Asian stocks were stable on Thursday and US equity futures gained after the S&P 500 set another record based on further evidence of the Federal Reserve’s commitment to supportive policies.
Japanese stocks slipped on concerns that Tokyo has plans tougher measures to combat growing viral infections, while Australia and Hong Kong fared better. US and European equity futures climbed after modest gains in the S&P 500 Index with declining volume on US stock exchanges. Tech giants, including Apple Inc., helped push the Nasdaq 100 up. The dollar was on its way to its fifth decline in six sessions, while Treasuries stabilized.
The British pound broke two days after it came under pressure over concerns over the vaccine from AstraZeneca Plc, on which the UK is heavily dependent. The growing concern that the shot causes rare blood clots may hinder immunization campaigns elsewhere in the world as well.
Fed officials were unanimous on the need to see more progress in the recovery before scaling back their massive bond-buying program, according to minutes of last month’s meeting published Wednesday. Policymakers have downplayed inflation risks, claiming that the recent rise in government bond yields reflects stronger growth prospects. Traders have scaled back their most aggressive positioning to see interest rates rise towards the end of next year.
Turbulence should return to the market in the second quarter, Banny Lam, chief of research at CEB International Investment Corp., told Bloomberg TV. In addition to the focus on inflationary pressures, “we should pay more attention to the theme of renewed economic growth.”
Meanwhile, Finance Minister Janet Yellen disclosed details of a plan to return approximately $ 2 trillion in corporate profits to the US tax network. That would help fund the government’s spending initiatives, potentially reducing dependence on more loans, which could drive up rates.
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Some important events to watch this week:
- The spring meetings of the IMF and the World Bank Group in 2021 will take place virtually. Jerome Powell, chairman of the Federal Reserve, will participate in a panel on the global economy on Thursday.
- Japan will announce its balance of payments figures on Thursday.
- Chinese consumer and producer prices are expected on Friday.
These are some of the main movements in markets:
Shares
- Futures on the S&P 500 were up 0.4% from 1:40 PM in Tokyo. The S&P 500 gained 0.2%.
- The Topix index in Japan fell 0.9%.
- South Korea’s Kospi index fell 0.1%.
- The Australian S & P / ASX 200 index rose 0.9%.
- The Hang Seng index in Hong Kong climbed 0.8%.
- China’s Shanghai Composite Index rose 0.2%.
- Futures on Euro Stoxx 50 rose 0.3%.
Currencies
- 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 had changed little at $ 1.1870.
Bonds
- The yield on 10-year Treasury bonds fell 1.66%.
- Australia’s 10-year bond yield fell one basis point to 1.74%.
Raw materials
- West Texas Intermediate crude oil fell 0.4% to $ 59.53 a barrel.
- Gold was $ 1,739.61 an ounce.
– With the help of Rita Nazareth, Claire Ballentine and Joanna Ossinger