Global Market Analysis
Global Market Analysis – Treasury bonds climb while Asian stocks stop their rise in international markets
A record-high global stocks rebound slowed on Thursday ahead of Fed Chairman Jerome Powell’s speech on the monetary policy framework. US Treasury bonds rose.
Shares in Japan, South Korea, and Hong Kong fell, while Asian stocks followed a mixed course. Australia performed well while the China Stock Exchange recorded a limited rise. US share futures fell, European futures did not change much. The rise in technology stocks brought the S&P 500 Index and the Nasdaq Composite Index to new records for the fourth consecutive day in previous transactions.
Oil remained near the five-month high, ahead of the expected damage from hurricane Laura, which is expected to arrive ashore on Thursday. Trading yuan outside of China has been trading at its highest level since January due to tight liquidity signals. The dollar did not change much. Australian bonds rose with new quantitative purchases.
Traders will be watching closely at Thursday’s Jackson Hole conference, where Powell will speak. Investors are also watching the developments regarding the coronavirus vaccine. Governments and central banks around the world continue to support economies. Durable goods orders in the US more than doubled expectations, showing that mills will support the economic recovery in the coming months.
“Markets are focused on Fed Chairman Powell’s speech in anticipation of a rise. The speech is expected to be very market-friendly,” said chief global markets strategist Stephen Innes of AxiCorp
- S&P 500 Index futures fell 0.1 percent at 13:45 Tokyo time. The underlying index rose 1 percent on Wednesday.
- In Hong Kong, the Hang Seng Index fell 0.6 percent.
- In Japan, the Topix Index fell 0.5 percent.
- The Shanghai Composite Index rose 0.3 percent.
- In South Korea, the Kospi Index fell 0.9 percent.
- In Australia, the S & P / asx 200 Index rose 0.4 percent.
- Euro Stoxx 50 futures declined less than 0.1 percent.
- The Bloomberg Dollar Spot Index has not changed much.
- The yen traded at 105.94 against the dollar.
- Offshore yuan found buyers at 6.8777.
- Euro / Dollar parity remained stable at 1.1834.
- In the US, the yield on year-term Treasury bonds fell to 0.68 percent.
- 10-year yields in Australia fell 4 basis points to 0.91 percent.
- WTI oil didn’t change much at $ 43.35 a barrel.
- Gold fell 0.5 percent to $ 1,945.98 an ounce.