Asian stocks were mixed on Tuesday, with traders assessing the strengthening of the US economic recovery, the prospect of higher taxes there and restrictions in Europe to contain the coronavirus. Oil recovered some losses.
Shares fell in Japan and China, but outperformed Australia. US stock futures fluctuated as investors assessed the recovery from the pandemic and any remaining impact from the Archegos Capital Management explosion. Previously, the S&P 500 reached a historic record with most of its major groups moving forward. The US Internet and technology megacap shares have soared, including a rise from Facebook Inc. to a new peak, with the Nasdaq 100 up 2%.
Treasury yields have fallen. Oil rose above $ 59 a barrel after falling amid increasing delays in Europe’s reopening and imminent Iranian supplies. Credit Suisse Group AG began to unload shares linked to Archegos Capital’s turmoil more than a week after some rivals divested their shares and circumvented the losses.
US data continued to highlight an economic recovery as more Americans are vaccinated against the coronavirus, restrictions are reversed and fiscal relief begins to take hold. US service providers experienced the fastest growth ever recorded in March, as orders jumped to new highs. A report from last week showed that employers in the world’s largest economy were the ones who created the most jobs in seven months.
At the same time, investors are assessing the impact of the Biden government’s proposed increase in the corporate tax rate to help finance its spending plan.
“The reopening of the business is back for good reason,” Kim Forrest, founder and chief investment officer at Bokeh Capital Partners, told Bloomberg TV. “Do I think that part of that recovery can be taken off the table because of taxes in America? Perhaps towards the end of this growth spurt, certainly not at the beginning – which I think is where we are here. “
A decision this opens the door to passing a number of additional bills this year, without any Republican backing, could increase prospects for President Joe Biden’s economic agenda.
Secretary of the Treasury Janet Yellen reiterated its view that the $ 1.9 trillion pandemic relief bill signed last month will not increase inflationary pressures and suggested that low interest rates will continue to prevail in the years to come. Her too exposed the case for a harmonized corporate tax rate in the world’s major economies in his first major speech on international economic policy.
Traders are controlling the eye virus across Europe, while the region continues to fight the rise in infections that threaten to delay the local economic reopening. Hong Kong markets are closed for the holiday.
Some important events to watch this week:
- The 2021 Spring Meetings of the International Monetary Fund and the World Bank Group take place virtually. U.S. Treasury Secretary Janet Yellen is among the participants in a climate discussion on Tuesday. Federal Reserve Chairman Jerome Powell participates in a panel on the global economy on Thursday.
- The Fed publishes the minutes of its March meeting on Wednesday.
- Japan released its balance of payments figures on Thursday.
- Chinese consumer and producer price data are released on Friday.
These are some of the main movements in the markets:
Stocks
- S&P 500 futures fell 0.1% from 10.55 am in Tokyo. The S&P 500 was up 1.4%. Nasdaq 100 futures remained stable.
- Japan’s Topix index fell 0.6%.
- Australia’s S & P / ASX 200 index rose 1%.
- South Korea’s Kospi index fell 0.2%.
- China’s Shanghai Composite index lost 0.2%.
Coins
- The yen was trading at 110.23 per dollar.
- The offshore yuan was 6.5624 per dollar.
- The Bloomberg Dollar Spot Index changed little after falling 0.3%.
- The euro was at $ 1.1810.
Titles
- Yield on 10-year Treasury bonds fell two basis points to 1.68%.
- Yield on Australia’s 10-year bonds fell five basis points to 1.79%.
Commodities
- West Texas Intermediate crude rose 1.2% to $ 59.37 a barrel. It fell 4.6% in the previous session.
- Gold added 0.3% to $ 1,733.11 an ounce.
– With the help of Michael Tobin, Claire Ballentine and Rita Nazareth