Shares, rising US futures.  Promoting government returns: Wrapping up purchases

Shares, rising US futures. Promoting government returns: Wrapping up purchases

(Bloomberg) – Shares rose in Asia on Tuesday, futures for US stocks rose and bonds fell amid a more stable investment climate compared to the collapse of global stocks last week.

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Japanese stocks rallied, while Hong Kong and China were more subdued as traders assessed the potential impact of Covid outbreaks in Shenzhen and Macao.

The fall in bonds led the 10-year benchmark yield to 3.30%. Further bond instability, in the wake of the Federal Reserve raising interest rates sharply to curb inflation, could shake global markets again.

Australia’s yields offset the rise – central bank governor Philip Lowe reiterated that further rate hikes were possible, but pushed expectations for a 75 basis point move in July.

The dollar fell and the yen fluctuated near the 24-year low, falling from the opposition between the super-Dobank Bank of Japan and the hawk Fed.

In commodities, oil has risen, while prices for metals such as copper have been hit by concerns about demand prospects amid weakening global growth.

“There may be a rumor that we have bottomed out, we are oversold, the Fed is taking inflation seriously and that may be slightly up in the interim,” Frances Stacy, Optimal Capital’s director of strategy, told Bloomberg TV.

However, investors are still facing a bad long-term outlook. St. Louis Fed Chairman James Boulard has warned that US inflation expectations could be “dampened without credible action by the Fed,” while former Treasury Secretary Lawrence Summers said the country’s unemployment rate should rise above 5% for a fixed period in order to reduce the price. pressures.

Earlier, European Central Bank President Christine Lagarde reiterated officials’ intention to raise interest rates in July and September, signaling that concerns over financial market tensions were not derailing the fight against inflation.

Elsewhere, Bitcoin retained more than $ 20,000 after a turbulent period for cryptocurrencies.

What to watch this week:

  • RBA minutes, Governor Philip Lowe is expected to speak on Tuesday

  • Fed Chairman Jerome Powell’s semi-annual report to the Senate on Wednesday

  • Bank of Japan minutes April, Wednesday

  • Powell deposition of the US House of Representatives, Thursday

  • Initial US unemployment claims, Thursday

  • PMI for Eurozone, France, Germany, United Kingdom, Australia, Thursday

  • ECB Financial Bulletin, Thursday

  • The consumer sentiment of the University of Michigan, USA, Friday

  • RBA’s Lowe speaks to the panel Friday

Some of the main movements in the markets:

inventories

  • S&P 500 futures rose 1.4% at 10:58 a.m. in Tokyo

  • Nasdaq 100 futures increased 1.4%

  • Japan’s Topix index rose 1.7%

  • Australia S & P / ASX 200 Index Added 1.2%

  • South Korea’s Kospi index rose 0.3%

  • Hang Seng index added 0.8%

  • Shanghai Composite Index rose 0.3%

  • Euro Stoxx 50 futures contracts were stable

currency

  • Bloomberg Dollar Spot Index fell 0.1%

  • The euro was at $ 1.0536, up 0.2%

  • The Japanese yen was at 135.05 yen per dollar

  • Offshore yuan was at 6.6753 per dollar, up 0.2%

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Goods

  • West Texas Intermediate crude oil rose 1.8% to $ 111.55 a barrel

  • Gold fell slightly to $ 1,840.55 an ounce

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