Asian stocks were mixed on Thursday as investors weighed the impact of high energy costs on inflation and weak data from China. The dollar cut an advance.
Japanese stocks fell as investors saw the new leader of the ruling party, set to become the next prime minister, maintaining stability. China was ahead of a week-long holiday, while Hong Kong fell. American and European futures rose. The Nasdaq 100 posted its third straight day of losses after a technology rally petered out. Dip buyers helped propel the S&P 500 higher.
Treasury yields were around their highest since June. Federal Reserve Chairman Jerome Powell and his counterparts in Japan, Europe and the UK expressed cautious optimism that supply chain disruptions driving inflation rates around the world would eventually prove temporary.
China’s manufacturing activity contracted in September for the first time since the pandemic began last year, a sign of the damage a widespread electricity crisis is taking in an already slowing economy.
Investors are ending the third quarter worried about global growth amid inflationary pressures, a looming energy crisis, supply chain bottlenecks and regulatory risks emanating from China. Most harbor fears of persistently high inflation, with a 20% decline in stocks seen as more likely than a 20% rally, according to a survey of Citigroup Inc. customers. first quarter of six.
“Growth has clearly skyrocketed here with concerns about Covid, with the drama going on in Washington right now, the Chinese real estate sector that has sent tremors to global markets,” said Christopher Smart, Barings chief global strategist, on Bloomberg Television. “Having said that, the overall trajectory of the global economy remains very where it was at the beginning of this year.”
Meanwhile, the Chinese authorities appeared to remain committed to stabilizing the rapidly cooling housing market, another sign that they want to avoid the fallout from the debt crisis at China Evergrande Group. Separately, two holders of an Evergrande dollar bond with a coupon due Wednesday said they had not received payment.
In the United States, Senate Majority Leader Chuck Schumer said Wednesday that lawmakers had reached an agreement to avoid a government shutdown on Friday, extending public spending until December 3.
Elsewhere, oil turned shortly after declining and Bitcoin jumped above $ 43,000.
Here are some events to watch this week:
- House Financial Services Committee hearing on the Fed, the Treasury’s response to the pandemic, Thursday
- Michigan Sentiment Univ., ISM Manufacturing, US Construction Spending, Personal Income / Spending, Friday
Some of the main movements in the markets:
- S&P 500 futures were up 0.6% at 7am in London. The S&P 500 rose 0.2%
- Nasdaq 100 futures were up 0.7%. The Nasdaq 100 fell 0.1%
- The Topix index fell 0.4%
- Australia’s S & P / ASX 200 Index rose 1.5%
- The Kospi index rose 0.4%
- The Hang Seng Index fell 0.5%
- The Shanghai Composite Index rose 0.8%
- Euro Stoxx 50 Futures Gained 0.5%
- The Japanese yen was at 111.86 per dollar
- The offshore yuan was trading at 6.4723 to the dollar.
- The Bloomberg Dollar Spot Index fell 0.2%. Up 0.7% before
- The euro was at $ 1.1602
- The 10-year Treasury yield was 1.52%.
- The yield on Australia’s 10-year bonds was 1.49%.
- West Texas Intermediate crude was at $ 74.66 a barrel, down 0.2%
- Gold was at $ 1,732.28 an ounce, up 0.3%.
© 2021 Bloomberg