Asian stocks were steady Thursday and U.S. equities futures won after the S&P 500 set another record in evidence further than the Federal Reserve’s commitment to a supportive policy.
Japanese stocks fell amid concerns planned by Tokyo stricter steps to curb the rise in virus infections, while Australia and Hong Kong outperformed the results. US and European equities futures rose after modest gains in the S&P 500 amid declining US stock volume. Technology giants, including Apple Inc., helped propel the Nasdaq 100. The dollar headed for its fifth drop in six sessions, while Treasury stabilized.
The British pound fell two days after being pressured by concerns over the AstraZeneca Plc vaccine, on which the UK is heavily dependent. Growing concern that the shooting will cause rare blood clots could hamper vaccination campaigns elsewhere in the world.
Fed officials they were united by the need to see further progress in the recovery before downsizing their massive bond-buying program, according to minutes of last month’s meeting released Wednesday. Policymakers have minimized inflation risks, maintaining that the recent rise in Treasury yields reflects stronger growth prospects. Traders have reduced their more aggressive positioning so that interest rates start to rise by the end of next year.
The turmoil is expected to return to the market during the second quarter, Banny Lam, head of research at CEB International Investment Corp., told Bloomberg TV. Along with the focus on inflationary pressures, “we should focus more on the issue of renewed economic growth.”
Meanwhile, Treasury Secretary Janet Yellen unveiled details of a plan to recoup about $ 2 trillion in corporate profits in the U.S. tax network. This would help fund government spending initiatives, potentially reducing reliance on more loans that could raise rates.
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Some key events to watch this week:
- The spring 2021 meetings of the IMF and the World Bank Group are practically taking place. Federal Reserve Chairman Jerome Powell participates Thursday in a group on the world economy.
- Japan released its balance of payments numbers on Thursday.
- Consumer and producer price data for China are due to be released on Friday.
These are some of the main movements in the markets:
Stocks
- Futures S&P 500 rose 0.4% from 13:40 in Tokyo. The S&P 500 gained 0.2%.
- Japan’s Topix index fell 0.9%.
- The Kospi index in South Korea fell 0.1%.
- The Australian S & P / ASX 200 index rose 0.9%.
- Hong Kong’s Hang Seng index rose 0.8%.
- China’s Shanghai composite index rose 0.2%.
- Euro Stoxx 50 futures rose 0.3%.
Coins
- The yen rose 0.2% to $ 109.65 per dollar.
- The offshore yuan was $ 6,5527 per dollar.
- The Bloomberg Dollar Spot Index fell 0.1%.
- The euro changed little, to $ 1.1870.
Good
- The ten-year Treasury yield fell 1.66%.
- Australia’s ten-year bond yield fell one basis point to 1.74%.
Commodities
- West Texas crude oil fell 0.4% to $ 59.53 a barrel.
- Gold was $ 1,739.61 an ounce.
– With the assistance of Rita Nazareth, Claire Ballentine and Joanna Ossinger