(Bloomberg) — European stock futures fell, mirroring Asian shares, as a Chinese economic conference readout disappointed traders and risk appetite weakened ahead of next week’s Federal Reserve meeting.
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Euro Stoxx 50 contracts declined 0.2%, with a gauge of world stocks heading for the worst week in nearly a month. Contracts for the S&P 500 index edged up Friday, following selling Thursday on Wall Street prompted by US jobless claims and producer price data.
In Asia, shares in China and Hong Kong led the region’s declines after China’s Central Economic Work Conference ended without policy details on fiscal stimulus even as authorities pledged to boost consumption. But their vow to cut policy rates as well as banks’ reserve ratios sent the Chinese 10-year government bonds to slide below 1.8% for the first time in history.
“The market may have some hope that the CEWC would give more details on consumption stimulus and property inventory clearance packages, but the turnout was a bit disappointed,” said Jason Chan, senior investment strategist of Bank of East Asia. “Investors may need to wait for more fiscal policy rollout in the first quarter.”
An index of dollar strength was little changed, holding on to gains from the previous five sessions. The stronger dollar was helped along by higher Treasury yields.
In Japan, confidence among large firms remained upbeat, broadly in line with the Bank of Japan’s view ahead of a policy meeting next week that’s dividing analyst opinions over whether a rate hike is coming.
South Korea’s equity benchmark climbed, briefly recovering from all the losses triggered by President Yoon Suk Yeol’s failed bid to impose martial law. A local newspaper, Munhwa Ilbo, reported that more than eight members from South Korea’s ruling People Power Party support Yoon’s impeachment motion, a minimum vote total required for approval.
Shares of data center operator DigiCo Infrastructure REIT slumped as much as 10% in their A$2 billion ($1.3 billion) debut in Sydney on Friday, with market watchers citing valuation concerns.
In India, government data showed India’s inflation cooled last month, bringing some relief to the newly-appointed central bank chief.
Rate Cuts
The European Central Bank trimmed borrowing costs by 25 basis points as expected and indicated it may deliver further cuts in its upcoming meetings. The Swiss National Bank delivered a 50 basis point cut, more than anticipated.
