Photographer: Qilai Shen / Bloomberg
Photographer: Qilai Shen / Bloomberg
Global stocks remained around record levels on Friday after surprisingly strong U.S. economic data sent U.S. equities indexes to all-time highs. Yields on 10-year Treasury notes maintained a decline.
The Asia-Pacific indicator of MSCI Inc. increased, but more modestly than the Wall Street rally. China outperformed, after data showed the country’s economy soared during the first quarter as consumer spending strengthened, suggesting a more balanced recovery.
European equities rose and US futures fell after the S&P 500 and Nasdaq 100 hit all-time highs strong retail sales and claims figures. Finances weakened amid falling bond yields, even after Citigroup Inc. and Bank of America Corp. exceed commercial revenue forecasts.
Merchants suggested buying abroad and geopolitical risks may have contributed to the rise in treasuries, with many trapped investors positioned for a new weakness. The US dollar stopped a series of falls.
Shares have peaked amid rising global growth, confidence in continued central bank policy support and some optimistic business gains. However, the recovery of government bonds highlights persistent risks, with some countries facing spikes in Covid-19 infections and setbacks in vaccine deployment.
The rise in the bond market is “one of the most confusing dynamics in the markets” right now, said Michael Arone, investment strategist at State Street Global Advisors. “Part of that is that you saw the ten-year-olds move very fast in a very short period of time, so that could be a pause before you start climbing again.”
Figures from China showed that gross domestic product rose by a record 18.3% in the first quarter over the previous year, but this quarter-on-quarter growth slowed to 0.6%. Retail sales exceeded expectations while industrial production moderated.
Elsewhere, oil headed for the biggest weekly gain since early February, with optimism about the pandemic recovery. Copper is up and running during the best week of about two months.
Wang Tao, head of Asian economics and chief economist at China at UBS Group AG, analyzes the state of the world’s second largest economy, its prospects and policies.
Markets: Asia “(Source: Bloomberg)
These are some of the main movements in the financial markets:
Stocks
- Futures S&P 500 fell 0.1% at 6:58 a.m. in London. The index rose 1.1%.
- Japan’s Topix index added 0.1%.
- The Shanghai composite index rose 0.9%.
- The Hang Seng index rose slightly by 0.8%.
- The Kospi index in South Korea rose 0.1%.
- The Australian S & P / ASX 200 index fell 0.1%.
- Euro Stoxx 50 futures added 0.2%.
Coins
- Bloomberg’s Spot Dollar Index changed little.
- The euro was $ 1.1970.
- The Japanese yen was at 108.81 per dollar.
- The offshore yuan changed little, with 6.5282 per dollar.
Good
- The 10-year Treasury yield remained at 1.58%.
- Australia’s ten-year yield was four basis points lower, at 1.73%.
Commodities
- West Texas crude oil added 0.5% to $ 63.80 a barrel.
- Gold was trading at about $ 1,765 an ounce.
– With the assistance of Claire Ballentine and Katherine Greifeld