The Stoxx 600 Index erased an early advance to trade little changed. US equity futures ticked lower after the best two-day rally since November for the tech-heavy Nasdaq 100. Treasury yields fell for the first day in four.
Expectations the Fed will moderate its tightening campaign are driving a new year rally for assets from tech to emerging markets. That's also sapped dollar strength and given breathing room to importers outside of the world's biggest economy. A gauge of greenback strength was slightly lower, with the currency also showing weakness versus all of its Group-of-10 counterparts. The rebound in risk assets will be tested this week by a wave of US corporate earnings, especially for marquee names like Microsoft Corp. and Intel Corp. that will help shape the outlook for the technology sector.
Elsewhere in markets, oil steadied as traders waited for fresh signals on the state of Chinese crude demand after the nation ditched COVID curbs. Copper steadied near the highest level in seven month and gold held a small gain.ECB President Christine Lagarde delivers a video message on “the euro as a guarantee of resilience,” TuesdayU.S.
U.S. personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, FridayThe Stoxx Europe 600 was little changed as of 8:44 a.m. London timeFutures on the Dow Jones Industrial Average were little changedCurrenciesThe Japanese yen rose 0.5 per cent to 129.99 per dollarThe British pound rose 0.1 per cent to US$1.2397BondsGermany's 10-year yield declined three basis points to 2.