European stocks, U.S. futures slip on rate-hike bets - BNN Bloomberg

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Stocks in Europe declined amid disappointing results from large clothing retailers and worries over Credit Suisse Group AG. U.S. equity futures edged lower and short-end Treasury yields rose as sticky inflation supported bets for further Federal Reserve…

The two-year Treasury yield — the most sensitive to policy moves — climbed six basis points, adding to Tuesday's 27-point rise, while the 10-year rate dipped four basis points. Contracts on the S&P 500 and Nasdaq 100 fluctuated before turning lower even as a rebound in regional banks continued in premarket trading. A gauge of dollar strength edged higher after four days of declines.

Swaps pricing is back to positioning for the Fed to lift rates by a quarter percentage point next week after the odds of an increase had slipped to nearly 50-50 on Monday. The closely-watched core consumer price index increased 0.5 per cent in February, slightly ahead of the median estimate of 0.4 per cent and enough to keep pressure on policy makers.

Traders were also digesting a slew of economic data from China, where retail sales rose as much as estimated while factory output was fractionally lower than projected. The People's Bank of China added more liquidity than expected while holding a key lending rate unchanged. Rising housing sales provided one clearly positive signal, reflected in a rally in a mainland property index.

Remarks from ratings companies on the financial sector underscored that sentiment is likely to remain fragile after the biggest American bank failures since the financial crisis.

 

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