Tuesday, January 18

Asian Stocks, US Futures Advance Along With Oil: Markets Conclude


Asian stocks and US equity futures rose Tuesday on bets that vaccines may help control the omicron virus outbreak and signs that President Joe Biden could still revive his $ 2 trillion economic agenda.

MSCI Inc.’s Asia-Pacific stock indicator snapped a two-session slide, bolstered by a rally in Japan and a rebound in Chinese real estate developers. The S&P 500, Nasdaq 100 and European contracts were in the green, indicating stabilization after the global stock index fell further this month on Monday.

Yields on Treasuries and the dollar changed little, while commodity currencies stabilized. Crude oil and iron ore were up. In digital assets, Bitcoin rallied to break above the $ 48,000 level.

The Turkish lira extended a surge triggered by extraordinary government measures to bolster the currency.

Investors are trying to assess to what extent the omicron outbreak will disrupt the global economic reopening and look at the prospects for fiscal stimulus from the US Those risks, along with tightening monetary policy, have hit markets of late.

“There is more uncertainty than I think most people thought we would see here as they were anticipating a Santa Claus rally,” Victoria Fernandez, chief market strategist at Crossmark Global Investments, said on Bloomberg Television. “Volatility and uncertainty are the key terms that will lead us into the new year.”

Moderna Inc. became the latest vaccine maker to say that a third dose of its Covid-19 injection increased antibody levels against omicron, underscoring the range of coronavirus treatments now available.

Biden plan

Meanwhile, Biden hasn’t given up on his roughly $ 2 billion Build Back Better economic plan after Senator Joe Manchin rejected it. Manchin on Monday outlined possible changes that could attract their support, saying it could support a revised $ 1.75 trillion bill.

Mobility slows to stem the risk of coronavirus exacerbating the pandemic-era supply chain and the labor entanglements that have fueled inflation and prompted central banks to tighten currency settings.

“The normalization of monetary policy will continue to generate volatility and keep the debate upward between growth and value,” said Zehrid Osmani, director of long-term unrestricted global equities at Martin Currie. “The omicron variant can disrupt both economic momentum and monetary policies, should it lead to significant new lockdown measures.”

In recent virus developments, omicron accounted for 73% of all Covid-19 infections last week in the US New Zealand is delaying the gradual reopening of its border until the end of February. Daily infections in South Africa, where omicron was first identified, nearly halved, although hospital admissions and deaths increased significantly.

What to watch this week:

  • EIA Crude Oil Inventory Report Wednesday
  • Bank of Japan Governor Haruhiko Kuroda speaks Thursday
  • US Consumer Income, New Home Sales, US Durable Goods, University of Michigan Consumer Sentiment, Initial Unemployment Claims. Thursday
  • Friday: US markets are closed. European markets close earlier

Some of the main movements in the markets:

Stocks

  • S&P 500 futures rose 0.8% at 6:14 am in London. The S&P 500 fell 1.1%
  • Nasdaq 100 futures were up 1.1%. The Nasdaq 100 fell 1.1%
  • Japan’s Topix index rose 1.5%
  • Australia’s S & P / ASX 200 Index added 0.9%
  • South Korea’s Kospi index rose 0.5%
  • Hong Kong’s Hang Seng Index rose 0.9%
  • China’s Shanghai Composite Index increased 0.9%
  • Euro Stoxx 50 futures rose 1.3%

Coins

  • The Japanese yen fell 0.1% to 113.75 per dollar
  • The offshore yuan was trading at 6.3776 to the dollar, up 0.1%.
  • The Bloomberg Dollar Spot Index held steady
  • The euro was at $ 1.1280

Captivity

  • The 10-year Treasury yield rose about one basis point to 1.43%.
  • The yield on Australia’s 10-year bonds increased by about six basis points to 1.60%.

Raw Materials

  • West Texas Intermediate crude rose 1.6% to $ 69.73 a barrel
  • Gold was at $ 1,790.81 an ounce

© 2021 Bloomberg


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