Stocks stabilize as China source mood; Dollar Dips: Markets Rap

(Bloomberg) – Asian stocks traded mixed on Monday as investors assessed the impact of the growth of China’s Kovid policy and the outlook for the world’s largest economy. The dollar and the treasury retreated.

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Equities in Japan have risen modestly, but a slide in Chinese technology stocks and a virus outbreak in Beijing have weighed on Hong Kong and China. The Nasdaq 100 and S&P 500 futures jumped about 1% while the S&P 500 fell for the seventh consecutive week due to weakness not seen since 2001.

Beijing has reported a record number of Kovid cases, reviving concerns about a lockdown. China’s tough Covid Zero policy has stifled economic growth and last week prompted banks to cut key interest rates for long-term loans by a record amount.

One dollar gauge has declined. The Australian dollar has rallied after a clear election result over the weekend, knocking out the Labor Liberal-National Coalition. Treasuries slowed Friday’s progress as traders debated the Federal Reserve’s tough path amid mounting concerns about the economic downturn. Bitcoin recovered from weakness over some weekends to trade around $ 30,000.

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Investors have jumped on the bandwagon with concerns over the economic downturn and the prospect of further financial tightening. Ukraine’s war commodity prices are rising and supply chains are being disrupted due to China’s adherence to the Covid Zero policy.

In a note, Luis Doodley, Global Equity, Portfolio Manager, Federated Hermes Limited, said, “We expect the market to remain strong, given the continuing macroeconomic concerns arising from aggressive financial tightening, Russia-Ukraine conflict and China’s tough cowardly lockdown.” .

The minutes of the most recent Fed rate-setting meeting will provide market insights into the US Federal Reserve’s tightening this week. James Bullard, president of the St. Louis Fed, said the central bank should raise an aggressive series of rates to push the rate to 3.5% by the end of the year, which, if successful, would reduce inflation and ease in 2023 or 2024.

Here are some important events to watch this week:

  • Rafael Bostick, president of the Atlanta Fed, and Ether George, president of the Kansas City Fed, spoke at Monday’s event.

  • ECB Governing Council members Robert Holzmann and Joachim Nagel, BOE Governor Andrew Bailey discussed inflation at Monday’s event.

  • Eurozone S&P Global PMIs Tuesday

  • US New Home Sales, S&P Global PMIs Tuesday

  • The Reserve Bank of New Zealand decided the rate on Wednesday

  • FOMC minutes Wednesday

  • The ECB released its financial stability review on Wednesday

  • Bank of Korea rate decision on Thursday

  • US GDP, primary unemployment claims Thursday

  • US original PCE price index; Personal income and expenses; Wholesale inventory; University of Michigan Consumer Feelings Friday

Some of the major rice in the market:

Stock

  • The S&P 500 futures rose 1% in Tokyo by 10:37 a.m. The S&P 500 changed slightly on Friday.

  • Nasdaq 100 futures are up 1.3%. The Nasdaq 100 is down 0.3%.

  • The Topix index rose 0.8%

  • Australia’s S&P / ASX 200 index rose 0.4%

  • The Kospi index rose 0.1%

  • The Hang Seng Index fell 0.7%

  • The Shanghai Composite Index fell 0.1%

  • Eurostocks 50 futures rose 1.1%

Coin

  • The Bloomberg Dollar Spot Index fell 0.3%

  • The Japanese yen rose 0.3% to 127.50 against the dollar

  • Offshore yuan was 6.6929 per dollar, up 0.1%

  • The euro rose 0.2% to 0 1.0579

Bond

Merchandise

  • West Texas Intermediate rose 0.7% to $ 110.03 a barrel

  • Gold was priced at $ 1,851.94 per ounce

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