Asian stocks mixed on Tuesday as traders assessed a strengthening of the US economic recovery, the possibility of raising taxes and restrictions in Europe to curb the coronavirus. Oil recovered some losses.
Equity stocks fell in Japan and China, but outperformed Australia. US equities futures fluctuated as investors assessed the pandemic rebound and any persistent impact of the Archegos Capital Management outbreak. Earlier, the S&P 500 reached an all-time high with most of its major groups advancing. Shares of Internet and Megacap technology in the United States increased, including the rise of Facebook Inc. up to a new peak as the Nasdaq 100 jumped 2%.
Treasury yields fell. Oil rose above $ 59 a barrel after slipping amid growing delays in the reopening of Europe and the emergence of Iranian supply. Credit Suisse Group AG began unloading shares linked to Archegos Capital’s turmoil for a week after some rivals abandoned their shares and bordered on losses.
U.S. data continued to show an economic uptake as more Americans are vaccinated against coronavirus, restrictions are tightened, and tax relief is taken advantage of. U.S. service providers recorded the fastest growth in March, as orders jumped to highs. A report last week showed employers in the world’s largest economy added more jobs in seven months.
At the same time, investors are weighing the impact of the increase proposed by the Biden administration to the corporate tax rate to help fund its spending plan.
“The reopening trade is back with good reason,” Kim Forrest, founder and investment director of Bokeh Capital Partners, told Bloomberg TV. “I think part of that bounce could be taken off the table because of taxes in America? Maybe almost at the end of that momentum, certainly not at the beginning, that I think we’re here.”
A sentence this opens the door to the passage of several additional bills this year without any Republican support can bolster the prospects of President Joe Biden’s economic agenda.
Treasury Secretary Janet Yellen reiterated his view that the $ 1.9 trillion U.S. pandemic bill signed last month will not provoke inflationary pressures and suggested that low interest rates will continue to prevail in the coming years. She too he set out the case of a type of corporate tax harmonized in the world’s major economies in his first major speech on international economic policy.
Traders maintain the limits of eye viruses across Europe as the region continues to face growing infections that threaten to delay its economic reopening. Hong Kong markets are closed for holidays.
Some key events to watch this week:
- The 2021 spring meetings of the International Monetary Fund and the World Bank Group are practically taking place. U.S. Treasury Secretary Janet Yellen is one of the participants in a climate discussion on Tuesday. Federal Reserve Chairman Jerome Powell participates Thursday in a group on the world economy.
- The Fed publishes minutes of the March meeting on Wednesday.
- Japan released its balance of payments numbers on Thursday.
- Consumer and producer price data for China will be presented on Friday.
These are some of the main movements in the markets:
Stocks
- The S&P 500 futures fell 0.1% at 10:55 a.m. in Tokyo. The S&P 500 rose 1.4%. The futures of the Nasdaq 100 were flat.
- Japan’s Topix index fell 0.6%.
- The Australian S & P / ASX 200 index rose 1%.
- The Kospi index in South Korea fell 0.2%.
- China’s Shanghai composite index lost 0.2%.
Coins
- The yen was trading at 110.23 per dollar.
- The offshore yuan was $ 6.5624 per dollar.
- The Bloomberg Dollar Spot Index fluctuated shortly after declining 0.3%.
- The euro was $ 1.1810.
Good
- The 10-year Treasury yield fell two basis points to 1.68%.
- Australia’s ten-year bond yield fell five basis points to 1.79%.
Commodities
- West Texas Crude Oil rose 1.2% to $ 59.37 a barrel. It fell 4.6% in the previous session.
- Gold added 0.3% to $ 1,733.11 an ounce.
– With the assistance of Michael Tobin, Claire Ballentine and Rita Nazareth