Global stocks on track for 2024's best winning streak

Stocks ticked higher after a buoyant session on Wall Street amid bets the Federal Reserve will soon signal it’s ready to start cutting interest rates.

MSCI’s all-country stock index headed for a ninth day of increases — the longest run of gains since December. Europe’s Stoxx 600 and US futures were little changed, while Treasury 10-year yields were steady. The yen edged higher to hover around 146.50 per dollar. 

Traders are taking a breather after Monday’s session in the US lifted the S&P 500 for an eighth straight day. Stock volumes have been trending lower with investors reluctant to place big bets before central bankers gather for the Fed’s Jackson Hole economic symposium this week.

“What we’ve seen happen is a swath of recent data, which has eased fears about slowing US growth without stoking fears of re-accelerating inflation,” said Kyle Rodda, a senior market analyst at Capital.Com Inc. 

In Europe, increasing risks to the growth outlook have reinforced the case for a policy adjustment when the European Central Bank meets next month, Governing Council member Olli Rehn said. Markets are pricing in at least two more rate reductions this year.

On the corporate front, Alimentation Couche-Tard Inc.’s preliminary proposal to buy 7-Eleven owner Seven & i Holdings Co. could be worth more than ¥5.63 trillion ($38.4 billion), based on the Japanese company’s market value after news of the potential deal was disclosed.

A gauge of Asian currencies touched the highest since January, while oil extended the biggest drop in two weeks as the US said Israel accepted a cease-fire proposal in Gaza.

Copper trimmed its recent rebound and gold topped $2,500 an ounce on expectations that the Fed is poised to cut interest rates. 

Key events this week:

• US Fed minutes, BLS preliminary annual payrolls revision, Wednesday
• Eurozone HCOB PMI, consumer confidence, Thursday
• ECB publishes account of July rate decision, Thursday
• US initial jobless claims, existing home sales, S&P Global PMI, Thursday
• Japan CPI, Friday
• Bank of Japan Governor Kazuo Ueda to attend special session at Japan’s parliament to discuss July 31 rate hike, Friday
• US new home sales, Friday
• Fed Chair Jerome Powell speaks at Jackson Hole symposium in Wyoming, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.1% as of 10:05 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index rose 0.5%
• The MSCI Emerging Markets Index rose 0.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.1080
• The Japanese yen was little changed at 146.50 per dollar
• The offshore yuan was little changed at 7.1390 per dollar
• The British pound was little changed at $1.3001

Cryptocurrencies

• Bitcoin rose 3% to $60,888.74
• Ether rose 1.8% to $2,664.19

Bonds

• The yield on 10-year Treasuries was little changed at 3.87%
• Germany’s 10-year yield was little changed at 2.24%
• Britain’s 10-year yield was little changed at 3.93%

Commodities

• Brent crude fell 0.7% to $77.09 a barrel
• Spot gold rose 0.7% to $2,521.70 an ounce

This story was produced with the assistance of Bloomberg Automation.