Asia Stocks Eye Mixed Open; Yields, Dollar Jumped: Markets Wrap

Asia Stocks Eye Mixed Open; Yields, Dollar Jumped: Markets Wrap
  • Oops!
    Something went wrong.
    Please try again later.
Andreea Papuc
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- Asian stocks looked set for a mixed start Tuesday after Treasury yields and the dollar jumped as Jerome Powell’s renomination to head the Federal Reserve fueled bets on quicker policy tightening.

Most Read from Bloomberg

Australian equities rose and futures for Hong Kong fell. Japan is closed for a holiday. U.S. futures nudged higher after the S&P 500 ended in the red and the Nasdaq 100 underperformed after a final-hour selloff in technology shares in the Wall Street session.

Treasuries slid, with markets pricing in a full quarter-point rate hike into the June Fed meeting and seeing a good chance of a second by September and a third by December to fight inflation. Cash Treasuries won’t trade in Asia due to the Japan holiday.

Powell and the other Fed chief candidate, Governor Lael Brainard, were seen as having broadly similar policy stances but Brainard was viewed by some as more dovish.

The dollar advanced to the highest since September 2020, bullion held a slump and Bitcoin steadied after a tumble. Oil retreated as traders weigh speculation that OPEC and its allies may scale back a supply boost if the U.S. and other nations tap reserves to curb prices.

President Joe Biden opted for continuity at the Fed, selecting Powell for a second term as chair and elevating Brainard to vice chair. They face the challenge of curbing intense price pressures while nurturing the recovery from the pandemic and averting financial-market dislocations.

“While investors no longer have to wonder about who will be leading the Federal Reserve for the next few years, the next big dilemma the central bank faces is how to normalize monetary policy without upsetting markets.,” Robert Schein, chief investment officer at Blanke Schein Wealth Management, wrote in an email.

Aside from the Fed, China’s outlook is also vexing markets. The country’s marked economic slowdown is testing the policy mettle if its central bank. An index of Chinese stocks listed in the U.S. retreated overnight.

For more market analysis, read our MLIV blog.

Here are some key events this week:

  • Eurozone, U.S. PMI data Tuesday

  • Reserve Bank of New Zealand rate decision Wednesday

  • U.S. FOMC minutes, consumer income, wholesale inventories, new home sales, GDP, initial jobless claims, U.S. durable goods, University of Michigan consumer sentiment. All Wednesday

  • Bank of Korea policy decision Thursday

  • U.S. Thanksgiving Day: U.S. equity, bond markets closed Thursday

  • Bank of England Governor Andrew Bailey speaks with Mohamed El Erian at a Cambridge Union event. Thursday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.1% as of 8:21 a.m. in Tokyo. The S&P 500 fell 0.3%

  • Nasdaq 100 futures added 0.2%. The Nasdaq 100 dropped 1.2%

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

  • Hang Seng Index futures fell 0.6% earlier

Currencies

  • The Japanese yen was at 114.86 per dollar

  • The offshore yuan was at 6.3900 per dollar

  • The Bloomberg Dollar Spot Index rose 0.5%

  • The euro was at $1.1239

Bonds

  • The yield on 10-year Treasuries advanced eight basis points to 1.62% on Monday

  • Australia’s 10-year bond yield rose eight basis points to 1.87%

Commodities

  • West Texas Intermediate crude fell 0.5% to $76.39 a barrel

  • Gold was at $1,808.83 an ounce, up 0.2%

Most Read from Bloomberg Businessweek

©2021 Bloomberg L.P.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting

Recommended Stories

  • Wall Street Breathes Sigh of Relief as Powell Gets Second Fed Term

    (Bloomberg) -- Wall Street will head into the Thanksgiving holiday with one less worry after President Joe Biden decided to nominate Jerome Powell for a second four-year term as Federal Reserve chair.Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO Is Determined to Shake Up Japanese FinanceBiden

  • U.S. Stocks Sink Into Close on Rout in Tech Shares: Markets Wrap

    (Bloomberg) -- A final-hour selloff in tech shares sent U.S. stocks to a second straight loss, while Treasuries retreated following President Joe Biden’s nomination of Jerome Powell to head the Federal Reserve for a second term. The dollar climbed.Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO

  • Fed’s Powell, Brainard Stress U.S. Inflation Battle Is Priority

    (Bloomberg) -- Federal Reserve Chair Jerome Powell pledged to “use our tools” to aid jobs and battle fast-rising consumer prices as President Joe Biden chose him to lead the U.S. central bank for another four years and elevated Governor Lael Brainard to be vice chair.Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMave

  • SHAREHOLDER ACTION NOTICE: The Schall Law Firm Reminds Investors of a Class Action Lawsuit Against TMC the metals company Inc. f/k/a Sustainable Opportunities Acquisition Corp. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm

    Los Angeles, California--(Newsfile Corp. - November 22, 2021) - The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against TMC the metals company Inc. f/k/a Sustainable Opportunities Acquisition Corp. ("TMC" or "the Company") (NASDAQ: TMC) (NASDAQ: TMCWW) (NYSE: SOAC) (NYSE: SOAC.U) (NYSE: SOACWS) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and

  • Urban Outfitters Stock Hit as Supply Chain Woes Slow Store Comps

    But digital sales growth and new stores helped push the company up overall in the third quarter.

