(Bloomberg) – Stocks and crude oil rose on Tuesday, while the dollar fell on positive sentiment following China’s rollback of Covid isolation measures and the cooling of a key inflation measure in the United States.
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Chinese, Japanese and South Korean stocks opened higher and futures contracts for US stocks rose about 0.7%. Oil was supported by the demand outlook in China and as freezing weather in the US prompted refinery closures.
The offshore yuan edged up slightly overnight and the Thai baht rose on China’s announcement that it would lift quarantines on inbound travelers early next month. A measure of the dollar’s strength declined.
US Treasury yields fell as it resumed trading after last week’s benchmark 10-year rate rose by the most since early April. On Tuesday it was around 3.73%.
Investors took encouragement from Friday’s data, which showed the Federal Reserve’s closely watched measurement of slowing inflation and stagnation in consumer spending. Still, price pressures from the tight labor market remain a concern for the Fed and a challenge for bets that interest rates will be cut next year.
Stock markets in Hong Kong and Australia remain closed on Tuesday.
Important events this week:
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US Wholesale Inventories, Tuesday
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BOJ summary of comments from the 19-20 December, Wednesday
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US initial jobless claims, Thursday
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ECB publishes economic report, Thursday
Some of the key movements in the markets:
stocks
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S&P 500 futures were up 0.7% as of 10:35 a.m. Tokyo time
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Nasdaq 100 futures up 0.8%
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Euro Stoxx 50 futures up 0.7%
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Japan Topix Index up 0.6%
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South Korea’s Kospi index rose 0.6%
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The Shanghai Composite rose 0.3%
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currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro was little changed at $1.0645
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The Japanese yen fell 0.2% to 133.10 per dollar
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The offshore yuan was little changed at 6.9716 per dollar
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The Australian dollar rose 0.2% to $0.6741
cryptocurrencies
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Bitcoin rose 0.2% to $16,864.99
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Ether was up 0.5% to $1,223.4
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raw materials
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West Texas Intermediate crude was up 1% to $80.33 a barrel
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Spot gold rose 0.2% to $1,801.16 an ounce
This story was created with the support of Bloomberg Automation.
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