news/AMZN/2023.01.30/Stocks fall, U.S. yields climb with central banks on tap.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
retreated on Monday after six sessions of gains while U.S.
Treasury yields rose 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."It would be pretty shocking for them to come out and do
anything other than 25 on Wednesday just because it has been
priced in there and they haven’t taken the opportunity to push
back on it," said Scott Ladner, chief investment officer at
Horizon Investments in Charlotte, North Carolina."It’s not necessarily in the Fed’s best interest to forecast
a pause or pivot at this stage – they still have an inflation
number that is too high, they still have an employment situation
they believe is too tight."The Dow Jones Industrial Average fell 189.88 points,
or 0.56%, to 33,788.2, the S&P 500 lost 43.59 points, or
1.07%, to 4,026.97 and the Nasdaq Composite dropped
193.19 points, or 1.66%, to 11,428.52.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 continues to roll
on, 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 closed lower, with rate-sensitive names
such as technology shares among the primary decliners after
inflation data from Spain came in above expectations while other
data showed the German economy unexpectedly contracted in the
fourth quarter.The pan-European STOXX 600 index lost 0.17% and
MSCI's gauge of stocks across the globe shed
0.85%. 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
2.6 basis points to 3.544%, 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 for a third straight
session against a basket of major currencies.The dollar index rose 0.402%, with the euro
down 0.25% to $1.084.The Japanese yen weakened 0.51% versus the greenback to
130.51 per dollar, while Sterling was last trading at
$1.2338, down 0.48% on the day.Crude prices fell ahead of the expected hikes by central
banks and signals of strong Russian exports.U.S. crude fell 2.16% to $77.96 per barrel and Brent
was at $84.86, down 2.08% on the day.(Reporting by Chuck Mikolajczak
Editing by Bernadette Baum)