U.S. stocks and futures fall as brutal year draws to a close: markets recap

(Bloomberg) — European equities slipped alongside US stock futures on the final trading day of 2022, ending the worst year in more than a decade for global equities and bonds.

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Technology stocks led the Stoxx Europe 600 index, with all industries in the red. S&P 500 futures fell about 0.5%, depriving themselves of the best day this month for the US index on Thursday, when it jumped 1.7%. Nasdaq 100 contracts also tumbled after the benchmark index jumped 2.5% on Thursday. The index has lost a third of its value this year as tech stocks have been among the most vulnerable to rising rates.

The dollar bounced back from the previous session and traded flat, with Treasury yields up slightly and the yen up as the Bank of Japan announced an unprecedented third day of unplanned bond buying.

Uncertain direction shattered hopes for a stellar rally in late 2022, a year in which inflation reasserted itself, wiping out a fifth of the value of global stocks in its worst performance since the financial crisis. Bonds lost 16% in value, the biggest drop for a single leading measure since at least 1990, as central banks sought to slow consumer price growth by raising interest rates around the world.

Elsewhere, oil edged higher after a three-day decline on worries about rising crude inventories and fears that rising Covid-19 cases in China will dampen demand for one of the world’s biggest oil importers.

Some of the major movements in the markets are:

Stock

• The Stoxx Europe 600 was down 0.4% as of 8:11 am London time.

• S&P 500 futures fell 0.5%

• Nasdaq 100 futures fell 0.6%

• Dow Jones Industrials futures fell 0.3%

• The MSCI Asia Pacific Index rose 0.5%.

• The MSCI Emerging Markets Index rose 0.1%.

The story goes on

Currencies

• Bloomberg Spot Dollar Index Little Changed

• The euro changed slightly at $1.0660.

• The Japanese yen rose 0.8% to $132.03 per dollar.

• The offshore yuan rose 0.1% to 6.9639 per dollar.

• The British pound was almost unchanged at $1.2065.

Cryptocurrencies

• Bitcoin fell 0.7% to $16,474.49.

• Ether fell 0.5% to $1,189.26.

Bonds

• The 10-year Treasury yield rose one basis point to 3.83%.

• The yield on German 10-year bonds rose five basis points to 2.49%.

• The yield on British 10-year bonds rose by three basis points to 3.69%.

Goods

• Brent crude rose 0.6% to $83.92 a barrel.

• Spot gold rose 0.1% to $1,817.62 an ounce.

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Jan-Patrick Barnert.

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