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Stocks Will Extend Rally In Asia; Dollar firmer: Markets Wrap

(Bloomberg) – Asian stocks are likely to rise on Tuesday, supported by a rally in Japan and expectations that central bank support for reopening after the pandemic will be scaled back very gradually.

Futures for Japan rose about 1% after the Topix index’s 31-year high. The contracts for Australia and Hong Kong also increased. European stocks rebounded, pushing a global equities meter to a new all-time high. The S&P 500 and Nasdaq 100 futures rose ahead of US markets resuming after a holiday.

Oil extended losses amid Saudi Arabia’s price cut for Asian buyers and threats to demand from the Delta Virus variant outbreak. Bitcoin topped $ 52,000, with El Salvador planning more purchases after purchasing 200 coins before introducing the cryptocurrency as legal tender on Tuesday.

In China, traders will monitor trade data for clues about the economic situation. Australia will re-examine the question of whether to postpone a planned expansion of bond purchases as lockdowns undermine the country’s recovery.

Global stocks have so far weathered concerns that the Delta Tribe is slowing post-pandemic reopening and exacerbating supply shortages that fuel inflation. A weak US labor market report has strengthened the view that the Federal Reserve will delay removing the stimulus that has helped the markets.

“The Delta – and possibly other – variant (s) continue to be of concern as the disease spreads rapidly in unvaccinated communities and the effectiveness of the 2021 vaccine year is questioned,” said Chris Iggo, chief investment officer of Core Investments AXA Investment Managers, wrote in a note. “I don’t think this will negate the recovery and growth prospects, but there may be some ‘air holes’ in the data and in investor sentiment.”

The economists at Goldman Sachs Group Inc. revised their forecast for US expansion downwards this year, in part because the delta variant is depressing consumer spending. The death toll from Covid-19 is rising in the world’s largest economy, showing vaccination gaps.

The story goes on

Aluminum supplier Norsk Hydro ASA jumped to a 13-year high in Oslo. Aluminum reached its highest level in over a decade when political unrest in Guinea raised concerns about the supply of the raw material needed to make the metal.

What to see this week:

US President Joe Biden is likely to make his decision this week on whether to rename Fed chief Jerome Powell for a second term legal tender, Tuesday, as Fed President Robert Kaplan holds a virtual discussion in town hall Wednesday, ECB President Christine Lagarde holds a press conference the bank’s interest rate decision on Thursday

You can find more market analysis on our MLIV blog.

Some of the key moves in the markets:

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S&P 500 futures rose 0.1% at 7:53 a.m. in Tokyo. Nasdaq 100 Futures Up 0.3% The Stoxx Europe 600 Up 0.7% Nikkei 225 Futures Up 1.1% Australia’s S&P / ASX 200 Index Futures Up 0.2% Hang Seng Index Futures gained 0.2%

Currencies

The Japanese yen was trading at 109.84 per dollar, the offshore yuan was trading at 6.4492 per dollar, the Bloomberg Dollar Spot Index remained stable, and the euro was trading at $ 1.1872

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Australian ten-year bond yield rose 1 basis point to 1.27%

raw materials

West Texas Intermediate crude oil fell 0.8% to $ 68.76 a barrel spot gold was at $ 1,822.83 an ounce

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