July 10, 2024
United States:
Stocks Hold Tight as Powell Back to Capitol Hill: Markets Wrap
Stocks hovered near all-time highs, with traders hoping to get more clues on the Federal Reserve’s outlook as Jerome Powell concludes two days of Congressional hearings.
Equities rose for a seventh straight day, driving the S&P 500 toward its longest winning run since November. Treasuries stabilized amid firming bets the Fed will be able to ease policy before the year is over. In fact, swap traders are pricing in about two quarter-point cuts in 2024, with a roughly 70% chance the first comes at the September policy gathering.
Europe:
Europe Prepares to Follow US Switch to T+1 as Soon as 2027
European financial markets look primed to follow the US example of switching to a one-day settlement cycle, with officials considering a move in the final months of 2027.
The European Securities and Markets Authority is lining up the fourth quarter of 2027, the first quarter of 2028 or the fourth quarter of 2028 as potential targets for accelerating security settlement times from two days to one, according to Antonio Ocaña Alvarez, a policy officer at the regulator. In a poll conducted at a public hearing Wednesday, around 70% of respondents called for the switch to happen in 2027.
Asia:
China Consumer Prices Inch Up But Deflation Pressure Lingers
China’s consumer prices eked out another small gain in June, hovering near zero for a fifth month, a sign that deflationary pressures continue to impede an economic recovery.
The consumer price index rose 0.2% from a year earlier, the National Bureau of Statistics said Wednesday. That compares with an increase of 0.3% in May and a median forecast of 0.4% in a Bloomberg survey of economists.
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