Stocks Steady as Yields Stabilize; Yen Strengthens – Europe Market Wrap
US stock futures were little changed as bond yields stabilized near multi-year highs. Tech remained in focus, with Broadcom falling premarket after underwhelming results, while Hewlett Packard Enterprise slipped after guidance missed expectations.
Markets remained cautious after global bonds came under renewed pressure, with oil prices also rising and adding to inflation concerns. Attention is now shifting toward Friday’s US jobs report for clues on the economy and the Fed policy outlook.
The Yen strengthened as much as 1.5% to around 156.30 per Dollar, supported by speculation over increased domestic investment flows and the possibility of Japanese currency intervention.
The Yen later pared some gains after reports suggested BoJ officials are leaning toward a 25 bps rate hike this month, reducing expectations for a larger move while keeping the future pace of tightening flexible.
European stocks edged higher, with the Stoxx 600 gaining around 0.1% and snapping a three-day decline. Soitec surged 14% after raising guidance, while Publicis rose after winning PepsiCo’s $1.7 billion global media account.
