Asian stocks rose and Treasuries tumbled on Monday in a steady mood in global markets after Wall Street shares bounced.
Japan and Hong Kong have accelerated regional equity gains, while the U.S. and European futures have changed little, providing some relief from this year’s stock market crash. The dollar hit a two-year high.
Sentiment could get a boost from China, which has effectively cut interest rates for new mortgages over the weekend, seeking to strengthen a sick real estate market. The one-year policy loan rate remained unchanged on Monday.
Kovid lockdown is suppressing economic activity in China. Shanghai has partially eased barriers by announcing the reopening of stores in phases.
In the bond market, a key question is whether economic concerns will help stop Treasury sales in 2022, driven by inflation and tightening of US financial settings. The 10-year U.S. yield rose to about 2.93%
Cryptocurrency was relatively quiet compared to last week’s route. Bitcoin held a weekend advance to trade around $ 31,000.
Russia’s war in Ukraine and China’s Kovid outbreak, as well as the risk of economic downturn amid high inflation and rising debt spending are major concerns for the market. Despite a 17% drop in global stocks this year, many traders are wary of calling down for equity.
Chris Weston, head of research at the Pepperstone Group, said in a note, “There is a belief that we could see a short-term calm before potentially lowering another leg with more levels of panic involved.”
Lloyd Blankfein, senior chairman of Goldman Sachs Group Inc., called on companies and consumers to take a hard line on the US recession, saying it was a “very, very high risk”.
Firm economists have lowered their forecasts for U.S. growth this year and beyond – they now expect the economy to expand 2.4% this year and 1.6% in 2023, down from the previous 2.6% and 2.2%.
Food and fuel prices keep pace with rising costs. A move by India to limit wheat exports has pushed up the price by the exchange limit, reflecting the tightening of global supply. Oil holds about $ 110 per barrel.
Europe’s geopolitical concerns over the Russia-Ukraine war may be in the spotlight. Finland and Sweden are moving to join the North Atlantic Treaty Organization, raising potential tensions.
“Markets are being defined as volatile, fragile and somewhat volatile,” said Citigroup Senior Investment Specialist Mahzabin Zaman on Bloomberg Television.
What to watch this week:
- China Retail Sales, Industrial Production, Unemployment, Property Sales, Liquidity Operations. Monday
- New York Fed President John Williams spoke Monday
- Fed Chair Jerome Powell in the slate of the Fed speaker. Tuesday
- The Reserve Bank of Australia has released the minutes of its May policy meeting. Tuesday
- Meeting of G-7 Finance Minister and Central Bankers. Wednesday
- Eurozone, UK CPI. Wednesday
- Philadelphia Fed President Patrick Harker speaks. Wednesday
- China main rate of debt. Friday
Some of the major rice in the market:
- The S&P 500 futures fell 0.1% in Tokyo by 10:50 a.m. The S&P 500 rose 2.4% on Friday
- Nasdaq 100 futures rose 0.1%. The Nasdaq 100 rose 3.7% on Friday
- Japan’s topics index rose 0.5%
- Australia’s S&P / ASX 200 index rose 0.6%
- South Korea’s Kospi index rose 0.2%
- Hong Kong’s Hang Seng Index rose 0.6%
- China’s Shanghai Composite Index rose 0.1%
- The Bloomberg dollar spot index was stable
- The euro was down 0 1.0402, down 0.1%
- The Japanese yen was at 129.14 per dollar
- Offshore yuan was 6.7975 per dollar
- Yields on 10-year Treasuries rose 2.93% to one basis point
- Australia’s 10-year bond yield fell two basis points to 3.38%
- West Texas Intermediate crude fell 0.7% to $ 109.66 a barrel
- Gold was at 8 1,815.56 an ounce, up 0.2%