February 13, 2023
US Futures Edge Higher at Start of a Crunch Week: Markets Wrap
Wall Street equity futures crept higher and European stocks climbed as investors positioned themselves for an action-packed week. Key events include Tuesday’s release of US consumer price data that may confirm the inflation battle isn’t over, dashing hopes of a Federal Reserve rate pivot.
Contracts on the S&P 500 gained about 0.2% while those on the tech-heavy Nasdaq 100 advanced 0.5%, signaling something of a rebound for the underlying index after its first weekly loss of 2023. Sorrento Therapeutics Inc. slumped in premarket trading after the drug developer filed for Chapter 11 bankruptcy protection in Texas. Europe’s Stoxx 600 index was lifted by construction, industrial goods and consumer stocks while energy and real estate underperformed.
Euro Zone Is Seen Dodging Recession as Energy Crunch Eases
The euro-zone economy will fare better this year than previously feared as a mild winter and high levels of gas storage help to ease the energy crisis, and the labor market holds up, according to the European Commission.
European Union officials in Brussels raised their forecast for growth this year, predicting a 0.9% expansion in the currency bloc, and said it would narrowly avoid a recession. They also cut their projection for consumer price growth, though it remains high at 5.6%.
Bank of Japan Policy Outlook Has Yen Volatility Overtaking Peers
The Japanese yen is not taking part in the great moderation.
Forward-looking measures of equity and bond volatility around the world have been largely sliding this year on hopes that China’s reopening and disinflation will help the global economy navigate a soft landing.
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