Asian stocks remain open after mixed US data
(June 2): Asian stocks look set for a stable open on Wednesday after US stocks edged down as the battle between economic optimism and inflation fears continues to play out in the markets. Treasury yields edged up.
Futures rose slightly in Japan and Australia, but fell in Hong Kong. The S&P 500 and Nasdaq 100 closed with small losses after US manufacturing data beat estimates, but also signaled supply shortages and labor constraints. US equity contracts slipped.
Oil has peaked more than two years, with the OPEC + alliance predicting a tightening of the global crude market and a nuclear deal with Iran still pending.
The dollar was stable at the start of Asian trading. The pound fell to a new all-time low against the greenback after Turkish President Recep Tayyip Erdogan renewed his calls for lower interest rates. The offshore yuan was little changed amid pressure from the People’s Bank of China to temper its appreciation.
Global stocks are looking for new catalysts as they soar at record highs. Concerns persist that the recovery from the pandemic will fuel inflation and cause central banks to reduce their political support sooner than expected. Traders await key US wage data on Friday for guidance on the outlook.
“Investors would see an increase in payroll growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments.
Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy as the US economy grows as millions of people are unemployed.
Here are the key events to watch this week:
Philadelphia Fed Chairman Patrick Harker, Chicago Fed Chairman Charles Evans, Atlanta Fed Chairman Raphael Bostic and Dallas Fed Chairman Robert Kaplan speak Wednesday
US Employment Report for May Friday
Here are some of the main movements in the markets:
S&P 500 futures slipped 0.1%. The index fell by less than 0.1%
Nasdaq 100 contracts fell 0.1%. The gauge fell by 0.2%
Nikkei 225 futures rose 0.1%
S & P / ASX 200 index futures contract rose 0.2%
Hang Seng index futures fell 0.2%
The Japanese yen was little changed at 109.47 per dollar
The offshore yuan was trading at 6.3830 to the dollar
Bloomberg Dollar Spot Index Remained Stable
The euro was little changed at US $ 1.2213
The yield on 10-year Treasuries rose 1 basis point to 1.61%
West Texas Intermediate crude rose 0.2% to US $ 67.87 a barrel
Gold was at US $ 1,898.75 an ounce