  • Virgin Atlantic Sees Strong Christmas, But Summer Tough to Call

    (Bloomberg) -- Virgin Atlantic Airways Ltd. Chief Executive Officer Shai Weiss said the U.K. carrier is set for a bumper Thanksgiving and Christmas but can’t predict how strong demand will be next summer.Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO Is Determined to Shake Up Japanese FinanceF

  • Consumer spending: There's a 'disconnect' between 'what people are doing and what people are saying'

    Bankrate Senior Industry Analyst Ted Rossman details what he's seeing ahead of the holiday season and how consumer seem to be spending despite polls showing many are worried about rising costs.

  • Biden, first lady celebrate Friendsgiving with service members and their families

    President Biden and first lady Jill Biden travel to Fort Bragg, N.C., to celebrate Friendsgiving with members of the military and their families.

  • U.S. high-yield corporate bond ETF falls to 8-month low after Powell announcement

    Investors looked to shed some risk in the U.S. corporate bond market on Monday, pushing a fund tracking the high-yield sector to its lowest level since March after Jerome Powell's nomination for a second term as Federal Reserve chair raised expectations of sooner rate hikes. Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research in New York, said there was some shifting out of risk assets as U.S. Treasury yields rose with the two-year yield, which typically moves in step with interest rate expectations, topping 0.59%, its highest level since early March 2020. "If the market is correct that the Fed is going to tighten a couple of times next year, then financial conditions are going to get tighter and some of the lower-quality companies in the high-yield market are going to have a tough time," Jones said.

  • Biden Dodges Senate Showdown Risk With Powell-Brainard Picks

    (Bloomberg) -- President Joe Biden’s picks of Jerome Powell and Lael Brainard as chair and vice chair of the Federal Reserve help him avoid a contentious Senate confirmation battle heading into a midterm election year in which inflation looms as a major issue. Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70

  • Bitcoin Could Be in Your Bond, Stock, and Commodity Funds. What to Know.

    If crypto is a new asset class, how do you define it? Some see it as a gold-like hedge, others as a call option on the development of a crypto market, and yet others are looking to juice up moribund portfolios. And then there’s FOMO.

  • Greg Valliere on Fed chair pick: President Biden 'has been wounded by inflation'

    AGF Investments Chief U.S. Policy Strategist Greg Valliere joins Yahoo Finance to discuss President Biden's choice to renominate Fed Chair Jerome Powell, inflation, the economy, and more.

  • Pokemon Go creator Niantic valued at $9 billion after Coatue's investment

    The company, spun off from Alphabet Inc's Google in 2015 and led by former Google executive John Hanke, plans to used the funds to expand its recently launched Lightship platform to help developers with their AR creations and build their visions for "the Real-World Metaverse". "Niantic is building a platform for AR based on a 3D map of the world that we believe will play a critical role in the next transition in computing," said Matt Mazzeo, a general partner at Coatue.

  • U.S. Capitol riot 'QAnon Shaman' lawyers wrangle the week after sentencing

    Lawyers for U.S. Capitol rioter nicknamed the "QAnon Shaman" bickered on Monday over who will now represent him, a week after he was sentenced to more than three years in prison for his role in the deadly Jan. 6 attack. John Pierce, a Los Angeles-based attorney who represents about 25 Jan. 6 defendants, said he and Honolulu-based lawyer William Shipley have taken over as lawyers for Jacob Chansley, well-known for the horned headdress he wore while in the Capitol. Their claim was immediately disputed by Chansley's original attorney, Albert Watkins, who represented the 34-year-old through his guilty plea and sentencing https://www.reuters.com/world/us/us-seeks-four-years-prison-capitol-rioter-qanon-shaman-2021-11-17 to 41 months in federal prison.

  • Oil Rises as OPEC+ May Adjust Supply in Wake of Reserves Release

    (Bloomberg) -- Oil advanced amid speculation that OPEC and its allies may not add as much supply to the market as previously planned if the U.S. releases crude reserves in coordination with other nations. Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO Is Determined to Shake Up Japanese Finance

  • Solana Outshines Bitcoin, Which Slumps Despite El Salvador’s Plans for ‘Bitcoin City’

    El Salvador announces plans over the weekend to build the world's first 'Bitcoin City' funded by bitcoin-backed bonds.

  • Bond Traders on Rocky Path Prepare to Face Auctions

    (Bloomberg) -- No one would choose to sell bonds under these conditions -- which may make for a rocky holiday-shortened week in the U.S. Treasury market.Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO Is Determined to Shake Up Japanese FinanceIn order to complete the monthly cycle of two-, five

  • Top Tech Stocks for December 2021

    The technology sector is composed of businesses that sell goods and services in electronics, software, computers, artificial intelligence (AI), and other industries related to information technology (IT). The sector includes companies with the largest market capitalizations in the world, such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN). Tech stocks, represented by the Technology Select Sector SPDR Fund (XLK), have outperformed the broader market over the past year.

  • Fed Bets Could Move Even More If Decision Lets Powell Cut Loose

    (Bloomberg) -- The simple fact that the Federal Reserve chair nomination is now out of the way may allow the central bank to turn slightly more hawkish, potentially adding further fuel to front-end rate bets. Most Read from BloombergNew York City Is Building a Wall of Oysters to Fend Off FloodsA Denser City, But at What Cost?The Women Behind Historic House DesignsFrom Bathhouses to Fisheries, Hidden Inflation Is Creeping Across JapanMaverick 70-Year-Old CEO Is Determined to Shake Up Japanese Fin

  • President Biden Taps Jerome Powell To Stay At Fed Helm; S&P 500, Nasdaq Reverse Lower

    President Biden tapped Fed chief Jerome Powell for a second term, a safe choice as an upsurge in inflation creates a political backlash.