Asian stocks were steady on Thursday, and US equity futures won after the S&P 500 set another record in terms of additional evidence of the Federal Reserve’s commitment to the support policy.
Japanese stocks have fallen amid concerns that Tokyo is planning stricter steps to reduce growing virus infections, while Australia and Hong Kong outperformed. US and European futures rose as a result of modest gains in the S&P 500 as the US stock market declined. Technology giants, including Apple Inc., contributed to the rise of the Nasdaq 100. The dollar went into a fifth decline in six sessions, while the Treasury stabilized.
The pound lost two days of losses after coming under pressure due to concerns about the AstraZeneca Plc vaccine, on which the UK is heavily dependent. Growing concerns that the shooting is causing rare blood clots could hamper immunization campaigns in other parts of the world.
Fed officials were united on the need to see more progress on the recovery before reducing their massive bond-buying program, according to the minutes of last month’s meeting published on Wednesday. Political decision-makers have minimized inflation risks, maintaining that the recent increase in Treasury yields reflects stronger growth prospects. Traders have reduced their most aggressive stance so that interest rates will start to rise by the end of next year.
The turmoil is expected to return to the market in the second quarter, Banny Lam, head of research at CEB International Investment Corp, told Bloomberg TV. In addition to the emphasis on inflationary pressures, “we should focus more on renewed growth.”
Meanwhile, Treasury Secretary Janet Yellen revealed details of a plan to bring back about $ 2 trillion in corporate profits to the US tax network. This would help fund government spending initiatives, potentially reducing reliance on more loans that could increase rates.
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Some key events to watch this week:
- The 2021 spring meetings of the IMF and the World Bank Group are practically taking place. Federal Reserve Chairman Jerome Powell is attending a panel on the global economy on Thursday.
- Japan launches its balance of payments numbers on Thursday.
- Data on China’s consumer and producer prices are on Friday.
These are some of the main movements in the markets:
Inventories
- The S&P 500 futures rose 0.4% from 1:40 p.m. in Tokyo. The S&P 500 gained 0.2%.
- Japan’s Topix index fell 0.9%.
- The Kospi index in South Korea fell 0.1%.
- The Australian S & P / ASX 200 index rose 0.9%.
- Hong Kong’s Hang Seng Index rose 0.8%.
- China’s Shanghai Composite Index rose 0.2%.
- Euro Stoxx 50 futures rose 0.3%.
currencies
- The yen rose 0.2% to 109.65 per dollar.
- The offshore yuan was $ 6.5527.
- The Bloomberg Dollar Spot index fell 0.1%.
- The euro was slightly lower at $ 1.1870.
BONDS
- The yield on the 10-year Treasury decreased by 1.66%.
- Australia’s 10-year bond yield fell one basis point to 1.74%.
commodities
- West Texas Intermediate Oil fell 0.4% to $ 59.53 a barrel.
- Gold was $ 1,739.61 an ounce.
– With the assistance of Rita Nazareth, Claire Ballentine and Joanna Ossinger