(Bloomberg) — European stocks advanced as traders braced for a wave of economic data releases, U.S. mega-cap earnings and central bank decisions that will be key to shaping the market’s trajectory.
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The Stoxx 600 index rose 0.2% while U.S. futures were little changed. Shares of BP Plc strengthened after it kept up the pace of share buybacks and raised its dividend on a profit that outpaced the dollar.
The dollar index and 10-year Treasury yields were little changed.
A series of key economic releases will begin on Tuesday with the release of euro zone gross domestic product data, followed by a measure of U.S. consumer confidence and the survey of job openings and labor turnover.
Among the so-called Magnificent Seven tech stocks, Microsoft Corp. is scheduled to report results after the close, while Apple Inc. and Amazon.com Inc. are scheduled to report later this week.
Monetary policy decisions by the Bank of Japan and the U.S. Federal Reserve on Wednesday, followed a day later by those of the Bank of England, will also be in focus.
“Market participants are de-risking ahead of major events looming this week, from key central bank meetings to earnings from major technology companies,” said Charu Chanana, strategist at Saxo Capital Markets in Singapore.
In Asia, the MSCI Asia Pacific index is headed for its first monthly decline since April. Hong Kong stocks posted the biggest losses on Tuesday as optimism faded over the Chinese government’s stimulus plans.
The yen weakened against all its Group of 10 peers on speculation that the BOJ’s monetary policy tightening would be too slow to reduce the appeal of yen-funded carry trades.
U.S. policymakers, who have held rates at their highest level in more than two decades for a year, are widely expected to leave them unchanged on Wednesday. Investors still believe policymakers could announce a decision in September, as risks of undermining a strong but slowing jobs market rise.
Commodities erased all their gains this year as a tough outlook in China, combined with a selloff in U.S. natural gas and losses in food, weighed on commodities.
Main events of the week:
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Eurozone Economic Confidence, GDP, Consumer Confidence, Tuesday
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US JOLTS job openings, consumer confidence, Tuesday
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Microsoft Results, Tuesday
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Eurozone CPI, Wednesday
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Bank of Japan Monetary Policy Decision on Wednesday
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U.S. employment change according to ADP, Wednesday
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Fed Rate Decision Wednesday
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Meta Platforms Results, Wednesday
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Eurozone S&P Global Manufacturing PMI, Unemployment, Thursday
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U.S. Initial Jobless Claims, ISM Manufacturing, Thursday
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Amazon and Apple earnings, Thursday
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Bank of England rate decision on Thursday
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US employment, factory orders, Friday
Some of the main movements in the markets:
Actions
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The Stoxx Europe 600 index rose 0.2% at 8:22 a.m. London time.
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S&P 500 futures were little changed
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Nasdaq 100 futures were little changed
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Dow Jones Industrial Average futures were little changed
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The MSCI Asia-Pacific index fell 0.5%
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The MSCI emerging markets index fell 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 $1.0824.
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The Japanese yen fell 0.6 percent to 154.94 per dollar.
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The offshore yuan was little changed at 7.2658 per dollar.
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The pound was little changed at $1.2857.
Cryptocurrencies
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Bitcoin fell 0.8% to $66,855.45
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Ether rose 0.6% to $3,339.93
Obligations
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The 10-year Treasury yield was little changed at 4.18%
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Germany’s 10-year yield was little changed at 2.35%.
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Britain’s 10-year yield was little changed at 4.06%.
Raw materials
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Brent crude oil fell 0.4% to $79.49 a barrel
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Spot gold rose 0.3% to $2,390.21 an ounce
This story was produced with assistance from Bloomberg Automation.
–With assistance from Aya Wagatsuma and Winnie Hsu.
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