Wednesday, January 19

Stocks Rise, Futures Hold As US Payrolls Hover – Markets Close


Most Asian stocks rose on Friday helped by a rise in Chinese stocks and easing concerns about the US debt ceiling. Treasury bond yields rose ahead of a key US jobs report.

Japanese stocks outperformed and China advanced after reopening after a long holiday. S&P 500, Nasdaq 100 and European futures fluctuated after a third day of gains for US stocks. The Senate voted to temporarily increase the debt ceiling, breaking a prolonged stalemate that had hit the markets.

China’s equity indicators weathered ongoing debt problems in the nation’s real estate sector and Beijing’s regulatory expansions. Government bond futures fell as the central bank depleted the short-term liquidity of the banking system.

The 10-year US Treasury yield reached its highest level since June. Investors are concerned about inflation amid a global energy crisis, and Friday’s US payroll report could cement expectations that the Federal Reserve will soon begin to reduce bond purchases. The debt of Australia and New Zealand fell, the yen fell and the dollar rose.

Global stocks are headed for their best week since early September, helped by the United States’ move to avoid the risk of an immediate default amid political disputes over the debt limit. But commodity-driven price pressures, the prospect of tighter monetary policy and a slowdown in China’s real estate sector remain risks to a recovery from the pandemic.

“As soon as you start thinking about cutting, it’s really hard not to think about what that means for the Fed funds rate and when it might start to rise,” Kim Mundy, currency strategist and international economist at Commonwealth Bank of Australia in Sydney. he said on Bloomberg Television. “We see possibilities that markets could start pricing in a more aggressive Fed fund rate hike cycle.”

Elsewhere, oil extended a rally after the US Department of Energy said it has no plans “at this time” to tap into the country’s oil reserves to help quell rising fuel prices. Bitcoin’s recent strong rally stopped around the $ 54,000 level.

Here are some events to watch this week:

  • US Department of Labor Releases Data on Unemployment and Job Creation on Friday

Some of the main movements in the markets:

Stocks

  • S&P 500 futures were little changed at 6:50 am in London. The S&P 500 was up 0.8%.
  • Nasdaq 100 contracts fell 0.1%. The Nasdaq 100 rose 0.9%
  • Japan’s Topix Index increased 1.4%
  • Australia’s S & P / ASX 200 Index was 0.9% higher
  • South Korea’s Kospi lost 0.1%
  • Hong Kong’s Hang Seng Index added 0.2%
  • China’s Shanghai Composite Index increased 0.6%

Currencies

  • Bloomberg’s dollar spot index rose 0.1%
  • The euro was at $ 1.1550
  • The Japanese yen was at 111.91 to the dollar, down 0.3%.
  • The offshore yuan was at 6.4521 to the dollar.

Captivity

  • The 10-year Treasury yield advanced about two basis points to 1.60%.
  • Australia’s 10-year bond yield rose five basis points to 1.64%

Raw Materials

  • West Texas Intermediate crude rose 1.5% to $ 79.46 a barrel
  • Gold was at $ 1,758.16 an ounce, up 0.1%.

© 2021 Bloomberg


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