(Bloomberg) — U.S. stock futures rose and U.S. Treasuries fell after U.S. lawmakers reached a deal over the weekend to avert a government shutdown.
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S&P 500 futures rose 0.4% after passing a compromise bill to keep the government running on Saturday. The yield on the 10-year U.S. Treasury rose 5 basis points to 4.61%, the highest level since 2007.
Investors were also waiting for comments from Federal Reserve Chairman Jerome Powell, who is scheduled to speak at a roundtable discussion along with Philadelphia Fed President Patrick Harker. Their views will be particularly interesting after New York Fed President John Williams suggested on Friday that interest rates should remain high for some time.
Some traders said the market could bring forward bets on a November interest rate hike following the U.S. government’s funding deal. Data compiled by Bloomberg puts the odds of swaps moving in November at just under one-third.
“While there is an element of relief as financial markets were bracing for a shutdown, this is just a temporary lifting of one of the clouds currently hanging over the market,” said Yunyou Ma, chief investment officer at BMO Wealth Management. ” he said. “Interest rates and the Fed’s hawkish stance remain key factors and will be the main drivers of markets in the coming weeks.”
Read more: Traders win relief after ‘political circus’ of shutdown fight
Meanwhile, benchmark indexes in Europe fell, weighed down by declines in pharmaceutical company stocks. Asset management company Mandatum has made its debut on the Helsinki stock market, making it the biggest listing in five years.
Tech stocks led gains in U.S. premarket trading, with Goldman Sachs Group strategists expecting the sector to perform well, benefiting from lower valuations and lower bond yields after a recent selloff. did.
Meanwhile, the dollar edged up against the Group of Ten (G10) countries after having its best quarter in a year. Against the yen, the currency briefly hit a year-to-date high of 149.82 yen, following the Bank of Japan’s announcement that it would carry out additional buying operations.
This week’s main events:
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China has a week’s vacation
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Bank of England policymaker Katherine Mann speaks on monetary policy on Monday
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Fed Chairman Jerome Powell and Philadelphia Fed President Patrick Harker participate in Monday’s roundtable discussion
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New York Fed President John Williams moderates discussion on climate risks on Monday
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Cleveland Fed President Loretta Mester speaks on economic outlook Monday
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US ISM Manufacturing Business Index, Monday
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Australian interest rate decision Tuesday
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Atlanta Fed President Rafael Bostic speaks on economic outlook and inflation Tuesday
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August US JOLTS Report, Tuesday
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Eurozone services and composite PMI, Wednesday
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ECB President Christine Lagarde gives welcome speech at Wednesday’s meeting
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US ISM Services Index, Wednesday
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French industrial production Thursday
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BOE Deputy Governor Ben Broadbent and Riksbank First Deputy Governor Anna Breman will participate in Thursday’s panel discussion
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San Francisco Fed President Mary Daly speaks at the Economic Club in New York on Thursday
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Order from German factory, Friday
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September U.S. nonfarm payrolls, Friday
The main movements in the market are:
stock
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As of 5:33 a.m. New York time, S&P 500 futures were up 0.2%.
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Nasdaq 100 futures rose 0.4%
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Dow Jones Industrial Average futures rose 0.2%.
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Stoxx European 600 falls 0.3%
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MSCI World Index falls 0.2%
currency
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Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.3% to $1.0543.
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The British pound fell 0.2% to $1.2176.
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The Japanese yen fell 0.2% to 149.72 yen to the dollar.
cryptocurrency
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Bitcoin rises 4.4% to $28,317.19
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Ether rose 3.6% to $1,734.7
bond
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The 10-year Treasury yield rose 5 basis points to 4.62%.
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Germany’s 10-year bond yield rose 4 basis points to 2.87%.
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The UK 10-year bond yield rose 6 basis points to 4.49%.
merchandise
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West Texas Intermediate crude rose 0.5% to $91.20 a barrel.
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Gold futures fell 0.7% to $1,851 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Matthew Burgess and Joanna Ossinger.
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