Asian stocks are likely to rise when trading resumes on Monday, providing some respite from concerns about slowing economic growth and sticky inflation, which continue to cast a long shadow across markets.
Futures pointed higher for shares in Japan and Australia, while the S&P 500 and Nasdaq 100 contracts fluctuated after Wall Street ended Green Friday. US stock and bond markets will remain closed due to the Independence Day holiday.
Treasuries jumped last week after the first half, reflecting rising bets that an imminent recession will limit how much. federal Reserve Rates can be increased to fight inflation. New Zealand and Australian bonds rose in the wake of the US rally.
The dollar gauge was stable, crude was trading near the $108 a barrel and bitcoin was trading below the $20,000 level.
Signs of economic weakness are becoming more apparent in the US and elsewhere in everything from private spending to manufacturing. Investors are particularly concerned about the recession and its effects, rather than focusing exclusively on elevated price pressures.
Chris Weston, head of research at Pepperstone Group, wrote in a note, “The psychology of the market is “fundamentally shifting from inflation concerns to one now where we are focusing on growth.” Now one of the fears It is that the Fed will be too slow to dial back on rate hikes, he said.
In China, Covid cases continued to rise over the weekend, with mass testing and lockdowns another testament to its strategy to eliminate the pathogen.
Separately, Chinese developer Shimao Group Holdings Ltd said it did not pay off the $1 billion dollar note, which matured on Sunday, adding to a record year of offshore-bond delinquency in the sector.
What to watch this week:
- Australia Rate Decision, Tuesday
- PMI for euro area, including China, India, among others, Tuesday
- US Factory Orders, Durable Goods, Tuesday
- FOMC Minutes, US PMI, ISM Services, JOLTS Job Openings, Wednesday
- EIA Crude Oil Inventory Report, Thursday
- Fed Governor Christopher Waller, St. Louis Fed Chairman James Bullard, to speak on Thursday
- ECB account of its June policy meeting, Thursday
- US employment report for June, Friday
Some of the main moves in the markets:
shares
- S&P 500 futures were down 0.1% as of 8:23 am in Tokyo. S&P 500 up 1.1% on Friday
- Nasdaq 100 futures fell 0.1%. Nasdaq 100 up 0.7% on Friday
- Nikkei 225 futures rose 1.7%
- Australia’s S&P/ASX 200 futures rise 1.5%
currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was up 0.2% at $1.0435
- The Japanese yen was at 135.19 per dollar
- The offshore yuan was at 6.7013 per dollar
bond
- Yield on 10-year Treasuries fell 13 basis points to 2.88% on Friday
- Australia’s 10-year yield fell 10 basis points to 3.49%
Goods
- West Texas Intermediate crude was at $108.54 a barrel
- Gold was at $1,810.17 an ounce.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.