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Stocks, futures stable; China Tech Rebound Stops: Markets Wrap

(Bloomberg) – Asian stocks were stable on Wednesday as a rebound in Chinese technology stocks stalled and traders weighed the resilience of the economic recovery against the fast-spreading strain of the Delta virus. The dollar climbed higher.

A Hong Kong unit of Chinese tech companies struggled to extend this week’s rally amid ongoing concerns over Beijing’s crackdown on private industry. MSCI Inc.’s broader Asia Pacific Index posted modest gains. US and European futures fluctuated amid the all-time highs of the S&P 500 and Nasdaq 100.

The yield on 10-year US Treasuries rose. The House of Representatives passed a $ 3.5 trillion budget resolution overnight that drives President Joe Biden’s plans for significant spending. China’s 10-year bond yields plummeted due to a short-term injection of liquidity from the central bank.

In commodities, oil declined after its biggest two-day gain since November, with Covid-19 still overshadowing sentiment on the demand outlook.

Corporate earnings, the expansion of vaccinations and support from monetary policy have partially corrected sentiment after a fit of nervousness about the economic outlook due to the Delta Tribe. The next key reading on the central bank outlook is due later this week when Federal Reserve Chairman Jerome Powell speaks at the Jackson Hole Symposium.

“If you look at how investors are positioned, they are all very optimistic,” said Simon Doyle, Schroders’ Head of Fixed Income and Multi Asset, in a webinar. “The market is expensive and investors are all confident, which is a little to worry about.”

The tensions between the US and China are back in focus. Securities and Exchange Commission chairman Gary Gensler promised to enforce a three-year period for US-listed Chinese companies to allow their financial audits to be inspected or to face delisting.

Meanwhile, a group of Wall Street veterans and senior Chinese officials try to resume talks as business leaders outside the Biden government work for better access to the world’s most populous country.

The story goes on

Here are some events to watch this week:

Fundamental decision of the Bank of Korea; Briefing by Governor Lee Ju-yeol ThursdayFed officials attend Jackson Hole Economic Policy Symposium Thursday through Saturday GDP, Initial Jobless Claims Thursday-July US Personal Income and Spending Data on Friday. Investors will closely examine the consumer spending price index, a measure of inflation that the Fed is closely monitoring.

For more market analysis, check out our MLIV blog.

Some of the key moves in the markets:

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S&P 500 futures were stable as of 7:02 a.m. in London. The S&P 500 rose 0.2%. Nasdaq 100 futures were little changed. The Nasdaq 100 rose 0.3%, Japan’s Topix index rose 0.1%, Australia’s S & P / ASX 200 index rose 0.3%

Currencies

The Japanese yen stood at 109.70 a dollar, the offshore yuan traded at 6.4753 a dollar, the Bloomberg Dollar Spot Index rose 0.1% and the euro stood at $ 1.1742

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10 year government bond yield was 1.29% Australia 10 year government bond yield was 1.16%

raw materials

West Texas Intermediate Crude Oil was $ 67.42 a barrel, down 0.2% gold was $ 1,795.25 an ounce, down 0.4%

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