Asian stocks remained stable on Wednesday as investors assessed the economic recovery and the risk of a change in Federal Reserve policy projections. Treasury yields remained near record highs for more than a year.
Japanese stocks changed little and China’s CSI 300 varied between gains and losses. Shares in South Korea were withdrawn as Samsung Electronics Co. warned that it is facing the consequences of a “serious imbalance” of semiconductors worldwide. European and American equities futures fluctuated. The S&P 500 overnight hit a record high and the Nasdaq 100, which had a lot of technology, saw a modest increase.
The 10-year Treasury yield remained around 1.62% towards the second day of the Fed meeting, after a 20-year bond the auction attracted strong demand. The inflation expectations involved in the market are maximum in twelve years. The dollar was stronger against major pairs.
The policy updates and the Fed’s prospects to be unveiled on Wednesday are the central stage as the global recovery gains strength. Type markets are positioned for the central bank to raise borrowing costs earlier than the current guide suggests. Higher inflation expectations have boosted bond yields and led to a rotation of growth in value stocks. Bond investor Bill Gross predicted in an interview on Bloomberg TV that inflation will rise from 3% to 4% in the coming months.
“The concern is the assets that have worked best over the last decade (rates, loans of all kinds and long-term equities) may no longer be the only games in the city,” said David Wong, investment strategist of AllianceBernstein.
Elsewhere, oil was skirted Until trade around $ 65 a barrel. Bitcoin remained around $ 56,000, below the weekend record above $ 61,000.
SEE: Favorable macroeconomic conditions will continue to benefit value stocks, according to Allianz Global Investors.
Here are some key events from this week:
- Fed Chairman Jerome Powell is likely to reaffirm his steady political stance at the Fed’s policy meeting on Wednesday.
- Bank of England rate decision on Thursday BOE is expected to leave monetary policy unchanged.
- On Friday, the decision on monetary policy of the Bank of Japan and Governor Haruhiko Kuroda.
Stocks
- The S&P 500 futures added 0.1% at 6:20 a.m. in London. The S&P 500 index fell 0.2%.
- Japan’s Topix index rose 0.1%.
- The Australian S & P / ASX 200 index fell 0.5%.
- The Kospi index in South Korea fell 0.5%.
- Hong Kong’s Hang Seng index changed little.
- China’s Shanghai composite index fell 0.1%.
Coins
- The yen fell 0.1% to 109.12 per dollar.
- The offshore yuan was trading at $ 6,5011.
- The Spot Bloomberg Dollar index rose 0.1%.
- The euro remained stable at $ 1.1905.
Good
- The 10-year Treasury yield stood at 1.62%.
- Australia’s ten-year bond yield rose three basis points to 1.72%.
Commodities
- West Texas crude oil was at $ 65.30 a barrel.
- Gold rose 0.3% to $ 1,736.67 an ounce.
– With the assistance of Haslinda Amin