Shares fell along with US futures on Tuesday as investors considered a possible delay in the planned US fiscal relief package amid concerns that some markets are overloaded. The dollar moved forward.
A gauge of Asia-Pacific stocks fell the most in about two months at one point, with stocks in South Korea and China underperforming. The collapse of Tencent Holdings Ltd. Hong Kong shares fell after the internet giant’s market value nearly rose Monday for the first time $ 1 trillion. The People’s Bank of China has unexpectedly withdrawn money from the financial system as one counselor discussed the risk of asset bubbles local average.
S&P 500 futures slipped as Senate majority leader Chuck Schumer said a relief package was unlikely before mid-March and a US health official expressed concern about vaccination delays. Nasdaq 100 contracts also pointed lower, with investors waiting for income from some of the largest companies.
Elsewhere, Treasury bills held an overnight rise and crude oil surged below $ 53 a barrel. European equity futures had changed little.
Global stocks have pulled back from a record high as investors look for new catalysts to push them higher or at least justify current valuations. That could come from a series of earnings reports due out this week. Meanwhile, the possibility that a US tax relief package could be delayed is a major reason government bond yields rose earlier this year.
“If the financial markets needed further confirmation that the US fiscal stimulus was the only game in town, the herd got to buy anything overnight,” wrote Jeffrey Halley, senior market analyst at Oanda Asia Pacific. Pte., In a note. Senate Republicans’ concern about the size of the planned package “was enough to knock stocks off their intraday highs,” bond yields fell and boosted demand for the dollar, he said.
President Joe Biden said he is open to negotiations on his $ 1.9 trillion Covid-19 relief proposal and hopes to get Republicans behind it, though he hasn’t ruled out following a Democratic-only one. Schumer said earlier on Monday that he aims to reach the next round of aid by mid-March, just as the latest package’s unemployment benefits run out.
In terms of pandemics, vaccination coverage will not reach the point where transmission of the virus would stop in the near future, the World Health Organization says. US infectious disease chief Anthony Fauci said he was concerned about delaying second doses.
These are some important events in the coming week:
- Microsoft Corp., Apple inc., Tesla Inc., Facebook Inc., UBS Group AG and Samsung Electronics Co. belongs to the companies that report results.
- Data on home prices in the US and consumer confidence comes Tuesday.
- The Federal Open Market Committee’s monetary policy decision and chairman Jerome Powell’s briefing are scheduled for Wednesday.
- Fourth quarter GDP, first jobless claims and new home sales are among the data to be released in the US on Thursday.
- Personal income, expenses, and pending home sales in the US come Friday.
These are the main movements in markets:
Shares
- Futures on the S&P 500 were down 0.5% from 5:30 am in London. The S&P 500 Index rose 0.4%.
- Topix Index fell 0.5%.
- The Kospi index fell by 2%.
- Hang Seng Index fell 1.9%.
- The Shanghai Composite Index fell 1.4%.
- Futures on Euro Stoxx 50 fell 0.1%.
Currencies
- The Bloomberg Dollar Spot Index added 0.1%.
- The euro was $ 1.2130.
- The British pound fell 0.2% to $ 1,362.
- The Japanese yen changed little at 103.74 per dollar.
- The offshore yuan rose 0.1% to 6.4832 per dollar.
Bonds
- Ten-year government bond yields rose one basis point to around 1.04% after falling six basis points on Monday.
Raw materials
- West Texas Intermediate crude was down 0.7% to $ 52.40 a barrel.
- Gold rose 0.1% to $ 1,857 an ounce.
– Assisted by Vivien Lou Chen, Katherine Greifeld and Joanna Ossinger