World equities reached another record high and Treasury yields rose after Janet Yellen slowed the rapid US stimulus and coronavirus infections around the world. The dollar rose after Friday’s slide.
US and European futures contracts have progressed after the S&P 500 closed on a record high on Friday. Most Asian stocks climbed. Japan’s Topix index was on track to reach its highest level since 1991 amid a report that officials are considering an early end to the state of emergency in ten Japanese prefectures.
Finance Minister Yellen said on Sunday that the US could return to full service in 2022 if it implements a strong enough relief package. Ten-year treasury yields shrank higher to 1.2%. The rate of US inflation implied by the bond market has risen to its highest level since 2014 as crude oil prices rose.
Investors are comforted by the continued deployment of vaccines and data indicating a declining trend in infections in countries such as the US and Germany. A benchmark of Citigroup Inc. of global risk aversion has dropped to the lowest since the pandemic first hit the market last year.
While the weaker-than-predicted jobs in the US on Friday intensified the fragility of the recovery as the pandemic continued, it also highlighted the issue for further stimulation.
“Risk sentiment is being clarified as expectations of the US stimulus package grow,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. “Although the size of the US package is likely to be reduced, the amount will still be significant to strengthen the US economy.”
Here are some key events:
- The earnings season continues with companies such as Honda Motor, SoftBank Group, Cisco Systems, Commonwealth Bank of Australia, Societe Generale, Commerzbank and L’Oreal.
- The EIA report on crude oil will be presented on Wednesday.
- Sweden will determine monetary policy on Wednesday.
- Jerome Powell, chairman of the Federal Reserve, will speak at a webinar on Wednesday.
- The US consumer price index comes out on Wednesday.
- Moon-New Year public holidays begin in countries in Asia, with China breaking for a week.
- The policy decision of the Bank of Russia comes Friday.
These are the main movements in markets
Stocks
- S&P 500 futures added 0.4% from 14:02 in Tokyo. The benchmark rose 0.4% on Friday.
- Japan’s Topix index rose 1.5%.
- Hong Kong’s Hang Seng Index rose 0.6%.
- South Korea’s Kospi index fell 0.4%.
- Australia’s S & P / ASX 200 index rose 0.8%.
- The Shanghai Composite Index rose 1.1%.
- Euro Stoxx 50 futures gained 0.8%.
Currencies
- The Bloomberg Dollar Spot Index has moved up.
- The yen was at 105.50 per dollar, down 0.1%.
- The foreign yuan was 6.4526 per dollar, up 0.1%.
- The euro bought $ 1.2037, down 0.1%.
Effects
- The yield on 10-year treasury rose to 1.19%.
- The ten-year yield in Australia rose by more than six basis points to 1.26%.
Commodities
- West Texas Intermediate crude rose 1.1% to $ 57.47 a barrel.
- Gold is little changed at $ 1,811.56 per ounce.
– With the help of Sophie Caronello, Joanna Ossinger and Cormac Mullen