news/AMZN/2023.01.30/Stocks dip, U.S. yields rise ahead of central bank flurry.txt

*Fed seen hiking 25 bps, ECB and BOE by 50 bps*Megacap stocks lead earnings results this week*MSCI index on track for biggest January pct gain since
2019NEW YORK, Jan 30 (Reuters) - A gauge of global stocks
dipped on Monday after six sessions of gains while the yield on
the U.S. ten-year Treasury rose for a third day, ahead of
central bank policy announcements and data that may shed light
on whether progress has been made in bringing down inflation.Investors widely expect the Federal Reserve will raise rates
by 25 basis points (bps) on Wednesday, with announcements on
Thursday from the Bank of England and European Central Bank
(ECB), both of which are largely expected to hike by 50 bps."This is probably a week where we are going to have a year’s
worth of surprises possibly, so it makes sense to me there is a
little bit of profit taking, some positioning ahead of some very
important meetings but also data releases," said Brian Jacobsen,
senior investment strategist at Allspring Global Investments in
Menomonee Falls, Wisconsin."(The Fed) would rather err on the side of sounding too
hawkish but talk is cheap - they are at the point now with the
hiking cycle where what really matters is what the data says and
what the Fed delivers."The Dow Jones Industrial Average fell 89.41 points,
or 0.26%, to 33,888.67, the S&P 500 lost 36.23 points, or
0.89%, to 4,034.33 and the Nasdaq Composite dropped
200.13 points, or 1.72%, to 11,421.58.The rate increase expected at the Federal Open Market
Committee's Jan. 31-Feb. 1 meeting would bring the policy rate
to the 4.5%-4.75% range. That's two quarter-point rate hikes
short of the level most Fed policymakers in December thought
would be "sufficiently restrictive" to bring inflation under
control. But futures currently expect rates to peak at
about 4.9% in June before retreating to 4.5% by year-end.Markets will also grapple with a host of U.S. economic data,
culminating in Friday's payrolls report for January. Investors
see signs of weakening in the labor market as a key factor in
bringing down high inflation. Other data included gauges of the
manufacturing and services sectors.The U.S. corporate earnings season also remains in high
gear, with earnings this week expected from the likes of Apple
, Alphabet and Amazon. Earnings for
S&P 500 companies are expected to show a decline of 3% for the
quarter, per Refinitiv data, weaker than the 1.6% fall seen at
the start of the year.Stocks in Europe were also lower, with rate-sensitive names
such as technology shares among the primary decliners.The pan-European STOXX 600 index lost 0.30% and
MSCI's gauge of stocks across the globe shed
0.68%. MSCI's index was on track for its biggest January
percentage gain since 2019 while the STOXX 600 was poised for
its largest January percentage gain since 2015.U.S. Treasury yields rose ahead of the central bank meetings
and economic data, with the 10-year yield up for a third
consecutive session. Benchmark 10-year notes were up
2.4 basis points to 3.542%, from 3.518% late on Friday.The greenback, which was poised for its fourth month of
declines as expectation have increased the Fed was nearing the
end of its rate-hiking cycle, was up slightly.The dollar index rose 0.098%, with the euro up
0.08% to $1.0876.The Japanese yen weakened 0.34% versus the greenback to
130.31 per dollar, while Sterling was last trading at
$1.2379, down 0.15% on the day.Crude prices fell ahead of the expected hikes by central
banks and signals of strong Russian exports.U.S. crude was down 1.13% at $78.78 per barrel and
Brent was at $85.75, down 1.05% on the day.(Reporting by Chuck Mikolajczak
Editing by Bernadette Baum)