US futures rose in Asian equities amid expectations that President-elect Joe Biden has a clearer path to boosting the fiscal stimulus after the key election. Treasuries recorded losses due to concerns about rising debt burdens and the risk of faster inflation.
An Asia-Pacific stock gauge was on track for another record on Thursday, while the S&P 500 and Nasdaq 100 futures also advanced. The victory of the Democrats’ victory in two key rounds in Georgia gives them control of the US Senate and has resumed the so-called inflation trade betting on a global recovery after the pandemic.
Earlier, the S&P 500 reduced its lead by up to 1.5%, but was closed in the green after protesters stormed the US chapter. Calm was restored later. Elsewhere, the dollar ticked above. Oil rose and gold was little changed.
Hong Kong missed the rally in Asia, hit by declines in Alibaba Group Holding Ltd. and Tencent Holdings Ltd. after reports that the Trump administration could ban investment in China’s two most valuable companies. The New York Stock Exchange’s plan to eliminate three major Chinese telecommunications companies also affected sentiment.
Investors have focused on the political implications of Democrats gaining control of the US Senate, while lawmakers have resumed the process of politically ratifying Biden’s victory in the presidential election. A few hours earlier, a pro-Trump mob stormed the US Chapter and drove lawmakers from their chambers.
Asian stock markets seemed to be overcoming the turmoil and chose to “focus on the prospects of a greater stimulus resulting from the Georgia outcome,” said Shane Oliver, chief investment officer and chief economist at AMP Capital.
In the final minutes published on Wednesday, the Federal Open Market Committee issued guidance on continuing bond purchases at least at the current pace until the economic recovery has made “substantial progress”.
Meanwhile, shares of Twitter Inc. they gave up trading hours after the platform suspended President Donald Trump’s account for provoking a violent mob that stormed the Capitol building.
These are some of the main movements in the markets:
Inventories
- The S&P 500 futures rose 0.7% since 06:50 in London. The S&P 500 gained 0.6%.
- The Japanese Topix index rose 1.7%.
- The Australian S & P / ASX 200 index rose 1.6%.
- The Kospi index in South Korea rose 2.1%.
- Hong Kong’s Hang Seng Index fell 0.5%.
- The Shanghai Composite Index added 0.2%.
- Euro Stoxx 50 futures rose 0.3%.
currencies
- The yen was at 103.21 per dollar, down 0.2%.
- The offshore yuan traded at $ 6.4393.
- The Bloomberg Dollar Spot index rose below 0.1%.
- The euro was $ 1.2322.
BONDS
- The 10-year Treasury yield rose one basis point to 1.05% after rising eight basis points.
- Australia’s 10-year bond yield rose two basis points to 1.09%.
commodities
- West Texas Intermediate Oil rose 0.9% to $ 51.09 a barrel.
- Gold rose 0.3 percent to $ 1,925.27 an ounce.
– With the assistance of Rita Nazareth, Vildana Hajric and Joanna Ossinger