SYDNEY (Reuters) – Asian stock markets remained flat on Thursday, while US stock futures hit another record after the Federal Reserve underlined its commitment to maintaining very weak policy, even as the economy enjoys a fast recovery.
The MSCI’s broadest index of Asia-Pacific equities outside of Japan was flat and also changed slightly over the week. The Japanese Nikkei fell by 0.3% and the Chinese by 0.1%, trading was very low.
US economic performance helped S&P 500 futures add 0.3% to a new high, while Nasdaq futures gained 0.4%. EUROSTOXX 50 futures confirmed 0.2% and FTSE futures 0.3%.
The minutes of the last political meeting of the Federal Reserve showed that members considered that the economy is still far from the goal and are in no hurry to reduce their $ 120 billion per month of bond purchases.
Fed Chairman Jerome Powell is speaking at an IMF event later on Thursday and is likely to reiterate the right outlook.
“This discussion is consistent with our view that it will be later this year before the Fed starts talking about the reduction rate, with real changes in the pace of buying that do not take place until the first quarter of 2022.” analysts at JPMorgan said.
“Fed officials generally saw the recent rise in long-term Treasury yields as reflecting an improved outlook and some strengthening inflation expectations and not a risk to the outlook.”
10-year Treasury yields fell slightly to 1.667% from 1.776% in the last 14 months, but struggled to fall below 1.59%.
The withdrawal coincided with a drop in the dollar index to 92,444, from its last five-month high to 93,439. The dollar also held at 109.78 yen after fading from its last peak of 110.96 years.
The euro was steady at $ 1.1868, reaching $ 1.1914 overnight, following a surprisingly optimistic survey of the European Union’s trade activity.
“Improved expectations of the virus and growth have boosted consumer and business confidence, increasing both domestic and global demand for manufactured goods,” Barclays analysts said in a statement.
“This phenomenon has a broad base in all European economies.”
In commodity markets, gold slowed to $ 1,736 an ounce, after meeting resistance at around $ 1,745.
Oil prices fell, but were still in a narrow trading range that has been maintained for the past two weeks. [O/R]
Brent fell 38 cents to $ 62.78 a barrel, while US oil lost 40 cents to $ 59.36 a barrel.
Additional reporting by Chibuike Oguh; Edited by Ana Nicolaci da Costa