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Bonds Slide After Powell; Asia Stock Futures Mixed: Markets Wrap
(Bloomberg) -- Treasury yields jumped after Jerome Powell said the Federal Reserve will remain accommodative and shift to a more relaxed approach on inflation, while U.S. stocks eked out modest gains. Asian equity futures were mixed, and the dollar climbed from a two-year low.Futures rose in Japan and were little changed in Australia and Hong Kong. S&P 500 contracts opened flat after the gauge earlier reached an all-time high for a fifth day and the Nasdaq Composite also set a record before closing in the red. The yield premium demanded by investors on long-maturity U.S. debt compared to short-term notes increased to the most in two months after Powell said the Fed will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots.Elsewhere, crude oil declined as Hurricane Laura weakened while crossing over land in the refinery and LNG-rich Gulf of Mexico region. Gold retreated for the fourth time in five sessions.Global stocks are heading for a fifth week of gains as technology shares continue to push higher and investors monitor progress on vaccine developments for the pandemic. Meantime, reports showed that U.S. weekly jobless claims remained above 1 million and the economy contracted slightly less than forecast in the second quarter.“Powell was hugely dovish,” said Peter Boockvar, chief investment officer for Bleakley Financial Group. “Then bonds woke up, said this guy wants higher inflation, sell!”Here are some key events coming up:The U.S. Republican National Convention continues.U.S. personal spending and the PCE Deflator data are due Friday.Here are the main market moves:StocksS&P 500 futures added 0.1% as of 7:17 a.m. in Tokyo. The index rose 0.2% Thursday.Futures on Japan’s Nikkei 225 advanced 0.3% earlier.Hang Seng futures were little changed.Futures on Australia’s S&P/ASX 200 Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%.The yen was at 106.55 per dollar.The offshore yuan traded at 6.8864 per dollar.The euro bought $1.1820.BondsThe yield on 10-year Treasuries rose six basis points to 0.75%.CommoditiesWest Texas Intermediate crude fell 0.2% to $42.94 a barrel.Gold was at $1,930.69 after sliding 1.3%.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/bonds-slide-powell-asia-stock-214139772.html?.tsrc=rss
(Bloomberg) -- Treasury yields jumped after Jerome Powell said the Federal Reserve will remain accommodative and shift to a more relaxed approach on inflation, while U.S. stocks eked out modest gains. Asian equity futures were mixed, and the dollar climbed from a two-year low.Futures rose in Japan and were little changed in Australia and Hong Kong. S&P 500 contracts opened flat after the gauge earlier reached an all-time high for a fifth day and the Nasdaq Composite also set a record before closing in the red. The yield premium demanded by investors on long-maturity U.S. debt compared to short-term notes increased to the most in two months after Powell said the Fed will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots.Elsewhere, crude oil declined as Hurricane Laura weakened while crossing over land in the refinery and LNG-rich Gulf of Mexico region. Gold retreated for the fourth time in five sessions.Global stocks are heading for a fifth week of gains as technology shares continue to push higher and investors monitor progress on vaccine developments for the pandemic. Meantime, reports showed that U.S. weekly jobless claims remained above 1 million and the economy contracted slightly less than forecast in the second quarter.“Powell was hugely dovish,” said Peter Boockvar, chief investment officer for Bleakley Financial Group. “Then bonds woke up, said this guy wants higher inflation, sell!”Here are some key events coming up:The U.S. Republican National Convention continues.U.S. personal spending and the PCE Deflator data are due Friday.Here are the main market moves:StocksS&P 500 futures added 0.1% as of 7:17 a.m. in Tokyo. The index rose 0.2% Thursday.Futures on Japan’s Nikkei 225 advanced 0.3% earlier.Hang Seng futures were little changed.Futures on Australia’s S&P/ASX 200 Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%.The yen was at 106.55 per dollar.The offshore yuan traded at 6.8864 per dollar.The euro bought $1.1820.BondsThe yield on 10-year Treasuries rose six basis points to 0.75%.CommoditiesWest Texas Intermediate crude fell 0.2% to $42.94 a barrel.Gold was at $1,930.69 after sliding 1.3%.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/bonds-slide-powell-asia-stock-214139772.html?.tsrc=rss
