Wednesday, January 26

Stocks Stable, US Futures Up; Commodity rally: markets close


Asian stocks were flat on Monday, while US and European equity futures rose as traders weighed the economic risks of the omicron virus variant, as well as stricter central bank policies for fight inflation.

MSCI Inc.’s Asia Pacific Stock Indicator changed shortly after erasing a rise. A sudden drop in bonds from developer Shimao Group Holdings Ltd. dampened sentiment as it renewed concerns about the health of Chinese real estate firms amid Beijing’s crackdown on the real estate sector.

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S&P 500, Nasdaq 100 and European futures rose. US stocks closed at a record on Friday after a high inflation impression but in line with predictions.

The Federal Reserve is expected to accelerate the withdrawal of the stimulus on Wednesday and perhaps open the door to earlier interest rate hikes in 2022 if price pressures remain near a four-decade high. The 10-year US Treasury yield was close to 1.48% and the dollar rose.

The pound fell after Prime Minister Boris Johnson warned that the UK was facing a “surge” of omicron infections. He set a year-end deadline for the country’s booster vaccination program.

About 20 central banks are meeting this week, including the Fed, the European Central Bank and the Bank of England. Those decisions have the potential to spark market changes as traders assess the resilience of global reopening to less generous monetary environments and coronavirus challenges.

“Global stocks had a solid run last week and we’ll see if the goodwill endures in what is a behemoth when it comes to event risk,” wrote Chris Weston, head of research at Pepperstone Financial Pty Ltd., in a note. . Omicron and the Fed should dictate sentiment, he added.

In cryptocurrencies, Bitcoin and Ether fell. An affiliate of Binance, the world’s largest crypto exchange, withdrew its application for a license to run a digital token exchange in Singapore.

Elsewhere, raw materials such as oil and iron ore were recovered. Part of that move came amid signs that China could take steps to boost its economy, a narrative that had helped Asian stocks on Monday before sentiment turned more mixed.

China’s top decision makers signaled last week that policies could be more supportive of growth next year. Economists predict that China will start adding fiscal stimulus in early 2022.

In Turkey, the lira fell below 14 to the dollar, hitting new all-time lows, after S&P Global Ratings lowered the outlook for the nation’s sovereign credit rating to negative.

The Bloomberg’s Markets Live team is conducting a survey on asset views for 2022. It is anonymous, takes about 2 minutes, and the results will be shared by the end of December.

Here are some key events from this week:

  • The US Federal Open Market Committee kicks off its two-day policy meeting. Tuesday
  • China publishes industrial production and retail sales data for November. Wednesday
  • FOMC rate decision and Powell press conference. Wednesday
  • Rate decisions from Indonesia, the Philippines, Mexico, Bank of England, European Central Bank (Christine Lagarde report), Norway, Switzerland, Taiwan, Turkey. Thursday
  • Markit Manufacturing PMI: Eurozone, France, Germany, UK, Australia. Thursday
  • Evaluate decisions of Colombia, Japan, Russia. Friday

Stocks

  • S&P 500 futures rose 0.3% at 7:09 am in London. The S&P 500 rose 1% on Friday
  • Nasdaq 100 futures were up 0.3%. The Nasdaq 100 rose 1.1%
  • Japan’s Topix index rose 0.1%
  • Australia’s S & P / ASX 200 Index advanced 0.4%
  • South Korea’s Kospi Index fell 0.3%
  • Hong Kong’s Hang Seng Index remained flat
  • China’s Shanghai Composite Index rose 0.4%
  • Euro Stoxx 50 futures rose 0.4%

Coins

  • The Japanese yen is trading at 113.55 per dollar.
  • The offshore yuan was at 6.3668 to the dollar.
  • Bloomberg’s dollar spot index rose 0.2%
  • The euro is trading at $ 1.1284

Captivity

  • The 10-year Treasury yield was 1.48%.
  • The yield on Australia’s 10-year bonds stood at 1.60%, three basis points lower

Raw Materials

  • West Texas Intermediate crude rose 1.4% to $ 72.67 a barrel
  • Gold was at $ 1,784.49 an ounce, up 0.1%.

© 2021 Bloomberg


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