Comments
Asian stocks traded mixed Wednesday as investors weighed U.S. dip buying against remarks from Federal Reserve officials that pointed to a slow economic recovery. The dollar rebound stalled at key technical resistance.
Japanese shares dipped as traders returned from a holiday, while benchmarks in Australia and South Korea saw modest gains. S&P 500 futures were little changed after most sectors in the index advanced overnight, with retailers and tech stocks among the biggest gainers. Bank shares fell. Crude oil dipped and Treasuries were steady.
Related Stories
Wall Street closes higher on Amazon boost, despite economic worries
Dow gains 0.52%, S&P 500 1.05%, Nasdaq 1.7%U.S. shares had slipped earlier Tuesday after Fed Chairman Jerome Powell said the economy has a long way to go before fully recovering and will need further support. Meanwhile, Chicago Fed President Charles Evans noted that rates could rise before the inflation target is reached.
Global stocks are on track for their first monthly drop since March on the lack of another U.S. fiscal stimulus package and an increase in global virus cases that has raised the spectre of more lockdowns. British Prime Minister Boris Johnson announced new restrictions that are likely to last six months and told people to work from home if possible, saying the country is at a perilous turning point for the virus.
This is a massive roller coaster and you just have to hold your stomach, Erin Gibbs, president and CEO of Gibbs Wealth Management, said on Bloomberg TV. We are most likely to see this continued high volatility until the U.S. election in November, she said.
These are some events to watch this week: Powell appears before the House Select Subcommittee on the coronavirus to discuss the central banks response on Wednesday. New Zealand rate decision on Wednesday. U.S. initial jobless claims are due Thursday. These are some of the main moves in markets:
Stocks
Futures on the S&P 500 were little changed as of 9:02 a.m. in Tokyo. The gauge advanced 1.1% on Tuesday. Topix index fell 0.5%. Australia’s S&P/ASX 200 Index gained 0.6%. South Korea’s Kospi index rose 0.8%. Hang Seng Index futures slipped 0.2%.
Currencies
The yen fell 0.1% to 105.08 per dollar. The Bloomberg Dollar Spot Index was steady after climbing 0.5%. The euro bought $1.1705. The offshore yuan traded at 6.7840 per dollar. Bonds The yield on 10-year Treasuries held at 0.67%. Australia’s 10-year bond yield rose one basis point to 0.84%.
Commodities
West Texas Intermediate crude slid 0.2% to $39.73 a barrel. Gold was at $1,903.01 an ounce, up 0.2%.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.