(Bloomberg) – Asian stocks and US equity futures edged higher on Friday, with traders assessing the resilience of the global recovery against the prospect of a reduction in Federal Reserve stimulus and downside risks. China.
Shares advanced in Japan and Hong Kong, where tech stocks rose for the first time this week. Chinese stocks were mixed amid the China Evergrande group debt crisis and a short-term cash injection by the central bank to help ease nerves. Miners have undermined Australian stocks after falling iron ore prices.
The S&P 500, Nasdaq 100 and European futures were in the green. US stocks closed mostly lower after swinging between gains and losses ahead of the quarterly expiration of options and futures on Friday, which can trigger volatility.
Yields on Treasuries and the dollar remained higher after the surprise strength of retail sales in the United States, easing economic worries over delta tension and highlighting the case for a less broad support from the Fed. Unemployment claims have risen, likely reflecting volatility in weekly data as the labor market generally rallies.
Global stocks are on track for a second weekly decline, held back by the impact of the delta virus variant on the economic reopening, the implications of high inflation and the turmoil in China. The Fed’s policy meeting next week is a possible source of volatility as traders wait for more clues on the timetable to cut bond purchases and possibly raise interest rates.
“Investors should just be prepared for the fact that returns are much more likely to be reduced over the next five years than what we have actually enjoyed and enjoyed over the past five,” said Jim McDonald, chief strategist. Northern Trust Bank investments, Bloomberg Television. This view incorporates the prospect of lower valuations for Chinese companies facing greater government involvement, he said.
Oil has remained stable, as the string of iron ore losses threatens to push futures contracts below $ 100 a tonne as China struggles to curb its steel industry. Advanced gold. A commodity price index has fallen but remains in sight of a record high in 2011, underscoring inflationary concerns spilling over into the global economy.
Meanwhile, the European Central Bank has dismissed the accuracy of a Financial Times report on the eurozone interest rate outlook. Bund futures had fallen on the article, which indicated that the ECB could meet its 2% inflation target by 2025 based on unpublished internal models that foreshadowed rate hikes earlier than planned.
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
S&P 500 futures rose 0.1% at 6:45 am in London. The S&P 500 fell 0.2%. Futures on the Nasdaq 100 advanced 0.1%. Nasdaq 100 rose 0.1% Japan’s Topix index added 0.3% Australian S & P / ASX 200 index lost 0.8% South Korea’s Kospi rose 0.2% China’s Shanghai Composite index fell 0.4% Hong Kong’s Hang Seng index added 0.3% Euro Stoxx 50 futures rose 0.6%
Bloomberg Dollar Spot Index was stable Euro was at $ 1.1769 Offshore yuan was at 6.4477 per dollar Japanese yen was at 109.87 per dollar, down 0.1%
The yield on 10-year Treasuries held at 1.34% The yield on 10-year Australian bonds rose four basis points to 1.31%
West Texas Intermediate crude was at $ 72.37 per barrel, down 0.3% Gold was at $ 1,761.54 per ounce, up 0.4%
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