Stocks Gain; Yen and Yuan Surge Halts Dollar Rally: Markets Wrap

European stocks and US futures climbed on optimism China’s economy may be stabilizing and wagers the US will curb inflation without hurting growth.

(Bloomberg) — European stocks and US futures climbed on optimism China’s economy may be stabilizing and wagers the US will curb inflation without hurting growth.

The Stoxx 600 rose 0.5% at the open, while US contracts pointed to gains on Wall Street. The dollar halted a four-day rally as the Japanese yen and Chinese yuan rallied after remarks by their central banks propped up Asia’s worst-performing currencies.

Alongside its climbing currency, China’s credit demand improved and deflationary pressures eased, adding to recent signs the economy and financial markets may be on the mend. Speaking over the weekend, US Treasury Secretary Janet Yellen said she’s increasingly confident that the US will be able to contain inflation without major damage to the job market.

The dollar fell against all of its Group-of-10 counterparts after its recent rally drove the currency to a record streak of weekly gains. The greenback has been bolstered by bets the Fed will keep interest rates higher for longer and traders will be looking to US inflation data on Wednesday for signs on the future path of rates.

The yen extended gains to more than 1% against the greenback after BOJ Governor Kazuo Ueda told the Yomiuri newspaper there may be sufficient information by year-end to judge if wages will continue to rise, which is a key factor in deciding whether to pare back its super-easy policy.

China’s yuan rebounded from a 16-year low after the People’s Bank of China set Monday daily fixing at stronger-than-expected by a record margin and warned of action to correct one-sided moves in the market whenever it’s needed.

Both currencies lost more than 0.3% Friday, making them the region’s worst performers. 

Elsewhere, Arm Holdings Ltd. is considering raising the price range of its initial public offering after meeting investors for what would be the world’s largest listing this year, according to people familiar with the matter.

Oil declined after a two-week rally and gold rose by the most in nearly two weeks.

Key events this week

  • UK jobless claims, unemployment, Tuesday
  • Eurozone industrial production, Wednesday
  • UK industrial production, Wednesday
  • US CPI, Wednesday
  • Eurozone ECB rate decision, Thursday
  • Japan industrial production, Thursday
  • US retail sales, PPI, business inventories, initial jobless claims, Thursday
  • China property prices, retail sales, industrial production, Friday
  • US industrial production, University of Michigan consumer sentiment, Empire Manufacturing index, Friday

Some of the main moves in markets:


  • The Stoxx Europe 600 rose 0.5% as of 8:05 a.m. London time
  • S&P 500 futures rose 0.3%
  • Nasdaq 100 futures rose 0.5%
  • Futures on the Dow Jones Industrial Average rose 0.2%
  • The MSCI Asia Pacific Index rose 0.5%
  • The MSCI Emerging Markets Index rose 0.1%


  • The Bloomberg Dollar Spot Index fell 0.5%
  • The euro rose 0.3% to $1.0732
  • The Japanese yen rose 1.2% to 146.04 per dollar
  • The offshore yuan rose 0.9% to 7.3013 per dollar
  • The British pound rose 0.4% to $1.2518


  • Bitcoin was little changed at $25,835.45
  • Ether fell 0.2% to $1,615.07


  • The yield on 10-year Treasuries advanced two basis points to 4.28%
  • Germany’s 10-year yield advanced two basis points to 2.63%
  • Britain’s 10-year yield advanced three basis points to 4.45%


  • Brent crude fell 0.2% to $90.45 a barrel
  • Spot gold rose 0.5% to $1,928.76 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Brett Miller and Tania Chen.

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