Police check drivers at a checkpoint near Auckland, New Zealand, on 15 February.
Photographer: Fiona Goodall / Getty Images
Photographer: Fiona Goodall / Getty Images
Actions began the week on the front foot, amid signs that the reflation trade has yet to work and as the pace of coronavirus outbreaks slowed further. WTI crude breached $ 60 a barrel as Arctic freezing seized U.S. parts
Shares in South Korea outperformed and shares in Japan were higher, with the Nikkei 225 reaching 30,000 for the first time since 1990. S&P 500 futures rose. The data showed that the Japanese economy grew double-digit last quarter, exceeding expectations. The yen sank. U.S. markets are closed for Presidents Day, while changes in China, Hong Kong and Taiwan are also closed on Monday.
Australian bonds fell after U.S. yields jumped on Friday. Treasury futures fell in Asian trading. The kiwi fluctuated when New Zealand closed Auckland while investigating new cases of Covid-19. The dollar was little changed. Bitcoin approached $ 50,000.
The reflation trade stays alive and well: global stocks have risen for ten straight sessions and the Treasury yield curve tested the strongest levels in more than five years. Investors are betting on U.S. government spending and the deployment of the coronavirus vaccine to boost economic recovery, although new variants threaten to dampen the outlook.
“The reflation trade will continue to gain momentum with vaccine deployment and massive tax spending by the Biden administration,” said Esty Dwek, head of global market strategy at Natixis Investment Managers Solutions. “Yields are likely to rise further and the recovery in cyclical sectors should continue.”
Countries lowering restrictions include Malaysia, which will allow national football and hockey leagues to start training. Hong Kong will allow you to eat at the restaurant and relax other rules of social distancing after the lunar New Year holidays. New U.S. cases fell to their lowest weekly average since late October.
Japan’s gross domestic product grew 12.7% year-on-year from the previous quarter in the three months to December, the Cabinet Office reported Monday. Economists had forecast an expansion of 10.1%. Singapore reaffirmed its forecast for rise in economic growth this year.
Here are some key events:
- The profits are developed with companies such as BHP Group, Daimler, Credit Suisse, Deere, Danone and Nestle.
- Euro area finance ministers will discuss the current situation and economic outlook for the bloc on Tuesday.
- Retail sales in the U.S. on Wednesday are likely to show an increase for the first time since September.
Saed Abukarsh, chief executive of Ark Capital, discusses WHO reports on reinfection for Covid-19 and what it could mean for economic recovery projections.
These are the main movements in the markets:
Stocks
- The S&P 500 futures rose 0.3% at 10:02 a.m. in Tokyo. The S&P 500 rose 0.5% on Friday.
- The Topix index rose 0.7%. The Nikkei 225 rose 1.1%.
- The Kospi index rose 1.4%.
- The Australian S & P / ASX 200 index gained 0.8%.
Coins
- The yen fell 0.1% to $ 105.07.
- The euro bought $ 1.2122, little changed.
Good
- Australia’s ten-year yield rose six basis points to 1.28%.
- The 10-year Treasury yield gained five basis points to 1.21% on Friday.
Commodities
- West Texas Crude Oil rose 1.9% to $ 60.58 a barrel.
- Gold fell 0.1% to $ 1,823.04 an ounce.
– With the assistance of Andres Guerra Luz, Michael Roschnotti and Michael Hirtzer