Stocks and Futures Rise After Fed Inflation Comments: Markets Coil
(Bloomberg) – Asian stocks and US equity futures rose on Tuesday after tech stocks sparked a rally on Wall Street amid calming comments from the Federal Reserve on inflation. Bitcoin has reduced a rebound from last week’s crisis.
An MSCI Inc. index of Asia-Pacific stocks was established for a fourth consecutive gain, with Hong Kong and China outperforming. European and US futures edged higher after the S&P 500 rallied and the Nasdaq 100 outperformed amid a jump in Apple Inc. and Tesla Inc. Bitcoin reduced a rally fueled in part by support from ‘Elon Musk in an effort to improve his green credentials.
The Fed’s comments boosted sentiment, as officials reiterated they expected transient rather than lasting price pressures from the rebounding US economy. Yields on Treasuries remained stable after falling and the dollar slipped.
Oil made an advance after Iran said loopholes remained in negotiations to reach a deal to end US sanctions on its crude. The Bloomberg Commodity Spot Index rose the most in about a week.
Fed officials Lael Brainard, Raphael Bostic and James Bullard said they would not be surprised to see bottlenecks and supply shortages push prices up in the coming months as the pandemic is declining, but that much of these gains are expected to be temporary. As market-based measures of inflation expectations have declined, investors remain cautious about the risk of a pullback in the stimulus. They are also monitoring peaks of Covid-19 in regions such as Asia.
“Inflation is a priority for investors, that is, uncertainty about what will happen to interest rates,” wrote Chris Iggo, director of core investments at AXA Investment Managers. “Yield curves have stabilized, but it is not certain that new inflation problems automatically translate into steeper curves.”
Here are some events this week:
Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday CEOs of the largest US banks including JPMorgan and Goldman Sachs , will testify before lawmakers in the Senate Banking and House Financial Services Committees on Wednesday. . US initial jobless claims, GDP, durable goods, pending Thursday home sales.
Here are some of the main movements in the markets:
Futures on S&P 500 rose 0.2% at 1:28 p.m. in Tokyo. The index added 1%. Nasdaq 100 contracts rose 0.2%. The gauge added 1.7% Japan’s Topix index climbed 0.2% Australian S & P / ASX 200 index gained 0.6% South Korea’s Kospi index climbed 0, 6% Hong Kong Hang Seng Index rose 1.3% China’s Shanghai Composite Index gained 1.6% Euro Stoxx 50 futures were little changed
The yen was at 108.74 per dollar Offshore yuan traded at 6.4065 per dollar Bloomberg Dollar Spot Index dipped 0.1% Euro was at $ 1.2228
The yield on 10-year Treasuries was 1.60% The yield on Australian 10-year bonds was stable at 1.70%
West Texas Intermediate crude rose 0.4% to $ 66.32 per barrel, gold fell 0.1% to $ 1,878.92 per ounce
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