November 6, 2023
United States:
Stocks Hold Gains After Big Rally on Fed Rates: Markets Wrap
Stock and bond markets steadied after last week’s blockbuster rally, with traders still optimistic that US and European central banks may start cutting interest rates as soon as next year.
US futures added about 0.1%, with Tesla Inc. gaining in premarket trading after Reuters reported the company would produce a new, more affordable electric car model in Germany. WeWork Inc. shares were halted for pending news, following a report the company was preparing to file for bankruptcy. Europe’s Stoxx 600 index pulled back slightly after recent gains.
Europe:
Euro-Area Firms Shift Operations on Geopolitics Worries, ECB Finds
Large corporations in the euro area are relocating production across the globe more actively as geopolitical risks rise, according to a survey by the European Central Bank.
While more traditional motivations like lowering expenses are still driving firms to go outside the European Union, increased uncertainty was cited as a reason for recent or planned moves into the bloc, the ECB said in a research article published Monday. Activity in both directions is expected to pick up over the next five years.
Asia:
BOJ’s Ueda Signals Low Chance of Ending Negative Rate in 2023
Bank of Japan Governor Kazuo Ueda signaled it’s unlikely policymakers will have the data needed to declare by year-end that it’s time to put an end to negative interest rates, as he continues to monitor whether a wage-inflation cycle will materialize.
“It’s impossible to say the chances are zero, in truth,” that authorities might be able to discern within the year that the BOJ’s 2% inflation target has been met, Ueda told reporters in Nagoya, Aichi Prefecture, on Monday. “But, as I just said, there are less than two months” left in 2023, he said, implying the likelihood of such an outcome is quite low.
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