Photographer: Kiyoshi Ota / Bloomberg
Photographer: Kiyoshi Ota / Bloomberg
Global equities traded around record highs on Friday after a rally in Wall Street over Federal Reserve Board Jerome Powell’s assurance that the central bank could boost the economy without hurting painful inflation.
Concerns about price pressure were evident in China, where the data showed fastest inflation in the factory since 2018. Sliding Chinese stocks weighed on a benchmark in Asia-Pacific. US stock futures contracts climbed, with Nasdaq 100 contracts performing better after the S&P 500 reached an all-time high amid low volumes on US stock markets. European stock futures contracts vary.
Powell’s insurance boosted the treasury, with the standard yield of about two weeks. Treasury 20-year bonds led to greater gains after comments from Fed Executive Vice President New York Lorie Logan spoke about increased central bank purchases at this expiration date. The dollar held losses, jeopardizing its three-week winning streak.
Oil is higher than $ 60 a barrel than Saudi Arabia defended the OPEC + plan to increase production, saying the alliance could change course if necessary.
The Fed’s comments reassure investors about the central bank’s commitment to the policy of the dull that promotes a sustainable recovery from the health crisis. Powell said policymakers will respond if inflation expectations begin to “move steadily and substantially” above acceptable levels. Despite the strength of some indicators, the recovery remains incomplete, as reflected in the latest unexpectedly high US unemployed claims.
“Many investors are concerned about the highs in the stock market, but that does not mean that they cannot rise, and that the economic conditions are definitely set for a positive equity environment,” said Xi Qiao, managing director of UBS Global. Wealth Management, on Bloomberg TV.
The U.S. outlook has improved significantly, but it is at risk from possible setbacks in the world economy, as the explosion of vaccines in many countries has not been nearly as strong, San Francisco President Mary Daly said in a Bloomberg interview. .
More than 704 million shots were fired worldwide, but uncertainty about the risks associated with the AstraZeneca vaccine has slowed the process in some countries. China is among those facing new obstacles, as its attempt to vaccinate 560 million people by the end of June has a shortage of supplies.
These are some of the key movements in markets:
Stocks
- S&P 500 futures rose 0.2% in London. The S&P 500 closed 0.4% higher.
- Nasdaq 100 futures rose 0.4% after the index rose 1%.
- Japan’s Topix index rose 0.6%.
- The Kospi index in South Korea has shaken off 0.1%.
- Australia’s S & P / ASX 200 index was 0.4% lower.
- Hong Kong’s Hang Seng Index lost 0.7%.
- The Chinese Shanghai Composite Index fell 0.7%.
Currencies
- The Bloomberg Dollar Spot Index rose less than 0.1%.
- The euro slipped 0.1% to $ 1.1907.
- The Japanese yen traded at 109.29 per dollar.
Effects
- The yield on 10-year treasury rose a basis point to 1.63%.
- Australia’s 10-year bond yield was around 1.74%.
Commodities
- West Texas Intermediate crude rose 0.2% to $ 59.71.
- Gold was 0.1% lower at about $ 1,753 per ounce.
– With the help of Nancy Moran, Elena Popina, Edward Bolingbroke and Kathleen Hays