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Stocks, US Futures rose; Treasury Yield Advances: Market Ends

(Bloomberg) – Asian stocks climbed on Tuesday, US equity futures edged higher and Treasuries retreated amid more stabilizing investor sentiment from last week in equity markets. Global.

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Japanese shares led the gains, while Hong Kong and China fell more as traders gauge the likely impact of the Covid outbreak in Shenzhen and Macau.

The drop in Treasuries brought the 10-year benchmark yield to 3.30%. Further volatility in bonds, in light of the Federal Reserve’s intention to raise interest rates sharply to curb inflation, could shake global markets once again.

Australian Yields No Rise – Central Bank Governor Philip Lowe reiterated more likely to raise rates but pushed back on expectations of a 75 basis point increase in July.

The dollar fell and the yen hovered near a 24-year low, eased by the contrast between the super-dovish Bank of Japan and the hawkish Fed.

In commodities, oil rose, while prices of metals such as copper were rising on concerns about the outlook for demand amid weakening global growth.

Frances Stacy, chief strategy officer at Optimal Capital, said on Bloomberg TV: “There could be word that we’ve bottomed, oversold, the Fed is taking inflation seriously and that could be. slightly increase in price in the near future”.

But investors continue to face a longer-term outlook. Fed President St. Louis James Bullard warned that U.S. inflation expectations could “become unsustainable without credible action by the Fed,” while former Treasury Secretary Lawrence Summers argued that the nation’s unemployment rate would need to rise above 5% for a sustained period to contain prices. pressure.

Earlier, European Central Bank President Christine Lagarde reiterated officials’ intention to raise interest rates in July and September, signaling that concerns about financial market stress are not derailed. war against inflation.

Elsewhere, Bitcoin has held above $20,000 after a tumultuous period for the cryptocurrency.

What to watch this week:

  • RBA Minutes, Governor Philip Lowe to speak, Tuesday

  • Fed Chairman Jerome Powell testifies semi-annually in the Senate, Wednesday

  • Bank of Japan April minute, Wednesday

  • Powell US House testimony, Thursday

  • First US jobless claims, Thursday

  • PMI for Eurozone, France, Germany, UK, Australia, Thursday

  • ECB Economic Bulletin, Thursday

  • University of Michigan Consumer Sentiment, USA, Friday

  • RBA’s Lowe speaks on the panel, Friday

Some key moves in the market:

Inventory

  • S&P 500 futures are up 1.4% at 10:58 a.m. in Tokyo

  • Nasdaq 100 futures contract up 1.4%

  • Japan’s Topix index up 1.7%

  • Australia’s S&P/ASX 200 Index is up 1.2%

  • South Korea’s Kospi rose 0.3%

  • Hang Seng Index up 0.8%

  • The Shanghai Composite Index rose 0.3%

  • Euro Stoxx 50 stable futures

Currency

  • The Bloomberg Dollar Spot Index is down 0.1%.

  • The euro was at $1.0536, up 0.2%

  • Japanese yen at 135.05 per dollar

  • The offshore yuan was at 6.6753 per dollar, up 0.2%

Bonds

Goods

  • West Texas Intermediate crude rose 1.8% to $111.55 per barrel

  • Gold was little changed at $1,840.55 per ounce

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