Global equities reached another record and Treasury yields soared after Janet Yellen pushed for rapid stimulus in the U.S. and coronavirus infections declined worldwide. The dollar stabilized after Friday’s decline.
American and European futures advanced after the S&P 500 closed at a record high on Friday. Most Asian stocks have gone up. Japan’s Topix index jumped the most in more than two months to close at its highest level since 1991 amid reports that the government may lift the state of emergency earlier for some areas.
Treasury Secretary Yellen said in Sunday’s interview that the US could return to full employment in 2022 if it passes a robust enough aid package. Ten-year Treasury yields rose to 1.2%. The pace of the USA the implicit inflation in the bond market reached its highest level since 2014, with the rise in crude oil prices. Brent crude rose above $ 60 a barrel for the first time in a year.
Investors are comforting themselves with the continued release of vaccines and data that suggest a decreasing trend of infections in countries like the USA and Germany. An indicator of Citigroup Inc.’s global risk aversion has fallen to its lowest level since the pandemic began to cloud markets last year.
While the weaker-than-expected job data on Friday reinforced the fragility of the recovery as the pandemic continues, they also highlighted the case for new stimuli.
“Risk sentiment has improved as expectations about the US stimulus package are growing,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. “Although the scale of the US package is likely to be reduced , the amount will still be substantial to boost the US economy. “
Shaun Roache, chief economist for Asia Pacific at S&P Global Ratings, discusses the outlook for the region’s economies in the midst of the coronavirus pandemic.
Here are some important events to come:
- The earnings season continues with companies like Honda Motor, SoftBank Group, Cisco Systems, Commonwealth Bank of Australia, Societe Generale, Commerzbank and L’Oreal.
- The EIA crude oil inventory report arrives on Wednesday.
- Sweden will set monetary policy on Wednesday.
- Federal Reserve Chairman Jerome Powell will speak at a webinar on Wednesday.
- The US consumer price index arrives Wednesday.
- Lunar New Year holidays begin in Asian countries, with China interrupting for a week.
- The Bank of Russia’s policy decision arrives Friday.
These are the main changes in the markets
Stocks
- S&P 500 futures increased 0.4% from 6am in London. The indicator rose 0.4% on Friday.
- Japan’s Topix index increased 1.8%.
- The Hong Kong Hang Seng index advanced 0.3%.
- South Korea’s Kospi index fell 0.6%.
- Australia’s S & P / ASX 200 index rose 0.6%.
- The Shanghai Composite Index rose 0.9%.
- Euro Stoxx 50 futures gained 0.7%.
Coins
- The Bloomberg Dollar Spot Index has gone up.
- The yen was at 105.50 per dollar, down 0.1%.
- The offshore yuan was 6.4504 per dollar, up 0.1%.
- The euro bought $ 1.2038, down 0.1%.
Titles
- Yield on 10-year Treasury bonds increased to 1.18%.
- Australia’s 10-year yield advanced more than seven basis points to 1.27%.
Commodities
- West Texas Intermediate crude gained 1% to $ 57.42 a barrel.
- Gold has barely changed at $ 1,813.64 an ounce.
– With the help of Sophie Caronello, Joanna Ossinger and Cormac Mullen