Recovery for US stocks expected amid global rally

Recovery for US stocks expected amid global rally
US government bond auction ahead with $38M sale expected.
AUG 09, 2023
By  Bloomberg

European stocks rallied as investors took some comfort from assurances by the Italian government that a new windfall tax on banks will be capped.

Italy’s benchmark FTSE MIB Index jumped more than 2%, snapping a six-day streak of losses. UniCredit SpA and Intesa Sanpaolo SpA, at the center of Tuesday’s declines when the new tax was unveiled, became Wednesday’s biggest gainers, pushing the Stoxx 600 up 1%. 

Other markets tilted risk-on, with the euro strengthening, copper rebounding and US futures pointing to a recovery on Wall Street. 

Meanwhile, Treasuries steadied ahead of another closely watched bond auction later today. The US government is expected to sell $38 billion of new 10-year notes, $3 billion larger than the last 10-year note debut in May.

The debt auctions will gauge how concerned investors are about a rising US budget deficit, a week after Fitch Ratings decided to strip the US of its top credit rating. Tuesday’s $42 billion sale of three-year notes had a lower-than-expected yield, a sign that demand was stronger than anticipated.

CORPORATE HIGHLIGHTS:
  • L’Occitane International SA’s controlling shareholder is in advanced talks on a potential deal to take the skin-care company private at a valuation of around $6.5 billion.
  • Country Garden Holdings Co.’s potential default could overshadow even that of China Evergrande Group in late 2021, according to Bloomberg Intelligence.
  • Walt Disney Co.’s ESPN has signed a long-term exclusive partnership for sports betting with Penn Entertainment Inc., a regional casino operator.
  • Shares in WeWork Inc. fell in post-market trading after the company said there was “substantial doubt” about its ability to continue operating, citing sustained losses and canceled memberships to its office spaces.

Key events this week:

  • India rate decision, Thursday
  • US initial jobless claims, CPI, Thursday
  • Atlanta Fed President Raphael Bostic pre-recorded remarks for employment webinar, Thursday
  • UK industrial production, GDP, Friday
  • US University of Michigan consumer sentiment, PPI, Friday

Some of the main moves in markets:

STOCKS
  • The Stoxx Europe 600 rose 1% as of 9:39 a.m. London time
  • S&P 500 futures rose 0.3%
  • Nasdaq 100 futures rose 0.4%
  • Futures on the Dow Jones Industrial Average rose 0.2%
  • The MSCI Asia Pacific Index rose 0.1%
  • The MSCI Emerging Markets Index rose 0.4%
CURRENCIES
  • The Bloomberg Dollar Spot Index fell 0.1%
  • The euro rose 0.2% to $1.0975
  • The Japanese yen was little changed at 143.31 per dollar
  • The offshore yuan rose 0.3% to 7.2135 per dollar
  • The British pound was little changed at $1.2750
CRYPTOCURRENCIES
  • Bitcoin fell 0.6% to $29,793.37
  • Ether fell 0.2% to $1,860.25
BONDS
  • The yield on 10-year Treasuries declined one basis point to 4.01%
  • Germany’s 10-year yield was little changed at 2.47%
  • Britain’s 10-year yield declined two basis points to 4.37%
COMMODITIES
  • Brent crude rose 0.1% to $86.29 a barrel
  • Spot gold rose 0.2% to $1,928.58 an ounce

This story was produced with the assistance of Bloomberg Automation.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.