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Asia Stocks Head for Cautious Start After Fed: Markets Wrap
(Bloomberg) -- Asian stocks headed for a cautious start Thursday after Federal Reserve Chairman Jerome Powell highlighted the uncertainty for an economic rebound without further stimulus, and tech shares retreated in the U.S.Futures were flat in Japan while those in Hong Kong and Australia slipped. The S&P 500 Index earlier erased gains to end the session lower after Powell said he’s not sure if the faster-than-expected recovery will continue. A tumble in tech behemoths such as Apple Inc. and Facebook Inc. also dragged down the gauge.The Treasury yield curve steepened as Powell stopped short of offering new specifics on the Fed’s approach to the monthly bond purchases that have buttressed markets. Some traders may have been expecting signals regarding plans to target longer maturities. The dollar was little changed.Fed officials have stressed in recent weeks that the U.S. recovery is highly dependent on the nation’s ability to better control the coronavirus, and that further fiscal stimulus is likely needed to support jobs and incomes. “The recovery has progressed more quickly than generally expected,” Powell said, while cautioning that “the path ahead remains highly uncertain.” It was the Federal Open Market Committee’s final scheduled meeting before the U.S. presidential election on Nov. 3.“The fact that he’s highlighting the negative potential economic consequences of a lack of Congressional action on fiscal stimulus definitely served to unnerve investors,” said Alec Young, chief investment officer at Tactical Alpha LLC, referring to Powell.The White House strongly signaled Wednesday that it is willing to increase its offer in talks with Democrats, and that Senate Republicans should go along in order to seal a stimulus deal in the next week to 10 days.Elsewhere, oil surged after government data showed shrinking U.S. crude stockpiles.These are some of the main moves in markets:StocksThe S&P 500 Index fell 0.5% on Wednesday.Futures on Japan’s Nikkei 225 were little changed.Hang Seng futures lost 0.2%.Futures on Australia’s S&P/ASX 200 Index fell 0.2%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.1%.The euro bought $1.1817.The yen was at 104.97 per dollar.The offshore yuan traded at 6.7476 per dollar.BondsThe yield on 10-year Treasuries gained two basis points to 0.70%.CommoditiesWest Texas Intermediate crude jumped 5% to $40.18 a barrel.Gold was at $1,959.20 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-stocks-head-cautious-start-214137941.html?.tsrc=rss
(Bloomberg) -- Asian stocks headed for a cautious start Thursday after Federal Reserve Chairman Jerome Powell highlighted the uncertainty for an economic rebound without further stimulus, and tech shares retreated in the U.S.Futures were flat in Japan while those in Hong Kong and Australia slipped. The S&P 500 Index earlier erased gains to end the session lower after Powell said he’s not sure if the faster-than-expected recovery will continue. A tumble in tech behemoths such as Apple Inc. and Facebook Inc. also dragged down the gauge.The Treasury yield curve steepened as Powell stopped short of offering new specifics on the Fed’s approach to the monthly bond purchases that have buttressed markets. Some traders may have been expecting signals regarding plans to target longer maturities. The dollar was little changed.Fed officials have stressed in recent weeks that the U.S. recovery is highly dependent on the nation’s ability to better control the coronavirus, and that further fiscal stimulus is likely needed to support jobs and incomes. “The recovery has progressed more quickly than generally expected,” Powell said, while cautioning that “the path ahead remains highly uncertain.” It was the Federal Open Market Committee’s final scheduled meeting before the U.S. presidential election on Nov. 3.“The fact that he’s highlighting the negative potential economic consequences of a lack of Congressional action on fiscal stimulus definitely served to unnerve investors,” said Alec Young, chief investment officer at Tactical Alpha LLC, referring to Powell.The White House strongly signaled Wednesday that it is willing to increase its offer in talks with Democrats, and that Senate Republicans should go along in order to seal a stimulus deal in the next week to 10 days.Elsewhere, oil surged after government data showed shrinking U.S. crude stockpiles.These are some of the main moves in markets:StocksThe S&P 500 Index fell 0.5% on Wednesday.Futures on Japan’s Nikkei 225 were little changed.Hang Seng futures lost 0.2%.Futures on Australia’s S&P/ASX 200 Index fell 0.2%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.1%.The euro bought $1.1817.The yen was at 104.97 per dollar.The offshore yuan traded at 6.7476 per dollar.BondsThe yield on 10-year Treasuries gained two basis points to 0.70%.CommoditiesWest Texas Intermediate crude jumped 5% to $40.18 a barrel.Gold was at $1,959.20 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-stocks-head-cautious-start-214137941.html?.tsrc=rss
