Shares stable in Asia, US stock futures rise: Markets Wrap

(Bloomberg) – A stockbroker in Asia-Pacific was stable on Monday, and US stock futures weighed on a rise as monetary tightening kept sentiment in check.

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The stock markets in Japan and Australia fluctuated, while South Korea fell more than 1%. Both the S&P 500 and Nadsaq 100 contracts were in the green, but outside the early session heights.

Bitcoin held above $ 20,000 after climbing 16% on Sunday to regain the closely monitored price level after a Saturday dizziness.

An unstable crypto-downturn has become symbolic of the pressure on a range of assets from sharp interest rate hikes by the Federal Reserve to tame high inflation.

The dollar was mixed relative to key companies. The yen fell due to the contrast between superfluous Japanese monetary policy and the hawkish Fed.

Crude oil stabilized from a fall of almost 7% on Friday. Treasury futures slipped – there is no cash trade as Wall Street is closed on Monday due to a public holiday.

Markets are set to remain on the edge amid increased price pressure and concerns that monetary tightening in a number of countries heralds more losses.

“Data over the coming months will actually point to the need for a greater degree of tightening, and market prices will need to adjust,” Sonal Desai, chief investment officer at Franklin Templeton Fixed Income, wrote in a note.

In the latest Fed comment, Governor Christopher Waller said he would support another 75 basis point rate hike at the central bank meeting in July if the economic data comes in as he expects.

Bank of Cleveland Fed President Loretta Mester said the risk of a US recession is rising, adding that it will take several years to return to the 2% inflation target. Fed Chairman Jerome Powell is due to appear before U.S. lawmakers this week.

China Outlook

In China, Bloomberg Economics expects banks to keep prime interest rates stable. Chinese equities have recently emerged as a bright spot in the middle of a global route, aided by the nation’s pledge of political support to support the economy.

President Joe Biden said on Saturday that he will speak with his Chinese counterpart Xi Jinping “soon” and consider possible actions in relation to US tariffs on China, which were imposed by the Trump administration.

“We are in the process of doing so,” Biden told reporters on Saturday when asked if he had decided to lift any of the tariffs. “I’m in the process of deciding.”

What to see this week:

  • China’s prime interest rate on loans, Monday

  • RBA minutes, Governor Philip Lowe speaks Tuesday

  • Fed Chairman Jerome Powell semi-annual Senate testimony Wednesday

  • Bank of Japan April minute, Wednesday

  • Powell US House testimony, Thursday

  • US first unemployment applications, Thursday

  • Eurozone PMIs, France, Germany, UK, Australia, Thursday

  • ECB Financial Bulletin, Thursday

  • US University of Michigan consumer sentiment Friday

  • RBA’s Lowe speaks in the panel on Friday

Some of the key movements in markets:

Equities

  • S&P 500 futures rose 0.3% from 9:23 in Tokyo. The S&P 500 rose 0.2% on Friday

  • Nasdaq 100 futures rose 0.6 pct. The Nasdaq 100 rose 1.2% on Friday

  • Japan’s Topix index rose 0.1%

  • Australia’s S & P / ASX 200 index was slightly changed

  • South Korea’s Kospi fell 1.4 percent.

  • Euro Stoxx 50 futures rose 0.2%

Currencies

  • The Bloomberg Dollar Spot Index was stable

  • The euro fell 0.1% to $ 1.0494

  • The Japanese yen was at 135.21 per dollar, down 0.1%

  • The offshore yuan was $ 6.7076 per dollar

Bonds

Raw materials

  • West Texas Intermediate crude rose 0.5% to $ 110.15 per barrel. barrel

  • Gold was at $ 1,388.61 an ounce

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