April 7 (Reuters) – Asian shares open slowly on Wednesday after Wall Street retreated from record highs in previous sessions as investors watch the next earnings season for more signs of recovery after a series of data strong economic growth in the US.
The three major Wall Street indices closed on Tuesday, a day after the S&P 500 and Dow rose to record levels driven by optimism from a higher-than-expected job ratio last Friday and data showing a dramatic recovery in the US service industry on Monday.
Investors also weighed in on the latest U.S. job report, which showed on Tuesday that vacancies rose to a two-year high in February, while employment had the biggest gain in the last nine years. on Monday, amid rising COVID-19 vaccinations and additional government incentives.
“We’ve had a few big days in a row and I think the markets are looking to take a break here,” said Charlie Ripley, vice president of portfolio management at Allianz Investment Management in Minnesota. “From an economic point of view, we did not get much information, except for the job opening report, and market prices reflect that.”
Japanese Nikkei 225 futures fell 0.1%, while Australian S & P / ASX 200 futures rose 0.04%.
The International Monetary Fund has raised its overall growth forecast to 6% this year from 5.5%, reflecting a rapid outlook for the US economy.
Given that the next earnings season will show an increase in S&P profit of 24.2% from a year earlier, according to Refinitiv data, investors will look to see if corporate results continue to confirm recent positive economic data.
“We’re heading into earnings season and we’re going to show better how companies have evolved in the first quarter, even as we emerge from the pandemic,” Ripley said.
On Wall Street, the Dow Jones industrial average fell 0.29% to 33,430.24, the S&P 500 lost 0.10% to 4,073.94, and the Nasdaq Composite fell 0.05% to 13,698 , 38.
US Treasury yields fell, with 5-year notes leading to the decline, in the opinion of investors that market prices based on a tightening earlier than expected by the Fed were too aggressive.
The 10-year benchmarks last increased by 18/32, to 1.6578%, from 1.72% months later.
The dollar fell to a two-week low against a basket of world currencies, with traders taking advantage of its strong performance in March, while declining Treasury yields pressed the green dollar.
The dollar index fell 0.259% and the euro fell 0.05% to $ 1.1869. The Korean gain strengthened 0.08% against the green dollar to 1,118.21 per dollar.
Crude oil prices recovered in part due to losses in the previous session, driven by strong data from the United States and China.
US crude oil gained 1.16% to $ 59.33 a barrel, and Brent was $ 62.74 a barrel, up 0.95% that day.
Chibuike Oguh’s report to New York; Edited by Christopher Cushing