Stocks advance as traders await raft of economic data

BLOOMBERG

European stocks gained for a second day as traders awaited a raft of economic figures over the next few days for clues on the outlook for global central bank policies. Miners and real estate led the advance in the Stoxx Europe 600 index after China pledged further measures to support its economy.
NN Group NV jumped more than 10% after the financial-services company reported results that beat analysts’ expectations. Futures on the S&P 500 and Nasdaq 100 fluctuated, suggesting US stocks will struggle to build on the solid gains. Treasury yields dipped, while a gauge of the dollar was steady.
Despite this week’s gains, global stocks are on track for their worst month in almost a year as policy makers remain determined to stifle inflation. Economic reports are assuming even more importance than usual after Federal Reserve Chair Jerome Powell reiterated at Jackson Hole last week that the central bank is ready to raise rates further if the data suggests that is appropriate.
“August has been a challenging month for markets, with investor sentiment cautiously picking up again,” said Victoria Scholar, head of investment at Interactive Investor. “Focus will be on key economic data from the US this week, with hopes that this will fuel expectations that the economy stateside is heading for a soft landing.”
Traders were expected to monitor US consumer confidence data on Tuesday. Other reports include US employment growth, the core PCE deflator and August’s payrolls and wages data. Euro-area inflation readings will be in focus this week as well.
Meanwhile, the UK’s stock benchmark outperformed after the slowest increase in grocery bills in almost a year drove down inflation in shops in August, relieving some of the pressure on the Bank of England to keep raising interest rate hikes. An Asian equity gauge rose 0.8%, supported by gains across major indexes in the region.
The Hang Seng Index  extended its increase into a second day and China’s stocks outperformed, with the Hang Seng China Enterprises Index rising more than 2%. Chinese officials pledged to strengthen policy support and speed up government spending, according to the official Xinhua News Agency.
“If policy measures continue to be unveiled in the coming weeks, the market narrative may shift from ‘too little, too late’ to a more confident stance as policymakers regain credibility,” UBS Global Wealth Management strategists including Solita Marcelli and Mark Haefele wrote in a note.
Strategists at Goldman Sachs Group Inc expect the yen to depreciate to levels last seen more than 30 years ago if the Bank of Japan sticks to its dovish stance.