Stocks Mixed Amid Concerns Over Delta Variant, Tapering Talk

Other markets were set to open lower with S&P 500 futures dipping 0.12%, Euro STOXX 50 futures down 0.01% and FTSE futures off 0.15%.

“Equities have pretty much tracked sideways, but commodities are slightly weak and that’s partly reflecting COVID-19 uncertainty because cases seem to be increasing and background concerns of a slowdown in China,” said TD Securities Asia-Pacific strategist Prashant Newnaha.

In Hong Kong, the Hang Seng Index was 0.78% higher, while the Shanghai Composite traded 0.42% higher, and Japan’s Nikkei was up 0.22%.

Gold prices also recovered, after touching a four-month low on Monday as strong U.S. jobs data bolstered expectations of an early tapering of the Federal Reserve’s economic support measures.

Officials also said inflation was at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.

“That probably weighted on equities slightly,” added Newnaha.

China on Monday reported more COVID-19 infections in what seems to be its most severe resurgence of the disease since mid-2020, as some cities added rounds of mass testing in a bid to stamp out infections.

Australia’s benchmark S&P/ASX200 was 0.32% higher on the back of strong earnings results, despite the nation’s most populous state recording its sharpest daily increase in coronavirus cases.

Oil prices recovered on Tuesday after falling as much as 4% in the previous session, which extended last week’s steep losses amid a rising U.S. dollar and concerns that new coronavirus-related restrictions in China could slow a global revival in fuel demand.

U.S. crude oil futures were trading at $66.98 per barrel, up $0.5 or 0.75%. Brent crude was at $69.37, up $0.33 or 0.48% higher.

The strong jobs data lifted U.S. Treasury yields. Benchmark 10-year notes were last yielding 1.3135%, down slightly after surging from last week’s low of 1.1270%.

“Having swum from a very inflation-better opinion this year to a very disinflation view up to a week or so again, what we are we getting now again is another rotation into some of the reflation trades,” said Sean Darby, a Jefferies strategist in Hong Kong.

“The only thing that is different between now and the last 12 to 19 months is that it is likely to be accompanied by a stronger dollar.”

U.S. stock indexes were mostly soft on Monday, with the Dow Jones Industrial Average closing down 0.3%, the S&P 500 off 0.09% and the Nasdaq Composite adding 0.16%.

MSCI’s gauge of stocks across the globe was 0.02% higher.

In the United States, the Senate came closer to passing a $1 trillion infrastructure package, though it still has to go through the House.

Investors were still assessing whether Friday’s strong U.S. payrolls report would take the Fed a step nearer to winding back its stimulus and were eagerly awaiting inflation figures due on Wednesday.

“What we’re seeing is a little bit of early profit-taking on the back of fear that tapering will come in earlier in September,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. “But as you can see, it has little impact because the effect of a better economy far outweighs the substitution effect of higher interest rates.”

However, the pace of tapering was still up in the air and would decide when an actual rate increase comes, he said. The Fed is currently buying $120 billion of assets a month.

The spread of the Delta variant could argue for a longer taper.

In currency markets, the dollar index moved 0.02% lower, with the euro up 0.01% to $1.1739, near its lowest since early April.

The dollar held firm against the yen at 110.32 yen, near its highest level in about two weeks.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Paulina Duran in Sydney and Matt Scuffham in New York; Editing by Shri Navaratnam and Jacqueline Wong)

Source link

0 0 votes
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.