Stocks, bonds steady after two-day selloff; crude gains

BLOOMBERG

Stocks and bonds steadied after a bruising two-day selloff to start 2024. Oil advanced as conflict in the Middle East added to supply concerns. Europe’s Stoxx 600 added 0.4% as Shell Plc and BP Plc gained after crude jumped more than 4% in two sessions. Next Plc rallied after the British home and clothing retailer raised its profit forecast. US equity futures also edged higher. The 10-year Treasury yield was little changed at 3.93%.
Attention now turns to upcoming US jobs data on Friday as investors look for further clues on the timing of possible interest-rate cuts this year. On January 3, minutes from the Fed’s December meeting suggested rates could remain at restrictive levels “for some time.”
“There was some sort of a ‘dry January’ syndrome across markets these two last sessions,” said Vincent Juvyns, global market strategist at JPMorgan Asset
Management. “The prospects for equity markets remain positive.”
In Europe, French month-on-month inflation ticked up less than economists forecast and investors will be watching a reading from Germany later Thursday. Euro-area figures are due Friday. Yields on French and German bonds were little changed. Chinese stocks remained the biggest drag in Asia following a report that showed wages offered to Chinese workers in major cities declined by the most on record. Chinese government bond yields, meanwhile, fell to the lowest in more than three years, while the offshore yuan was steady.