Stocks head for their biggest weekly decline of the year

By Mark Jones

LONDON, Feb 24 (Reuters) – Global stocks were heading for their biggest weekly decline of the year on Friday, although investors were encouraged by falling government bond yields as the new head of the Bank of Japan has ruled out an early end to its ultra-loose monetary policy. policy.

* Attention also turned to the one-year anniversary of Russia’s invasion of Ukraine, or a “special military operation” as Russia calls it, as both Washington and Beijing called for peace but also warned of a wider escalation.

* European stock markets opened higher, with the pan-European STOXX 600 up 0.4%, although overnight falls in Asia and falling Wall Street futures prices meant that the stock measure MSCI’s global markets will operate in the red.

* At a parliamentary confirmation hearing, Kazuo Ueda, who will take over as governor of the Bank of Japan in April, said ultra-low interest rates were still needed to support Japan’s fragile economy.

* “Ueda is working hard to portray itself as a continuity person,” said Sean Callow, Westpac’s senior currency strategist. “At least to start.

* Japan’s Nikkei equity index gained 1.1% and MSCI’s broader measure of Asia-Pacific stocks excluding Japan fell 0.8%, posting a sharp weekly decline of 2%.

* In particular, Chinese stocks fell 1% and Hong Kong’s Hang Seng lost 1.3% after comments from US officials that they will increase the number of troops helping to train Taiwanese forces.

* Wall Street was also pointing lower again, after ending a mixed Thursday in positive territory for the first time in five sessions, although it remains on track for its worst week of the year.

* Expectations of a US rate hike sent the dollar index, which compares the greenback to a basket of six major currencies, to 104.71, near a seven-week high of 104.78.

* Investors were watching the release later in the day of the Personal Consumer Price Index (PCE) for January, the Federal Reserve’s favorite inflation gauge.

* In bond markets, the yield on the benchmark 10-year US Treasury fell to 3.8590% from a previous close of 3.8810%.

* In the oil market, U.S. Brent and West Texas Intermediate (WTI) futures gained 0.8%.

* Spot gold rose slightly to $1,824.89 an ounce, although it is still on track for its fourth straight weekly decline.

(Edited in Spanish by Carlos Serrano)