(Bloomberg) – Most Asian stocks were higher on Thursday as talks between the US and China boosted sentiment and strengthened the offshore yuan. Treasuries rallied ahead of the release of the US inflation report, which could provide a clue to the outlook for monetary policy.
Shares in China and Hong Kong rallied, while shares in Japan closed. Contracts for US and European stocks went up. The S&P 500 flirted with a record again before falling, continuing to trade within a range that is also evident globally.
The offshore yuan rallied after the Chinese and US trade ministers agreed to promote trade and investment ties in their first call since President Joe Biden’s administration began. Separately, Biden lifted the Trump-era TikTok and WeChat bans. He ordered to check software applications from foreign attackers and take action against those that pose a security threat.
The yield on 10-year Treasuries fell below 1.5%, supporting the view that recovery from the pandemic will only trigger a short burst of heightened inflation. The yield on Australia’s 10-year bonds declined. The dollar was steady.
Traders are waiting to see if the upcoming US inflation report will change the idea of when the Federal Reserve may begin negotiations to cut asset purchases. World stocks are currently hovering around all-time highs. Meme frenzy and cryptocurrency fluctuations are some of the few sources of sheer volatility.
“Investors believe that current inflationary pressures are temporary,” Ann-Katrin Petersen, investment strategist at Allianz Global Investors, told Bloomberg TV. “They expect the US Federal Reserve to continue its expansionary activities for now.”
The commodity rally, one of the leading reflationary games, continued to slow down. Oil fell amid rising US fuel inventories. Bitcoin was holding the advance.
Ahead is the political decision of the European Central Bank and the G7 summit. The summit should pledge to deliver at least 1 billion additional doses of vaccine over the next year to help reach 80% of the world’s adult population.
Read the market commentary on the MLIV blog.
Here are the key events to watch this week:
US consumer price index on Thursday. The decision of the European Central Bank on Thursday and a press conference with President Christine Lagarde. Negotiations on a nuclear deal with Iran resumed in Vienna on Thursday. The Group of Seven Leaders Summit kicks off on Friday in Cornwall, England.
Some of the major moves in the markets are:
S&P 500 futures are up 0.1% as of 7:00 am in London. The index fell 0.2%. Nasdaq 100 futures were largely unchanged. Japan’s index remained virtually unchanged. Japan’s Topix Index is unchanged. Australia’s S & P / ASX 200 Index rose 0.6%. The Kospi Index in South Korea is up 0.5%. The Hong Kong Hang Seng Index added 0.3%. China’s Shanghai Composite Index rose 0.4%. Euro Stoxx 50 futures were up 0.1%.
The Japanese yen traded at 109.56 per dollar, gaining 0.1%. The offshore yuan traded at 6.3806 per dollar, up 0.1%. The Bloomberg Dollar Spot Index remained stable. The euro was at $ 1.2164, down 0.1%.
The yield on 10-year Treasuries fell one basis point to 1.48% The yield on Australia’s 10-year bond fell more than eight basis points to 1.49%.
West Texas Intermediate Crude Oil Slips 0.7% to $ 69.46 a barrel Gold fell 0.2% at $ 1,883.91 an ounce.
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