(Bloomberg) – Asian stocks are set to start the week higher after US stocks set new records in a broad-based rebound on Friday. The Australian dollar plummeted in early trading as Sydney’s worsening virus cases threatened an extension of the lockdown.
Futures rose in Japan, Australia and Hong Kong. Key US benchmarks ended at all-time highs last week as investors continued to bet that global growth will stay on track despite new Covid-19 flavors. China’s central bank has cut the amount of cash most banks must hold in reserve to underpin profits, and the government proposed new rules for companies listed abroad.
Government bonds rallied for eight days and the dollar fell against major competitors. Oil posted its first weekly loss in seven years after stalling in the OPEC + dispute over a short-term increase in production.
Investors will turn their attention to the second quarter reporting season starting this week for signs of corporate strength. At the same time, central banks from Australia to the US are in no hurry to withdraw the incentives that helped recover from the pandemic.
While markets will remain volatile as cases of the highly contagious Delta variant increased globally, “the upward trend in stocks, led by cyclical trades, is likely to continue through the end of the year as increased vaccination coincides with a continuation of economic activity Recovery enables “Interest rates and bond yields remain low,” said Shane Oliver, director of investment strategy and chief economist at AMP Capital.
Meanwhile, the tension between the US and China continues to simmer. Washington has blacklisted 34 Chinese companies for suspected human rights abuses and high-tech surveillance in Xinjiang.
Here are some events to watch this week:
Bank of America, BlackRock, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley are among the firms kicking off the U.S. earnings season A closely watched inflation metric – June’s U.S. consumer price index – will provide insight into inflationary pressures on Tuesday The Reserve Bank of New Zealand Latest interest rate policy Wednesday Bank of Korea monetary decision Thursday China’s second quarter GDP, key economic indicators Thursday Federal Reserve Chairman Jerome Powell appears before the Senate Banking Committee to present the semi-annual monetary policy report to Congress on Thursday
These are some of the key moves in financial markets:
S&P 500 rose 1.1% Nasdaq 100 rose 0.7% Nikkei 225 futures rose 1% Australia’s S&P / ASX 200 index futures rose 1.1% Hang Seng futures rose 1.7% previously
The Bloomberg Dollar Spot Index fell 0.4%, the euro remained little changed at $ 1.1877, the Japanese yen remained little changed at 110.16 per dollar, the offshore yuan remained little changed at 6.4818 per dollar
The 10-year Treasury yield rose seven basis points to 1.36%
West Texas Intermediate Crude Oil rose 2.2% to $ 74.56 an ounce, Gold rose 0.3% to $ 1,808.32 an ounce
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