The dollar rose on Monday and Asian equities were mixed as traders weighed the implications of higher U.S. Treasury yields, amid the election of President Joe Biden for major fiscal aid to fight the impact of the pandemic.
The dollar climbed a third day against major peers and the future of the treasury was smooth. The Japanese stock market is closed for a holiday and cash Treasury is only trading in London. An Asian share fluctuated as South Korea turned lower after rising 3.6% earlier. S&P 500 futures have fallen.
US equities hit a record high on Friday after Biden said it would submit proposals this week trillions of dollars in fiscal support to combat the economic toll of rising virus cases. Oil declined from last week’s jump and gold fell further.
The stock price stalled at the beginning of the week as investors evaluate protracted valuations, and some signs that global equities could get too hot. Stocks and treasury yields have risen on expectations of a global recovery driven by stimulation and eventual control of the vaccine using vaccines. Higher yields could increase demand for the dollar.
“After being clumsy for a few months, we are definitely becoming more cautious in the stock market at these levels,” Matt Maley, chief market strategist at Miller Tobacco + Co., wrote in a note. He added the ‘dollar is so extreme oversold, hated and too short that it all has to come together soon at some point. ‘
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The Democratic Party under Biden plans to control both houses of Congress as soon as he takes the lead, but agreeing on ambitious spending – such as $ 2,000 stimulus checks – could be another challenge facing the Senate 50-50 with the Republicans will be divided. . Meanwhile, President Donald Trump is entering the final days of his presidency facing a possible indictment after being blamed for inciting the deadly riot at the US Capitol last week.
Biden’s looming policy tasks after its inauguration next week include dealing with growing tensions with Beijing. China’s state-run media have called for retaliation after the Trump administration said the US would do so remove self-imposed curbs on diplomatic interactions with Taiwan. China claims the island as its territory.
On the virus front, Japan said they had found a new strain of the coronavirus similar to the variants in the UK and South Africa. The Asian country said it was difficult to immediately determine how contagious the strain was or the effectiveness of current vaccines against it.
Elsewhere, Bitcoin retreated from Friday’s high of about $ 42,000.
Here are some key events:
These are some of the key movements in markets:
Stocks
- S&P 500 futures have slipped 0.7% in Tokyo since 13:50. The S&P 500 index rose 0.6% on Friday.
- Australia’s S & P / ASX 200 index fell 0.8%.
- South Korea’s Kospi index fell 0.8%.
- The Shanghai Composite Index fell 0.2%.
- Hong Kong’s Hang Seng Index rose 0.9%.
Currencies
- The Bloomberg Dollar Spot Index rose 0.5%.
- The yen fell 0.2% to $ 104.19 per dollar.
- The euro slipped 0.4% to $ 1.2170.
- The pound lost 0.5% to $ 1.3499.
- The foreign yuan fell 0.4% to 6.4873 per dollar.
Effects
- The yield on ten-year treasury rose by four basis points to 1.12% on Friday.
Commodities
- West Texas Intermediate crude fell 0.9% to $ 51.78 a barrel.
- Gold fell 0.9% to $ 1,831.86 an ounce.
– With help by Joanna Ossinger