Most Asian stocks fell on Wednesday amid fears of growth, while government bonds kept their gains on inflation data, signaling the flexibility of the Federal Reserve when to start reducing the stimulus.
Shares withdrew in Japan and Australia, but rose in South Korea. US futures rose. The S&P 500 and Nasdaq 100 dropped overnight. 10-year-bonds remained below 1.3%, reducing the yield gap between the short-term and longer-term US maturities. Bonds in Australia and New Zealand also advanced. The dollar was stable.
Inflation in the United States was lower than forecast in August, supporting the view that pandemic-related price pressures could be temporary, but left the overall argument unresolved. A commodity price manipulator has remained high for about a decade, underscoring the rising costs that are being filtered into the global economy.
In China, investors are expecting economic data that is likely to show the damage caused by the Covid-19 outbreak. Traders are also monitoring Beijing’s regulatory restrictions and China Evergrande Group’s debt problems.
While inflation data can be seen as easing pressure on the Fed to move away from current monetary policy, investors remain concerned about the impact of the delta virus option on economic opening. Fund managers are focused on global growth and profits, but will not give up stocks, according to a recent study by Bank of America.
“At this point, it’s hard to argue that it remains entirely transitional,” Dana D’Auria, chief investment officer of Envestnet Inc., told Bloomberg television, citing US inflation. “You link this to the fact that there are still all these supply shocks that we are still working on. I think the markets will have to feel the pain. “
At the end of the year, investors will also have to reconsider the debate over the US debt ceiling, President Joe Biden’s tax package, infrastructure spending and the Fed’s cuts, she added.
Elsewhere, oil, after a report by the US industry, showed a drop in crude oil and gasoline inventories, signaling a tightening of the market.
Some of the main moves in the markets:
S&P 500 futures rose 0.2%. The S&P 500 fell 0.6%. Nasdaq 100 futures added 0.2%. The Japanese Topix index fell 1%. The Australian S & amp; The P / ASX 200 fell 0.4%. South Korea’s Kospi index rose 0.2%. The Hang Seng Index lost 0.5% earlier.
The Japanese yen traded at 109.67 per dollar, the offshore yuan was at 6.4380 per dollar The Bloomberg Dollar Spot index was slightly changed The euro was slightly changed at 1.1803 dollars
Yields on 10-year government bonds reach 1.29% Yields on 10-year bonds in Australia fell by four basis points to 1.21%
Gold and Oil
West Texas crude was $ 70.89 a barrel, up 0.6 percent. Gold was worth $ 1,803.51 an ounce
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Junior Trader Nikolay Yordanov