Asian Shares Poised to Climb as US Futures Advance: Markets Wrap Golie Mark

(Bloomberg) — US equity futures rallied and Asian shares looked set to rise on Monday after Treasury yields slipped from multiyear highs amid focus on when Federal Reserve rate hikes will peak.

Most Read from Bloomberg

Contracts for share benchmarks in Japan and Hong Kong gained and Australian shares opened higher after stocks on Wall Street had their best week since June.

Trading in major currencies was choppy, with the pound giving back much of a jump made as Boris Johnson pulled out of the race to lead the UK’s ruling Conservative Party, putting Rishi Sunak closer to becoming the next prime minister.

The yen resumed weakening as focus turned from intervention to support the currency to the Bank of Japan, which is expected to stick with ultra-loose monetary policy at its meeting later in the week.

More broadly across markets, investors are looking beyond the present state of aggressive monetary tightening by the Federal Reserve to the next phase, which may see a slowing or pause in interest-rate hikes. That’s providing support amid headwinds from the war in Ukraine to risks from China.

Traders in Asia will also be weighing the conclusion of the party congress in Beijing, which saw Xi Jinping tighten his grip on power. The outcome suggests his Covid-zero campaign will continue to weigh on the economy and has also fueled speculation that his “common prosperity” goal may even lead to property and inheritance taxes.

The S&P 500 jumped 2.4% Friday amid an increase in appetite for bullish US equity wagers following an equity rout that’s already erased $13 trillion in market value this year.

Ten-year Treasury yields reversed an earlier surge Friday, closing down by one basis point at 4.22%. Yields opened lower in Australia on Monday, led by the policy-sensitive three-year maturity.

St. Louis Fed President James Bullard and his San Francisco counterpart Mary Daly made clear they expect the discussion at the November gathering to include debate on how high to raise rates and when to slow the pace of increases. They stressed the need to keep tightening for now.

Key events this week:

  • Earnings due this week include: Apple, Microsoft, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Alphabet, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Coca-Cola, HSBC, Intel, McDonald’s, Mercedes-Benz, Merck, Samsung Electronics, Shell, UBS, UPS, Vale, Visa, Volkswagen

  • PMIs for Eurozone, US, Monday

  • US Conference Board consumer confidence, Tuesday

  • Bank of Canada rate decision, Wednesday

  • China industrial profits, Thursday

  • ECB rate decision, Thursday

  • US GDP, durable goods orders, initial jobless claims, Thursday

  • Bank of Japan policy decision, Friday

  • US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:


  • S&P 500 futures rose 0.9% as of 8:01 a.m. Tokyo time. The S&P 500 rose 2.4% Friday

  • Nasdaq 100 futures rose 1.1%. The Nasdaq 100 rose 2.4%

  • Australia’s S&P/ASX 200 Index rose 0.6%

  • Nikkei 225 futures 0.9%

  • Hang Seng Index futures 1.2%


  • The Bloomberg Dollar Spot Index rose 0.3%

  • The euro fell 0.2% to $0.9847

  • The Japanese yen fell 1.1% to 149.23 per dollar

  • The offshore yuan fell 0.5% to 7.2692 per dollar

  • The British pound rose 0.2% to $1.1330


  • Bitcoin rose 0.6% to $19,605.98

  • Ether rose 2.8% to $1,367.63



Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

Source link

What do you think?

Written by moz

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

‘Game of Thrones’ Controversies Over the Years: Sexposition, More Golie Mark

Thorns defeat Wave 2-1, head to NWSL championship match Golie Mark