Treasuries Rise With Dollar on Solid Jobs Demand: Markets Wrap

(Bloomberg) -- Treasury yields rose and a gauge of the dollar reversed a loss after the latest data suggested the US economy remains resilient, just a week before Federal Reserve officials meet to decide on interest rates.

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The US economy expanded at a robust pace in the third quarter as households and businesses stood tall in the face of global headwinds and uncertainty ahead of the November election.

An earlier report showed hiring at US companies accelerated by the most in over a year, pointing to surprisingly solid demand for workers. Private payrolls increased by 233,000 in October, according to the ADP Research Institute. That exceeded all estimates in a Bloomberg survey.

US equity-index futures were steady as investors sifted through corporate earnings, with results from Microsoft Corp. and Meta Platforms Inc. coming later in the day. Gold and Bitcoin traded near all-time highs.

Alphabet Inc. rallied more than 6% in premarket trading after the Google parent’s earnings beat estimates, while Advanced Micro Devices Inc. sank 8% after a lackluster revenue forecast. Eli Lilly & Co. tumbled 10% after sales of its blockbuster weight-loss drug fell short of expectations. Qorvo Inc., whose biggest customer is Apple Inc., tumbled 19% after forecasting revenue and profit far short of estimates. 

In Europe, the Stoxx 600 index fell more than 1% amid a deluge of earnings, with all eyes on the UK budget later Wednesday. The euro area’s economy expanded more strongly than expected in the third quarter, data showed Wednesday — with even Germany avoiding the recession it was widely tipped to endure. A measure of economic confidence, however, unexpectedly declined.

GSK Plc fell after reporting lower-than-expected sales for two of its blockbuster vaccines. Nexans SA plunged 10% after missing revenue estimates, while Amundi SA dropped more than 5% after net inflows fell short of estimates. Puig Brands SA surged after reporting a jump in revenue. UBS Group AG climbed after an earnings beat, while Standard Chartered Plc rose after boosting returns to shareholders.

MSCI’s Asian equity benchmark slipped, dragged lower by losses of more than 1% in mainland China and Hong Kong stocks.

Oil steadied after a two-day decline on the prospect for a further easing of hostilities in the Middle East. Gold hit a fresh record early on Wednesday as traders weighed potential market disruption ahead of the election. Bitcoin, seen as a Trump trade, held above $72,000, on the cusp of topping its March high.  

Key events this week:

Some of the main moves in markets:

Stocks

Currencies

Cryptocurrencies

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

--With assistance from John Cheng and Winnie Hsu.

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