SYDNEY (Reuters) – Asian stock markets lagged on Thursday as US stock futures hit another high after the Federal Reserve stressed its commitment to keeping policy very loose despite economy enjoys a rapid recovery.
MSCI’s broader Asia-Pacific stock index outside of Japan was flat and also changed little during the week. The Japanese Nikkei relaxed 0.3% and the Chinese blue chips 0.1%, with very moderate trading.
Overcoming the US economy helped the S&P 500 futures add 0.3% to a new peak, while the Nasdaq futures gained 0.4%. EUROSTOXX 50 futures confirmed 0.2% and FTSE futures 0.3%.
The minutes of the last Federal Reserve political meeting showed that members felt the economy was still far from the target and in no hurry to cut their $ 120 billion a month in bond purchases.
Fed Chairman Jerome Powell speaks at an IMF event later Thursday and is likely to reiterate the black outlook.
“This discussion is consistent with our view that it will be later this year before the Fed starts talking about volume reduction, with real changes in the pace of buying that will not occur until the first quarter of 2022,” they said. JPMorgan analysts.
“Fed officials generally felt that the recent rise in long-term Treasury yields reflects an improved outlook and some consolidation of inflation expectations, not a risk to the outlook.”
Ten-year Treasury yields have fallen slightly to 1.677%, from 1.776% in the last 14 months, but have struggled to exceed 1.59%.
The decline coincided with a rise in the dollar index to 92,444, from its recent five-month high of 93,439. Also, the dollar remained at 109.78 yen, after fading from its one-year high of 110.96.
The euro remained stable at $ 1.1868, after reaching $ 1.1914 overnight following a surprisingly optimistic survey of business activity in the European Union.
“Improving virus and growth expectations has spurred consumer and business confidence, increasing domestic and global demand for manufactured goods,” Barclays analysts said in a note.
“This phenomenon has a broad base in European economies.”
In commodity markets, gold was slowing to $ 1,736 an ounce after meeting resistance at around $ 1,745.
Oil prices fell, but remained in a narrow trading range that has been maintained for the past two weeks or so. [O/R]
Brent fell 38 cents to $ 62.78 a barrel, while U.S. crude lost 40 cents to $ 59.36 a barrel.
Additional reports from Chibuike Oguh; Edition by Ana Nicolaci da Costa