Futures fell, while stocks in Asia were volatile in choppy trading on Thursday, as traders weighed downbeat comments on China’s economy by Premier Li Keqiang with Federal Reserve minutes, which hit a less hawkish note. MSCI Inc., a group of Asia-Pacific shares. The gauge fell as technology names weighed on Hong Kong. Like European contracts, S&P 500 and Nasdaq 100 futures declined. Overnight, the S&P 500 and the tech-heavy Nasdaq 100 ended higher.
Chinese stocks remain stable as investors wary of measures to combat the economic malaise. The yuan fell with traders weighing the prospect of monetary easing amid the recession. The economy is in some ways worse than in 2020, when the pandemic first emerged, Premier Lee said, urging efforts to reduce the rising unemployment rate.
“We’ve seen a few false mornings where we’ve heard what sounded like very encouraging words, but so far we haven’t seen a follow-up through the policy space – nothing in the shock and fear category,” chief strategist at BlackRock Investment Institute said. “To give the markets confidence going forward,” Ben Powell said on Bloomberg television.
Treasury yields were stable. Fed policymakers indicated that their aggressive moves could leave them with the flexibility to shift gears later if needed. The dollar went up.
Investors took some rest from Fed minutes, which did not appear to be taking an even more aggressive approach to dealing with higher prices, although central banks remain firm in their resolve to reduce inflation. Still, volatility mounts as the risk of a US recession, impacts from China’s lockdowns and the war in Ukraine boils down.
“If inflation subsides sufficiently over the summer, rates may not continue to rise,” Carol Pepper, chief executive officer of Paper International, said on Bloomberg TV. He said investors should buy tech stocks after the sell-off. “Inflation, I just don’t think that’s going to happen anymore. I think we’re going to be in a position where inflation starts to subside and then we start going to a more normal market.”
Most US policymakers saw an appropriately half-point rate increase over the next two meetings. While he noted the possibility of rates going high enough to disrupt the economy, there were signs of a possible pause – a “rapid” tightening by the Fed later this year to assess the effects of policy tightening and limits. Well positioned for”. For which policy adjustments were necessary for economic development.
The market continued to show pricing to traders, with prices increasing by 100 basis points over the next two sittings.
The Bank of Korea raised its key interest rate on Thursday as newly installed governor Ri Chang-yong demonstrated his intention to tackle inflation at its first policy meeting. New Zealand’s central bank has also shown its commitment this week to deal with rising prices.
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Here are some major events to watch this week:
- US GDP, early jobless claims Thursday
- US Core PCE Price Index; personal income and expenses; bulk goods; University of Michigan Consumer Sentiment Friday
Some of the main moves in the markets:
shares
- S&P 500 futures were down 0.4% as of 7:07 a.m. in London. S&P 500 up 1%
- Nasdaq 100 futures fell 0.7%. Nasdaq 100 up 1.5%
- Topics index was changed slightly
- Australia’s S&P/ASX 200 index drops 0.5%
- Kospi index drops 0.5%
- Hang Seng Index down 1%
- Shanghai Composite Index rose 0.2%
- Euro Stokes 50 futures fell 0.4%
currencies
- Bloomberg Dollar Spot Index up 0.1%
- The Japanese yen was at 127.27 per dollar
- The offshore yuan was down at 6.7634 per dollar. 0.8%
- Euro $1.0676 . was on
bond
- The yield on the 10-year Treasury was 2.73%
- Australia’s 10-year bond yield was down one basis point at 3.23%
Goods
- West Texas Intermediate crude rose 0.4% to $110.76 a barrel
- Gold was down 0.5% at $1,844.64 an ounce
This story has been published without modification in text from a wire agency feed. Only the title has been changed.