Asian stocks rose higher on Tuesday, with US stocks reaching record highs as investors watched the start of the season of corporate profits and relatively smooth government debt sales.
Shares rose in Hong Kong and Japan and fluctuated in China. Shares in the US were stable after a slight retreat of the S&P 500 index after three consecutive gains. Technical stocks weakened, led by Intel Corp. such as Nvidia Corp. focus on your microprocessors market.
Bond yields have risen only slightly after the US Treasury Department̵
The positive growth outlook for the US should help corporate profits, although stocks appear precarious at these record highs, given jumps in the Covid-19 problematic vaccinations in some parts of the world. The potential for a sharper rise in inflation and borrowing costs are also paramount, with investors focusing on US consumer price data and the strength of demand for the remaining government bond auction.
“The real test will be when inflation starts to rise,” said Priya Misra, global head of interest rate strategy at Bloomberg TV’s TD Securities. “Then the rates will have to be recalculated – either for an earlier exit from the Fed, or for a later exit, but a faster way.”
Elsewhere, President Joe Biden told companies fighting for tightly limited global semiconductor supplies that he has bilateral support for government funding to address the shortage that has hit carmakers around the world. Finance Minister Janet Yellen will do it refuse to name China as a currency manipulator in its first semi-annual currency report, according to insiders, allowing the United States to avoid a new clash with Beijing.
Oil calmed just under $ 60 a barrel and the dollar jumped higher. Bitcoin climbed back over $ 60,000 before listing on the largest US cryptocurrency exchange.
Some key events to watch this week:
- Banks and financial intermediaries began to report profits for the first quarter, inclusive JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.
- The United States released inflation data on Tuesday.
- The Washington Economic Club is hosting Fed Chairman Jerome Powell for moderated questions and answers on Wednesday.
- The US Federal Reserve releases the Beige Book on Wednesday.
- Data for the United States, including initial claims for unemployment, industrial production and retail sales, came on Thursday.
- China’s economic growth, industrial production and retail sales are on Friday.
These are some of the main moves in the financial markets:
- S&P 500 futures were flat from 10:37 a.m. in Tokyo. The index changed slightly on Monday.
- The Japanese Topix index rose 0.5%.
- The Shanghai Composite Index has changed slightly.
- The Hang Seng index rose 0.6%.
- South Korea’s Kospi index rose 0.7%.
- The Australian S & P / ASX 200 index was 0.2% higher.
- The Bloomberg Dollar Spot index rose 0.1%.
- The yen fell 0.2% to 109.57 per dollar.
- The euro fell 0.1% to $ 1.1900.
- The offshore yuan was at 6.5497 per dollar.
- The yield on 10-year government securities rose by one basis point to 1.67%.
- Australia’s 10-year yield is two basis points higher at 1.80%.
- West Texas crude was stable at $ 59.71 a barrel.
- Gold was 0.1% lower at $ 1,731.07 an ounce.
– With the assistance of Vildana Hajric, Claire Ballentin and Katherine Greifeld