Photographer: Noriko Hayashi / Bloomberg
Photographer: Noriko Hayashi / Bloomberg
Shares in Asia traded mixed on Tuesday, after US stocks fell for the first time in five sessions, with prices close to all-time highs. The dollar expanded its growth as Treasury yields hit their highest level since March.
Shares were steady in Japan, but fell in South Korea after a strong rally this year. The S&P 500 and the European future have changed little. Shares and currency in Malaysia fell after declaring a state of emergency to help combat the jump in coronavirus cases. Bitcoin stabilized after falling to 20% in months. Gold stopped the loss, and West Texas Intermediate oil held nearly $ 52 a barrel.
With 10-year Treasury yields at around 1.15%, investors are assessing the potential risks to the current environment of light financial conditions and how they could reset expectations for a range of asset classes. Yields have risen on bets that Democratic lawmakers will adopt large spending packages to bring the economic recovery out of the pandemic.
Concerns that stocks are getting too hot when most of the world is facing the worst Covid-19 outbreak are also weighing on investors’ minds.
“A new, more speculative, more volatile phase of the bull market has begun,” said Julian Emanuel, chief strategist of equities and derivatives at BTIG LLC. “The depth of such withdrawals in 2021 depends largely on yields.”
Twitter Inc. fell permanently after the socializing platform banned President Donald Trump after a crowd invaded the Capitol building last week. Shares of Facebook Inc., which suspended Trump’s account, also declined.
The House of Commons on Monday introduced a resolution accusing Trump for the second time, holding a vote this week, unless Vice President Mike Pence uses his constitutional authority to remove the president.
Savita Subramanian, head of quantitative strategy and equities at US Bank of America, talks about how a democratically controlled Washington could impact markets and stocks.
Here are some key events that occur:
These are some of the main movements in the markets:
Inventories
- The S&P 500 futures have changed slightly since 2:14 p.m. in Tokyo. The S&P 500 index fell 0.7%.
- Japan Topix added 0.1%.
- Australia’s S & P / ASX 200 fell 0.3%.
- Hong Kong’s Hang Seng added 0.4%.
- Shanghai Composite rose 0.8%.
- Kospi in South Korea fell 2.4%.
currencies
- The Bloomberg Dollar Spot index rose 0.1%.
- The yen was slightly lower at 104.31 per dollar.
- The euro fell 0.1% to $ 1.2142.
- The pound was slightly lower at $ 1.3524.
- The offshore yuan was 0.1% higher at $ 6.47 billion.
BONDS
- The yield on the 10-year Treasury was 1.15%.
commodities
- West Texas Intermediate Oil fell 0.2% to $ 52.17 a barrel.
- Gold rose 0.4 percent to $ 1,851 an ounce.
– With the assistance of Vildana Hajric