(Bloomberg) – Asian stocks held steady Monday after US stocks extended a rally on speculation that the Federal Reserve has room to continue providing significant stimulus support. Oil plunged amid OPEC + tensions.
Shares slid in Japan and Hong Kong, and fluctuated in China, where cybersecurity investigations against ride-hailing giant Didi Chuxing, as well as several other online platforms, underscored Beijing’s drive to curb the influence of the country’s internet companies. Chinese tech companies broke into Hong Kong.
The S&P 500 hit a record on Friday on a seventh day after a US labor market report signaled the economy was picking up momentum, but not at a pace that would prompt the central bank to quickly cut incentives. US equity contracts fell. The US stock and bond markets are closed on July 4th, Independence Day.
The price of oil was around $ 75 per barrel amid an OPEC + dispute. The stalemate between Saudi Arabia and the United Arab Emirates has the global economy guessing how much oil it will get next month.
While last month’s US employment report eased concerns about the Fed’s restrictive stance, central banks around the world are gradually pulling back on the contingency measures they have put in place to combat the pandemic-induced global recession. For example, the Reserve Bank of Australia is expected to cut some incentives at its meeting on Tuesday despite continued containments against a recent Covid-19 flare-up.
“Markets are being valued for the continuation of a scenario that could not be better constructed,” wrote Chris Iggo, chief investment officer for core investments at AXA Investment Managers, in a press release. “Investors live with risks that are viewed as manageable, while growth and the technical equipment of our financial system reward the capital allocated to the risk.”
Treasuries rallied and the dollar fell on Friday after the job report was viewed as support for the Fed’s accommodating stance. The greenback made up some of the losses on Monday. Investors await the minutes of the Federal Reserve Open Market Committee later this week for guidance on the policy outlook.
Meanwhile, a scale of China’s services industry slowed sharply in June after virus outbreaks in some parts of the country and weaker orders. The survey shows a bigger drop in services than the official non-manufacturing metric released last week.
Here are some events to watch this week:
Fundamental decision of the Reserve Bank of Australia TuesdayFOMC minutes Wednesday The group of 20 finance ministers and central bankers will meet in Venice on FridayChina PPI and CPI data released on Friday
These are some of the key moves in the markets:
S&P 500 futures were down 0.1% at 1:42 pm. in Tokyo. The S&P 500 rose 0.8% on Friday and the Nasdaq 100 futures fell 0.1%. The Nasdaq 100 rose 1.2%, Japan’s Topix index fell 0.2%, Australia’s S & P / ASX 200 index rose 0.1%
The Japanese yen was trading at 111.13 per dollar; the offshore yuan was trading at 6.4648 per dollar, up 0.1%; the Bloomberg Dollar Spot Index was up 0.1%; the euro was trading at $ 1.1854
The 10-year Treasury yield fell three basis points to 1.42% on Friday; Futures were futures little changed Australia’s 10-year bond yields fell about four basis points to 1.43%
West Texas Intermediate crude oil was down 0.1% to $ 75.10 per barrel of gold, at $ 1,787.83 an ounce
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