Asian stocks are likely to open with modest gains on Tuesday after a muted session on Wall Street, where tech giants pressured the market. The dollar fell along with the yield on Treasury bonds.
Futures rose in Australia and Hong Kong. Trade will be limited to Japan and China among the markets closed for the holidays. The S&P 500 closed near session lows, while Tesla Inc. and Amazon.com Inc. put pressure on the Nasdaq 100. The yield on 10-year Treasuries fell to about 1.6% as Federal Reserve Chairman Jerome Powell said the economic recovery remains patchy.
Commodities rose, with silver exceeding precious metals as a prospect of near-zero rates have increased demand for a long time. Copper and oil rose more than 1% on the back of strong increases in energy and material stock prices.
As a reminder of the fragility of the economy and persisting risks of excessive inflation, data for Monday showed that growth among US manufacturers eased in April, while the price paid for materials jumped to its highest level since 2008. Powell said the recovery has been uneven. regardless of race and income. New York Fed President John Williams said current conditions are “not enough” to change the course of monetary policy.
“The world remains near-perfect for stocks,” said Chris Iggo, chief investment officer of core investments at AXA Investment Managers. Despite strong growth, revenue growth and high grades, “no one. No one while picking up the punch bowl. ”
Here are some key events to watch this week:
- US trade balance, production orders, durable goods due on Tuesday
- The Reserve Bank of Australia’s monetary policy decision is expected on Tuesday.
- Chicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic Club
- Bank of England rate decision on Thursday
- The April US employment report will be released on Friday.
Some of the major moves in the markets are:
- S&P 500 up 0.3%
- Nasdaq 100 fell 0.4%
- Australian S & P / ASX 200 Futures Up 0.2%
- Hang Seng Index Futures Up 0.8%
- The yen was trading at 109.07 per dollar.
- The offshore yuan was worth $ 6.4714 per dollar.
- Bloomberg Spot Dollar Index Down 0.3%
- The euro was trading at $ 1.2064.
- The yield on the 10-year Treasury bond fell nearly three basis points to 1.60%.
- West Texas Intermediate crude rose 1.4% to $ 64.49 a barrel
- Gold Futures Rise 1.3% To $ 1,792.90 An Ounce
– With the assistance of Rita Nazareth and Claire Ballentin.