary effects of U.S. tariffs. Netflix rode the success of "Squid Game" to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant's shares slipped 1.5% in premarket trading. It has risen 43% this year. All eyes remain on whether President Donald Trump's tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation. Traders now put the odds of a rate cut in September at about 56.3%, with a July move nearly off the table, according to CME's FedWatch tool. "This week's data supports the wait-and-see camp on the Fed. Tariffs are percolating to consumer prices but is not withholding households from opening their wallets," said Kenneth Broux, head of corporate research and rates, at Societe Generale. Federal Reserve Governor Christopher Waller signaled on Thursday that mounting economic risks and tame inflation have him backing an interest rate cut by this month's end, downplaying concerns that tariffs will fuel lasting price hikes. As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80% have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data. The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals - robust retail sales, a spike in consumer inflation, and a stall in producer prices for June. Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets and Coinbase Global COIN.O gained 1.9% each, while Bitfarms rose 2.8% and Hut 8 advanced 1.3%.
Zawya
6 days ago
- Business
- Zawya
Euro zone bond yields steady as markets assess US, UK inflation data
Euro zone government bond yields edged slightly lower on Wednesday, as markets assessed U.S. inflation figures released Tuesday that suggested tariffs may be pushing up prices while the latest hot UK inflation data pushed gilt yields higher. The June CPI data out of the U.S. on Tuesday showed an increase of 0.3%, suggesting tariffs are reading through to prices, and spurring investors to slightly scale back their bets on Federal Reserve rate cuts with Wall Street markets falling late on Tuesday as treasury yields rose. But the mood was decidedly muted on Wednesday, with German 10-year yields, the euro area's benchmark, down a mere 1 bps to 2.7%, hovering just off a nearly four-month high of 2.737% scaled on Monday. "It's relatively quiet - no spillover from UK CPI to Europe. A pause after a run up in yields makes sense. I'm keeping a close eye on stocks after profit warnings .. that puts a brake on yields," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. The two-year yield – more sensitive to expectations for European Central Bank policy rates – was also down 1 bp to 1.86% . The German 30-year yield was down 1 bps at 3.23%, having risen to its highest level since October 2023 on Monday, touching 3.26%. Markets are looking ahead to U.S. producer price data due later to assess the extent of inflationary pressures in the U.S. UK CPI data meanwhile showed Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year, at 3.6% in June. The print meant UK 10-year gilts were a rare outlier, rising 2 bps to 4.65%, while most of the other major government bonds yields were slightly down. Markets are focused on U.S. President Donald Trump's ongoing trade war, with his latest move being a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian country. It comes as the European Union is readying retaliatory measures should talks with Washington fail. Planned U.S. tariffs of 30% on imports from the EU could cost the German economy about a quarter of a percentage point in growth this year and next compared with current forecasts, the IMK institute said on Wednesday. Elsewhere, the German cabinet approved on Wednesday a medium-term fiscal plan that will be submitted to the European Commission, a spokesperson from the finance ministry said. Italian EU-harmonised consumer prices (HICP) rose 0.2% month-on-month in June and were up 1.8% from the year earlier, official statistics agency ISTAT said on Wednesday, slightly revising up preliminary data. The European Union statistics office on Wednesday said the euro zone's May seasonally adjusted trade balance was 16.2 billion euros, with an earlier Reuters poll expecting 13 billion euros. (Reporting by Lucy Raitano; Editing by Amanda Cooper and Bernadette Baum)
Zawya
03-07-2025
- Business
- Zawya
Euro zone bond yields dip, traders' eyes on US and Britain
Euro zone government bond yields dipped on Thursday with the focus on events outside the currency bloc, particularly U.S. jobs data due later in the day, and the British gilt market after the previous day's sharp selloff there. Germany's 10-year bond yield was down 4 basis points on the day at 2.58%, which Kenneth Broux, head of corporate research FX and rates at Societe Generale, said was a reversal of Wednesday's "UK induced sell off and spike above 2.60%". Euro zone bonds got caught up in the gilt selloff that was driven by renewed worries about the UK's public finances and the future of finance minister Rachel Reeves. Germany's 10-year yield, the euro zone benchmark, rose 5 basis points on Wednesday. British Prime Minister Keir Starmer said later on Wednesday that Reeves will be in post "for a very long time to come,". Gilt yields were down around 8 basis points on Thursday. Barring any further surprises, the main event for global bond markets on Thursday is U.S. non-farm payrolls due 1230 GMT. Analysts expect the labour market to have slowed further in June, with the unemployment rate expected to have edged up to a more than a 3-1/2-year high of 4.3%, as economic uncertainty stemming from the Trump administration's policies curbed hiring. Broux said the data would help indicate whether market repricing of more Federal Reserve rate cuts this year had gone too far. He added that while U.S. inflation data later in the month was the most important data release, if the jobs numbers were higher than expected that would "strengthen the hand of the hawks on the FOMC", the Fed's rate setting body, represented by its chair Jerome Powell, and "their conviction that waiting is the better option to assess the impact of tariffs". Markets currently see at least two 25 basis point Fed rate cuts this year, likely starting in September, and roughly a 50% chance of a third. The European Central Bank, which has been much more aggressive than the Fed when it comes to rate cuts, with inflation in control and growth more sluggish, is much nearer the end of its cutting cycle. Markets see the ECB cutting just once more this cycle, likely late this year. The other U.S. development on investors' minds is U.S. President Donald Trump's tax-cut and spending bill which Republicans in the House of Representatives advanced toward a final yes-or-no vote early on Thursday morning. Back in Europe, Italy's 10-year yield was down 5 basis points on Thursday at 3.49% having risen 6 bps the previous day. France's 10-year yield was down 4 bps, also after a 6 bps Wednesday jump. (Reporting by Alun John; editing by Philippa Fletcher and Louise Heavens)
