Stocks rose and futures signaled gains for U.S. equities on their first day of trading in 2023. The yen gave up its gains while gold traded at the highest level in more than six months.
(Bloomberg) — Stocks rose and futures signaled gains for U.S. equities on their first day of trading in 2023. The yen gave up its gains while gold traded at the highest level in more than six months.
Contracts on the S&P 500 rose, and European equities climbed after tepid trading in thin volume on Tuesday. Stocks in Hong Kong and mainland China stocks rallied after initial declines.
Investors are kicking off 2023 with tempered expectations after sharp swings last year saw 20% in value wiped out from global equities, the worst showing since the financial crisis. Bonds lost 16%, the biggest decline since at least 1990 for one leading measure, as central banks hiked interest rates to slow inflation.
“We’re starting the year with tight financial conditions, a potential inflation pulse coming out of China and by extension that means we’ll probably have to go into the start of this calendar year relatively cautious across the whole portfolio,” Marc Franklin, senior portfolio manager for Manulife Investment Management, said in an interview with Bloomberg Television.
A dollar gauge advanced after two days of declines. The yen briefly strengthened to a six-month high versus the greenback as Japan’s decision to raise its bond-yield cap last month stoked bets the nation may tighten policy even more. The Japanese currency later erased the gains.
Read more: As Roads Split in 2022 Stocks, One Trade Made All the Difference
Elsewhere, oil prices rose while the price of US natural gas fell as warmer weather was expected to reduce demand for heating.
On the data front, a private China purchasing managers index contracted for the fifth consecutive month.
Read more: Treasury Strategists Expect Lower Yields, Steeper Curve in 2023
The main markets moves are:
Stocks
- The Stoxx Europe 600 rose 1.1% as of 8:33 a.m. London time
- S&P 500 futures rose 0.7%
- Nasdaq 100 futures rose 0.6%
- Futures on the Dow Jones Industrial Average rose 0.6%
- The MSCI Asia Pacific Index rose 0.4%
- The MSCI Emerging Markets Index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index rose 0.7%
- The euro fell 1% to $1.0561
- The Japanese yen was little changed at 130.86 per dollar
- The offshore yuan rose 0.2% to 6.9133 per dollar
- The British pound fell 0.9% to $1.1940
Cryptocurrencies
- Bitcoin fell 0.2% to $16,711.66
- Ether fell 0.4% to $1,214.62
Bonds
- The yield on 10-year Treasuries declined seven basis points to 3.80%
- Germany’s 10-year yield advanced two basis points to 2.46%
- Britain’s 10-year yield declined two basis points to 3.65%
Commodities
- Brent crude rose 0.2% to $86.10 a barrel
- Spot gold rose 0.8% to $1,838.10 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jason Scott and Tassia Sipahutar.
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