U.S. results: Hasbro, Simon Property <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Underperforming FTSE slowly catches up U.S. unemployment jpg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anshuman Daga; Editing by Bradley Perrett)
A look at the day ahead in European and global markets from
Anshuman Daga
Last week, the Federal Reserve and the European Central Bank
raised interest rates as expected and flagged that credit
conditions would remain as tight as necessary to tame inflation.
Still, stocks rallied and bond yields fell as markets priced
in lower rates. The two asset classes enjoyed one of the best
Januaries on record.
Now, it appears that some of these expectations were a load
of hot air.
And just as a U.S. military fighter jet shot down a
suspected Chinese spy balloon, Friday's blowout U.S. jobs growth
data has dashed market hopes that the Fed was close to pausing
its monetary policy tightening cycle.
Futures are almost fully priced for a quarter point
rate rise in March, and likely another in May, leaving the peak
at 5.0%, compared with 4.9% ahead of the jobs data.
The U.S. jobs data showed the unemployment rate hit more
than a 53-1/2-year low of 3.4%.
On Monday, as investors pondered U.S. rate increases, Asian
equity markets fell 1.9% and were heading for
their worst day in three months. The safe-haven dollar
strengthened after its recent underperformance.
U.S. stock futures traded lower and FTSE futures indicated a weaker start for British stocks , which
vaulted to a record high on Friday. European index futures also
traded lower.
Meanwhile, ECB Governing Council member Ignazio Visco, who
is also the Bank of Italy's governor, said on Saturday that the
ECB could take a cautious approach to increasing interest rates
as short-term inflation expectations had dropped sharply and
longer-term ones remained under control.
The ECB raised its key rate by 50 basis points to 2.5% last
week and said it would replicate the move in March.
This week, investors will focus on results from a swathe of
companies, including BP , Unilever and banks such
as BNP Paribas , Societe Generale and
troubled Credit Suisse .
In Britain, tens of thousands of nurses and ambulance
workers were set to walk out on Monday in an escalating pay
dispute with the government, in a move that spelt further
disruption for an already strained health system.
The walkout, largely in England, will represent the biggest
in the 75-year history of the National Health Service.
Another record was set at the Grammy awards, but a happy one
for pop superstar Beyonce, who broke all-time Grammy wins on
Sunday by picking up four and was in the running for more,
including the prestigious best album accolade.
Key developments that could influence markets on Monday:
Economic data: Euro zone Feb sentix survey, Dec retail
sales; Global PMIs Jan, final; German Dec industrial orders;
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