(Bloomberg) — Asia stocks look set to trade cautiously at the open Monday as investors assess the pace of economic recovery.
Futures were little changed in Australia, Japan and Hong Kong. Australian shares will be closely watched after Sydney went into a two-week lockdown to stem a resurgence of Covid-19. U.S. futures were little changed. The S&P 500 had its best week since February, with financial and retail shares beating the technology giants that outperformed at the height of the pandemic. Treasuries retreated.
Bitcoin traded below $33,000 as cryptocurrencies will be closely watched after the U.K. restricted crypto exchange Binance from doing business in the country.
Global stocks ended last week at a record high as anxiety about the Federal Reserve’s hawkish tilt eased, with investors dialing back concerns that U.S. policy makers will rush to boost interest rates despite mounting inflation pressures. Volatility receded, with the Cboe Volatility Index, or the VIX, sinking to pre-pandemic levels.
The Fed “are far away from tapering, they are far away from increasing rates, but at some point, if the markets sees the Fed being too far behind the curve you will start to see some adjustment on the long end of the curve,” Charles-Henry Monchau, chief investment officer at FlowBank SA, said on Bloomberg TV. “We might not have seen the peak in bond yields. I would not be surprised to see some adjustments in the coming months. That might be an excuse for the market to take a bit of profit.”
Data Friday showed personal spending stagnated in May, while a closely watched inflation measure continued to climb. Meantime, U.S. consumer sentiment rose in June by less than forecast and longer-term inflation expectations moderated from a month earlier.
Here are some events to watch in the markets this week:
Reserve Bank of Australia Governor Philip Lowe addresses a banking summit in Sydney TuesdayOECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation WednesdayChina’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party ThursdayOPEC+ ministerial meeting ThursdayECB President Christine Lagarde speaks FridayThe U.S. jobs report is forecast to show an acceleration in payrolls growth in June Friday
For more market commentary, follow the MLIV blog.
These are some of the main moves in markets:
S&P 500 futures were little changed as of 7:04 a.m. in Tokyo. The S&P 500 rose 0.3% FridayNasdaq 100 futures were flat. The Nasdaq 100 fell less than 0.1%Nikkei 225 futures fell 0.1%Australia’s S&P/ASX 200 Index futures were little changedHang Seng Index futures rose 0.1% earlier
The yen was little changed at 110.80 per dollarThe offshore yuan was at 6.4596 per dollarThe Bloomberg Dollar Spot Index was little changed FridayThe euro was at $1.1937The Aussie was at 75.92 U.S. cents
The yield on 10-year Treasuries advanced three basis points to 1.52% Friday
West Texas Intermediate crude was at $74.05 a barrelGold was at $1,781.40 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.