April 7 (Reuters) – Asian stocks will 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 strong American economic data.
Wall Street’s top three indexes closed lower on Tuesday, a day after the S&P 500 and Dow rose to record levels driven by optimism from a higher-than-expected earnings report last Friday. data showing a dramatic rebound in the U.S. service industry Monday.
Investors also weighed in on the latest job vacancy report in the U.S., which showed on Tuesday that vacancies rose to a two-year high in February, while hiring had its biggest profit in nine months amid of an increase in COVID-19 vaccinations and an additional government stimulus.
“We’ve had a few consecutive days and I think the markets are looking for some pause here,” said Charlie Ripley, vice president of portfolio management at Allianz Investment Management in Minnesota. “From an economic data perspective, we didn’t get too 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 raised its global growth forecast to 6% this year from 5.5%, reflecting a rapid and bright outlook for the US economy.
According to data from Refinitiv, with the next profit season there will be a growth in S&P profits of 24.2% over the previous year, investors will see if the results of the companies further confirm the recent positive economic data .
“We’re heading into the earnings season and we’re going to see better business performance 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.
U.S. Treasury yields fell, with five-year notes leading the decline, according to investors’ opinions that market prices based on a previous tightening of what the Fed expected were too aggressive.
Banknotes to 10-year benchmark rose 18/32 in price to produce 1.6578%, up from 1.72% Monday afternoon.
The dollar fell to a two-week low against a basket of world currencies, and traders took advantage of its strong March performance as falling Treasury yields pressed the green dollar.
The dollar index fell 0.259%, with the euro 0.05% to $ 1.1869. Korean earnings strengthened 0.08% against the greenback, with $ 1,118.21.
Crude oil prices partially bounced back from losses in the previous session, lifted by strong data from the United States and China.
US crude gained 1.16% to $ 59.33 per barrel, and Brent settled at $ 62.74 per barrel, up 0.95% on the day.
Report by Chibuike Oguh in New York; Edited by Christopher Cushing