Photographer: Kiyoshi Ota / Bloomberg
Photographer: Kiyoshi Ota / Bloomberg
Global stocks traded around record levels on Friday after a meeting in Wall Street over Federal Reserve Chairman Jerome Powell’s assurance that the central bank can revive the economy without stirring up painful inflation.
Concerns about price pressures were evident in China, where the data showed fastest factory inflation since 2018. Falling Chinese stocks weighed on a share meter in Asia and the Pacific. US equity futures rallied, outperforming Nasdaq 100 contracts, after the S&P 500 hit an all-time high amid low volumes on US stock exchanges. European equity futures fluctuated.
Powell’s confidence boosted Treasuries, with the benchmark return near a two-week low. Treasury bonds with a term of 20 years led broader earnings after comments from New York Fed Executive Vice President Lorie Logan sparked the discussion of increased central bank purchases during this maturity. The dollar suffered a loss, jeopardizing its three-week winning streak.
Oil rose to $ 60 a barrel like Saudi Arabia defended the OPEC + plan to boost output and said the alliance can change course if necessary.
The Fed’s comments reassure investors that the central bank is committed to moderate policies that promote a sustainable recovery from the health crisis. Powell said policymakers would respond if inflation expectations were to move “persistently and materially” above acceptable levels. Despite the strength of some indicators, the recovery remains incomplete, as the latest unexpectedly high US shows. unemployment claims.
“Many investors are concerned about the highs in the stock market, but that doesn’t mean they can’t get higher, and the economic conditions are certainly set for a positive stock climate,” said Xi Qiao, CEO of UBS Global. Wealth Management, on Bloomberg TV.
The outlook for the US has greatly improved, but is still at risk of potential setbacks in the global economy, as vaccine rollouts “have not been nearly as robust in many countries,” said Mary Daly, San Francisco’s Fed president. , in a Bloomberg interview.
More than 704 million shots have been taken worldwide, but uncertainty about the risks associated with the AstraZeneca vaccine has slowed the process in some countries. China is one of the countries facing new hurdles as efforts to vaccinate 560 million people by the end of June lead to a supply shortage.
These are some of the main movements in markets:
Shares
- Futures on the S&P 500 were up 0.2% from 5:00 am in London. The S&P 500 closed 0.4% higher.
- Nasdaq 100 futures are up 0.4% after the index gained 1%.
- The Topix index in Japan rose 0.6%.
- South Korea’s Kospi index lost 0.1%.
- The Australian S & P / ASX 200 index was down 0.4%.
- The Hang Seng Index in Hong Kong lost 0.7%.
- China’s Shanghai Composite Index fell 0.7%.
Currencies
- The Bloomberg Dollar Spot Index rose less than 0.1%.
- The euro fell 0.1% to $ 1,1907.
- The Japanese yen was trading at 109.29 per dollar.
Bonds
- The yield on 10-year government bonds rose by a basis point to 1.63%.
- Australia’s 10-year bond yield was stable at around 1.74%.
Raw materials
- West Texas Intermediate crude oil climbed 0.2% to $ 59.71.
- Gold was down 0.1% at about $ 1,753 an ounce.
– Assisted by Nancy Moran, Elena Popina, Edward Bolingbroke and Kathleen Hays