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Asia Looks Set for Modest Stock Gains; Dollar Dips: Markets Wrap
(Bloomberg) -- Asian stocks looked set for tentative gains after a volatile U.S. session as investors weighed the chances of a new stimulus package against an uptick in global coronavirus cases. The dollar slipped.Futures in Japan, Hong Kong and Australia pointed to a modest rise. S&P 500 contracts climbed. Earlier, the benchmark pared most of an earlier rally as optimism faded that Congress would reach a spending deal with the White House. Sentiment had pushed shares higher on news that Treasury Secretary Steven Mnuchin and the Democratic House leader were open to fresh talks. But a report that Speaker Nancy Pelosi’s fresh overture deviated only slightly from previous offers sparked concern that the two sides would remain far apart. Treasuries were little changed.Elsewhere, Chinese assets will be in focus Friday after FTSE Russell said the country’s debt would be added to its flagship World Government Bond Index. The offshore yuan ticked higher. Oil dipped.“The odds of Phase 4 stimulus are a close call,” wrote Aneta Markowska, chief economist at Jefferies LLC in New York. “While still possible, there is a high risk that it does not happen this year. Without it, we would expect the economy to hit a major speed bump in Q4.”The risk of a slowdown in the economic recovery has risen with the lack of another stimulus package, prompting Goldman Sachs Group Inc. economists to cut their forecast for U.S. growth in the fourth quarter. Federal Reserve Chairman Jerome Powell reiterated that “it’s likely that additional fiscal support will be needed,” while Fed Bank of St. Louis President James Bullard said the economy may be close to a “full recovery” by year-end.Meanwhile, Europe has reemerged as a hot spot for Covid-19. The U.K. reported the highest number of new cases in a single day since the start of the pandemic, while France’s new infections jumped to a record.Republican lawmakers vowed that the presidential transition after November’s election will occur without disruption, in a rebuke to President Donald Trump’s refusal to commit to a peaceful transfer of power. Democratic presidential nominee Joe Biden’s search for a Treasury secretary is widely seen as focusing on Lael Brainard of the Fed, a choice that would keep both Wall Street and progressives in line.These are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 7:20 a.m. Tokyo time. The S&P 500 advanced 0.3% on Thursday.Futures on Japan’s Nikkei 225 rose 0.4%.Hang Seng futures earlier gained 0.5%.Futures on Australia’s S&P/ASX 200 Index added 0.1%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.1%.The euro bought $1.1672.The yen was little changed at 105.40 per dollar.The offshore yuan was at 6.8243 per dollar.BondsThe yield on 10-year Treasuries remained at 0.67%.CommoditiesWest Texas Intermediate crude slipped 0.2% to $40.25 a barrel.Gold was up 0.1% at $1,870 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-looks-set-modest-stock-214456687.html?.tsrc=rss
(Bloomberg) -- Asian stocks looked set for tentative gains after a volatile U.S. session as investors weighed the chances of a new stimulus package against an uptick in global coronavirus cases. The dollar slipped.Futures in Japan, Hong Kong and Australia pointed to a modest rise. S&P 500 contracts climbed. Earlier, the benchmark pared most of an earlier rally as optimism faded that Congress would reach a spending deal with the White House. Sentiment had pushed shares higher on news that Treasury Secretary Steven Mnuchin and the Democratic House leader were open to fresh talks. But a report that Speaker Nancy Pelosi’s fresh overture deviated only slightly from previous offers sparked concern that the two sides would remain far apart. Treasuries were little changed.Elsewhere, Chinese assets will be in focus Friday after FTSE Russell said the country’s debt would be added to its flagship World Government Bond Index. The offshore yuan ticked higher. Oil dipped.“The odds of Phase 4 stimulus are a close call,” wrote Aneta Markowska, chief economist at Jefferies LLC in New York. “While still possible, there is a high risk that it does not happen this year. Without it, we would expect the economy to hit a major speed bump in Q4.”The risk of a slowdown in the economic recovery has risen with the lack of another stimulus package, prompting Goldman Sachs Group Inc. economists to cut their forecast for U.S. growth in the fourth quarter. Federal Reserve Chairman Jerome Powell reiterated that “it’s likely that additional fiscal support will be needed,” while Fed Bank of St. Louis President James Bullard said the economy may be close to a “full recovery” by year-end.Meanwhile, Europe has reemerged as a hot spot for Covid-19. The U.K. reported the highest number of new cases in a single day since the start of the pandemic, while France’s new infections jumped to a record.Republican lawmakers vowed that the presidential transition after November’s election will occur without disruption, in a rebuke to President Donald Trump’s refusal to commit to a peaceful transfer of power. Democratic presidential nominee Joe Biden’s search for a Treasury secretary is widely seen as focusing on Lael Brainard of the Fed, a choice that would keep both Wall Street and progressives in line.These are some of the main moves in markets:StocksS&P 500 futures rose 0.3% as of 7:20 a.m. Tokyo time. The S&P 500 advanced 0.3% on Thursday.Futures on Japan’s Nikkei 225 rose 0.4%.Hang Seng futures earlier gained 0.5%.Futures on Australia’s S&P/ASX 200 Index added 0.1%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.1%.The euro bought $1.1672.The yen was little changed at 105.40 per dollar.The offshore yuan was at 6.8243 per dollar.BondsThe yield on 10-year Treasuries remained at 0.67%.CommoditiesWest Texas Intermediate crude slipped 0.2% to $40.25 a barrel.Gold was up 0.1% at $1,870 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-looks-set-modest-stock-214456687.html?.tsrc=rss
