Asian stocks were mixed on Tuesday as traders judged the strong economic recovery in the US, the prospect of higher taxes there and restrictions in Europe to curb the coronavirus. Oil reversed some losses.
Shares fell in Japan and China, but performed better in Australia. US equity futures contracts fluctuated as investors rated the setback as a result of the pandemic and the long-term impact of the inflation of Archegos Capital Management. In the past, the S&P 500 reached an all-time high with most of its largest groups. Megacap’s U.S. Internet and technology stocks rose, including an increase by Facebook Inc. to a new high when the Nasdaq 100 rose 2%.
Treasury yields rose lower. Oil rose to more than $ 59 a barrel after slipping amid growing delays in reopening and looming Iranian supply in Europe. Credit Suisse Group AG began more than a week of downloading shares linked to the turmoil of Archegos Capital after some competitors dumped their shares and reduced losses.
U.S. data has continued to highlight an economic increase as more Americans are vaccinated against the coronavirus, restrictions are rolled back and fiscal relief is in place. U.S. service providers saw the fastest growth in March as orders jumped to new highs. According to a report last week, employers in the world’s largest economy added the most jobs in seven months.
At the same time, investors are weighing the impact of the Biden administration’s proposed increase in the corporate tax rate to help fund the spending plan.
“The reopening of trading is back with good reason,” Kim Forrest, founder and chief investment officer of Bokeh Capital Partners, told Bloomberg TV. ‘I think some of that setback could be taken off the table because of taxes in America? Maybe near the end of the growth storm, certainly not at the beginning – which I think is here. ”
A decision opening the door to the adoption of several additional bills this year without any Republican support could bolster the prospects for President Joe Biden’s economic agenda.
Treasury Secretary Janet Yellen reiterates its view that the $ 1.9 billion US pandemic bill signed last month will not cause inflationary pressures, and suggests that low interest rates will continue to apply in the coming years. She too in her first speech on international economic policy set out the case for a harmonized tax rate across the world’s major economies.
Traders are watching virus border strips across Europe as the region continues to struggle with rising infections that threaten to delay economic reopening there. Hong Kong markets are closed for a holiday.
Some important events to watch this week:
- The spring meetings of 2021 of the International Monetary Fund and the World Bank Group are virtually taking place. U.S. Treasury Secretary Janet Yellen is among the participants in a climate discussion on Tuesday. Federal Reserve Chairman Jerome Powell is taking part in a panel on the world economy on Thursday.
- The Fed released minutes of its March meeting on Wednesday.
- Japan announced its balance of payments figures on Thursday.
- China’s consumer and producer price data are available on Friday.
These are some of the key movements in markets:
Stocks
- S&P 500 futures fell 0.1% from 10:55 in Tokyo. The S&P 500 rose 1.4%. Nasdaq 100 futures were flat.
- Japan’s Topix index fell 0.6%.
- Australia’s S & P / ASX 200 index rose 1%.
- South Korea’s Kospi index rose 0.2%.
- The Chinese Shanghai Composite Index lost 0.2%.
Currencies
- The yen is trading at 110.23 per dollar.
- The foreign yuan was 6.5624 per dollar.
- The Bloomberg Dollar Spot Index changed little after falling 0.3%.
- The euro was at $ 1.1810.
Effects
- The yield on 10-year treasury fell to 1.68% on two basis points.
- Australia’s 10-year bond yield fell by five basis points to 1.79%.
Commodities
- West Texas Intermediate Crude Oil rose 1.2% to $ 59.37 a barrel. It tumbled 4.6% in the previous session.
- Gold added 0.3% to $ 1,733.11 per ounce.
– With help from Michael Tobin, Claire Ballentine and Rita Nazareth