Equity markets jumped into Asian trading on Tuesday Tuesday as investors bide their time ahead of key US employment data later in the week.
While the Dow and S&P 500 on Wall Street showed positive momentum, there was little incentive to grow business, the Tokyo and mainland exchanges were closed for the holidays.
Nonetheless, a senior Federal Reserve official made several encouraging comments, reaffirming the bank’s intention to maintain ultra-weak monetary policy for the foreseeable future, even though it predicted that the world’s leading economy would grow at its fastest growing rate since the 1980s. years.
In an attempt to allay long-standing fears that the expected surge in economic activity this year will lead to higher inflation and higher rates, John Williams, president of the influential New York branch of the Fed, said that “it’s important not to overreact to this price volatility.” …
He added that a sharp rise in inflation was to be expected due to the low base for comparison last year, when the virus brought the global economy to a standstill, but the situation will soon return to normal.
The latest economic survey was released on Friday, when the jobs data for April was released, with some observers suggesting that close to a million jobs have been created.
Analysts said that given the flexibility policy of the Fed and other central banks to tackle the pandemic crisis that is likely to last for some time, markets still have room to grow.
“The world remains near-perfect for stocks,” said Chris Iggo of AXA Investment Managers. Despite strong growth, rising incomes and high grades, “no one is taking away the punch bowl yet.”
However, when stocks are at record or multi-year highs after more than a year rallies, there is a sense that a slight correction awaits them before they resume their upward march.
Hong Kong was marginally higher at the start of trade, a day after data showed the financial center had finally escaped a recession after seven quarters of recession fueled by the pandemic and anti-democracy protests in 2019.
Sydney, Wellington, Manila and Jakarta also rose, but there were losses in Singapore, Seoul and Taipei.
Oil prices boosted Monday’s gains on hopes of resuming travel to Europe as leaders plan to ease restrictions on foreign tourists as early as next month if fully vaccinated or arriving from a country where Covid is under control.
This, along with the deployment of injections across the continent and the United States, has helped allay fears of an alarming surge in India that has crippled the country’s health system and prompted calls for lockdown.
– Key numbers around 02:30 GMT –
Hong Kong – The Hang Seng Index: up 0.1% to 28,373.61
Tokyo – Nikkei 225: closed due to holiday
Shanghai – Composite: closed for weekends.
Euro / Dollar: DOWN $ 1.2048 from $ 1.2066 at 21:00 GMT.
Pound / dollar: $ 1.3884 DOWN from $ 1.3907.
Euro / lb: up 86.77 pence from 86.71 pence.
Dollar / yen: up 109.23 yen from 109.07 yen
West Texas Intermediate: up 0.3% to $ 64.66 a barrel.
Brent North Sea crude: rose 0.3% to $ 67.73 per barrel
New York – Dow: up 0.7% to 34,113.23 (close)
London – FTSE 100: closed for public holiday
– Bloomberg News contributed to this story –
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