The dollar rose on Monday and Asian equities were mixed as traders weighed the implications of rising US Treasury yields amid pressure from President-elect Joe Biden for huge tax aid to combat the impact of the pandemic.
The dollar rose on the third day against its most important colleagues, and the future of the Treasury was flat. The Japanese capital market is closed for the holidays, and the cash treasury will not trade until the opening of London. An indicator of Asian stocks fluctuated as South Korea fell after a previous increase of up to 3.6%. The S&P 500 futures fell.
US stocks hit record high after Biden said it would make proposals this week billions of dollars in tax support to combat the economic tax of growing virus cases. The oil reduced part of last week’s jump, and gold fell further.
The equity rally broke out earlier in the week, as investors assessed broad valuations and some signs that global equities might be performing too well. Treasury stocks and yields have risen in anticipation of a global stimulus recovery and possible control of the pandemic with vaccines. Higher yields could increase demand for the dollar.
“After being winners for a few months, we are certainly becoming more cautious in the stock market at these levels,” wrote Matt Maley, chief market strategist at Miller Tabak + Co., in a note. He added that “the dollar is so extreme oversold, over-ugly and overworked that everything has to come together for a while at some point soon. “
Read: The Jackpot Bells keep ringing
The Democratic Party, led by Biden, will control both chambers of Congress once it takes over, but getting the agreement for ambitious spending – such as $ 2,000 stimulus checks – could be another challenge in a split Senate. 50-50 with the Republicans. Meanwhile, President Donald Trump is entering the final days of his presidency in the face of a possible indictment resolution, after he was accused of inciting last week’s deadly riot in the US Chapter.
Biden’s imminent political tasks after next week’s inauguration include managing escalating tensions with Beijing. The Chinese state media has called for retaliation after the Trump administration said the United States would do so remove self-imposed borders on diplomatic interactions with Taiwan. China claims the island as territory.
Regarding the virus, Japan said it found a new strain of coronavirus with similarities to variants in the UK and South Africa. The Asian nation said it was difficult to determine immediately how infectious the strain or the effectiveness of current vaccines against it was.
Elsewhere, Bitcoin retreated from Friday’s high of about $ 42,000.
Here are some key events that occur:
These are some of the main movements in the markets:
Inventories
- The S&P 500 futures fell 0.7% from 1:50 pm in Tokyo. The S&P 500 index rose 0.6% on Friday.
- The Australian S & P / ASX 200 index fell 0.8%.
- The Kospi index in South Korea fell 0.8%.
- The Shanghai Composite Index fell 0.2%.
- Hong Kong’s Hang Seng Index rose 0.9%.
currencies
- The Bloomberg Dollar Spot index rose 0.5%.
- The yen fell 0.2% to $ 104.19.
- The euro was down 0.4% at 1.2170 USD.
- The pound lost 0.5% to $ 1.3499.
- The offshore yuan fell 0.4% to $ 6.47873.
BONDS
- The 10-year Treasury yield rose four basis points to 1.12% on Friday.
commodities
- West Texas Intermediate Oil fell 0.9% to $ 51.78 a barrel.
- Gold fell 0.9% to $ 1,831.86 an ounce.
– With the assistance of Joanna Ossinger