Asian stock markets began slowly on Monday as the holidays in China and Japan shrank, and investors expected more data this week to show that the United States is leading a global economic recovery.
MSCI’s broadest Asia-Pacific equity index outside Japan (.MIAPJ0000PUS) was virtually unchanged after spilling slightly on Friday. Japan̵
Wall Street extended its bull with Nasdaq and S&P 500 futures, both up 0.3 percent.
The busy week for US economic data is expected to show tremendous strength, especially for the ISM production survey and payroll in April. Estimates are that 978,000 jobs have been created during the month as consumers have spent their money on incentives and the economy has opened up more.
Such gains could spark speculation to reduce asset purchases by the Federal Reserve, although President Jerome Powell has shown all signs of remaining patient in politics.
“Salary reports should show nearly 1 million more jobs won, but that will still leave them 7.5 million below pre-COVID levels,” said Tapas Strickland, NAB’s director of economics.
“President Powell recently noted that it will take a series of months of job creation of around one million a month to make the significant progress needed to justify reducing QE.”
Powell is scheduled to speak later Monday, and will be followed by a number of Fed employees this week. Dallas Fed President Robert Kaplan sparked a stir on Friday, calling for talks to begin on a reduction. Read more
Powell’s patience helped ease the pressure on government securities sales, but the 10-year yield still ended last week with a rise of 6 basis points to last 1.626%.
The increase offers some support for the US dollar, which is being squeezed by the rapid expansion of the US budget and the trade deficit, a by-product of economic performance.
The dollar index reached 91,253 and dropped two months from 90,422, although it ended in April with a loss of 2%.
The euro was stable at $ 1.2026 after retreating from a nine-week high of $ 1.2149 on Friday. It now has solid support around $ 1.1990.
The dollar performed better against the yen at 109.29, well above its recent low of 107.46.
In commodity markets, gold was kept in a narrow range of about $ 1,768 an ounce, in part due to investor interest in cryptocurrencies as an alternative hedge against inflation.
Ether reached a record high on Monday to trade for $ 3,000, extending last week’s rally after a report that the European Investment Bank (EIB) could launch digital bond sales on the ethereum blockchain network. Read more
On Friday, oil prices made a profit, but still ended the month with gains of 6% to 8%.
Brent last rose 16 cents to $ 66.92 a barrel, while US crude rose 18 cents to $ 63.76 a barrel.
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