Monday, January 24

US Futures Stable, Asia Stocks Fall; yields rise: markets close


Asian stocks fell on Wednesday as traders assessed more evidence of intensifying pressures on global prices, an outbreak of tension between the United States and China and the outlook for corporate earnings.

Shares fell in Japan and Chinese tech stocks slid on concerns about increased scrutiny by Washington after the United States banned China Telecom’s US business. S&P 500 and Nasdaq 100 futures held steady amid a mixed response to big tech gains released later in the US session.

The debt crisis in China’s real estate sector continues to weigh on the market: authorities told billionaire Hui Ka Yan to use his personal wealth to ease the problems of China Evergrande Group. Meanwhile, a major Chinese regulator called on companies to make “active preparations” to meet offshore bond payments.

In Australia, bond and currency yields rose after core inflation beat estimates. The three-year yield exceeded 1% for the first time since 2019. Treasury yields advanced and the yield curve flattened. The dollar was stable.

Investors are relying on earnings to support share prices and the reporting season has been strong overall so far. But concerns remain that, over time, rising raw material costs and wages and supply chain tangles could reduce margins. Citigroup Inc. warned that earnings growth could be close to peaking.

“There are still downside risks to the economy, but investors are choosing to look further, as companies continue to give us many reasons to be optimistic about what lies ahead,” wrote Craig Erlam, senior market analyst at Oanda, in a note. This “enthusiasm can come and go, creating a lot of two-way actions in the markets,” he added.

Meanwhile, the energy crisis continues to affect the world economy. Coal stocks at US power plants fell to the lowest level in at least 24 years. WTI crude oil slipped below $ 84 a barrel.

Gold fell below $ 1,800 an ounce and Bitcoin fell to around $ 61,200. On the virus front, a Food and Drug Administration panel endorsed the Pfizer Inc. and BioNTech SE vaccine for children. little ones.

Here are some events to watch this week:

  • Revenues: Amazon, Apple, 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 rose 0.1% at 6:30 am in London. The S&P 500 rose 0.2%
  • Nasdaq 100 futures added 0.1%. The Nasdaq 100 rose 0.3%
  • Japan’s Topix Index fell 0.4%
  • Australia’s S & P / ASX 200 Index was little changed
  • South Korea’s Kospi Index fell 0.8%
  • Hong Kong’s Hang Seng Index fell 1.6%
  • China’s Shanghai Composite Index lost 1.1%
  • Euro Stoxx 50 futures fell 0.3%

Currencies

  • The Japanese yen was at 114.04 to the dollar.
  • The offshore yuan was trading at 6.3823 to the dollar.
  • The Bloomberg Dollar Spot Index held steady
  • The euro was at $ 1.1601

Captivity

  • The 10-year Treasury yield rose about two basis points to 1.62%.
  • The yield on Australia’s 10-year bonds rose one basis point to 1.82%.

Raw Materials

  • West Texas Intermediate crude was at $ 83.75 a barrel, down 1%
  • Gold was at $ 1,787.82 an ounce, down 0.3%.

© 2021 Bloomberg


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