Monday, January 24

Stocks and futures rise as earnings support sentiment – markets wind down


Most Asian stocks rose Tuesday after a record close of the S&P 500, as corporate earnings and progress on President Joe Biden’s economic agenda helped confidence even as the debate over inflation risks intensified.

Stocks rose in Japan and fluctuated in China and Hong Kong. The operators assimilated a video call between the Vice Premier of China, Liu He, and the Secretary of the Treasury of the United States, Janet Yellen, on economic questions. The Chinese side said the call was “pragmatic, sincere and constructive.”

US futures advanced, with Nasdaq 100 contracts outperforming. The tech heavy gauge led to US earnings overnight amid a rally by Tesla Inc. to a market value of $ 1 trillion. Facebook Inc. was higher in recent trades thanks to strong user growth and a commitment to buy back up to $ 50 billion more in stock.

The yield on 10-year US Treasuries rose and the dollar was stable. The debate over price pressures continues, and former Treasury Secretary Lawrence Summers said officials are unlikely to deal successfully with the “reality of inflation” until they fully recognize it.

A relatively strong earnings season is helping to counter concerns that high inflation and tighter monetary policy will slow the economic recovery from the pandemic. About 81% of S&P 500 members have reported better-than-expected earnings so far. Traders are also monitoring the increasing cases of Covid-19 in China and other parts of the world.

Equity markets “continue to recover and we expect this process to continue beyond the gains from big technologies” and this week’s meeting of the European Central Bank, where policy makers can signal the end of their buyout program. Pandemic bonds, Sebastien Galy, senior macrostraga at Nordea Mutual Funds, wrote in a note.

In China, Modern Land China Co. became the latest builder to fail to pay a dollar bond, a further sign of stress in the country’s real estate sector. Chinese borrower defaults on offshore bonds have soared to a record.

Meanwhile, American Democrats have moved closer to a deal on Biden’s multibillion-dollar economic agenda. That could allow the House to pass a $ 550 billion infrastructure bill this week.

Crude oil was little changed around $ 84 a barrel as investors weighed the prospects for US reserves and the prospects for talks that may eventually help revive an Iranian nuclear deal, allowing a rebound in crude exports.

Gold held above $ 1,800 an ounce and Bitcoin traded around $ 62,800.

Here are some events to watch this week:

  • Revenues: Amazon, Apple, Microsoft, Twitter, Samsung Electronics, China Vanke, PetroChina, Ping An Insurance Group
  • Australia CPI, Wednesday
  • US Wholesale Inventories, US Durable Goods, Wednesday
  • Bank of Japan Monetary Policy Decision Briefing, Thursday
  • ECB rate decision, briefing by President Christine Lagarde, Thursday
  • US GDP, Initial Unemployment Claims, Thursday
  • G20 joint finance and health ministers meet ahead of weekend leaders’ summit, Friday

Some of the main movements in the markets:

Stocks

  • S&P 500 futures were up 0.3% at 1:46 pm in Tokyo. The S&P 500 rose 0.5%
  • Nasdaq 100 futures were up 0.5%. The Nasdaq 100 rose 1%
  • Japan’s Topix index rose 1.2%
  • Australia’s S & P / ASX 200 Index was little changed
  • South Korea’s Kospi Index gained 0.8%
  • Hong Kong’s Hang Seng Index lost 0.4%
  • China’s Shanghai Composite Index rose 0.1%
  • Euro Stoxx 50 futures were flat

Currencies

  • The Japanese yen was at 113.94 per dollar.
  • The offshore yuan was trading at 6.3817 to the dollar.
  • Bloomberg’s dollar spot index rose less than 0.05%
  • The euro was at $ 1,1600

Captivity

  • The 10-year Treasury yield rose one basis point to 1.64%.
  • The yield on Australia’s 10-year bonds increased three basis points to 1.81%.

Raw Materials

  • West Texas Intermediate crude was at $ 83.87 a barrel, up 0.1%
  • Gold was at $ 1,802.28 an ounce, down 0.3%.

© 2021 Bloomberg


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