Asian stocks were higher on Monday. As the dollar depreciated After the US employment report The eagerly awaited May of the Month shows that the recovery is in good shape. But it’s not so hot that it might weaken the Federal Reserve’s policy.
Investors are curious to see how major tech stocks respond to the G7̵7;s deal for a minimum global corporate tax rate of at least 15%, although getting all of the G20 approval could be a lofty statement. Read more
So far, the reaction has been muted, with both Nasdaq and S&P 500 futures changing little.
An interesting point is A scramble for President Joe Biden’s $1.7 trillion infrastructure plan, with the White House rejecting the latest Republican offer. Read more
MSCI’s widest Asia-Pacific stock index outside Japan. Japan’s Nikkei (.N225) rose 1.0% to hit its highest in nearly a month, and South Korea (.KS11) gained 0.7%.
Although the number of jobs in the United States, an increase of 559,000 times missed forecasts. But it’s still a big relief after a shockingly weak report in April. Meanwhile, an unemployment rate of 5.8% shows there is still a long way to go to achieve the full employment target. Read more
John Briggs, strategist at NatWest Markets, said: “This data is perfect for goldilocks trends for risk. It’s not too hot to cause fears the Fed will shrink faster. And it’s not too cool to worry about the prospect of recovery.”
“This caused the USD to weaken, stocks improved, boosting commodity prices earlier. and stimulate emerging markets”
Now, attention will shift to a number of other high-risk US consumer prices reports on Thursday. The Fed still argues that the increase is temporary.
Briggs suspects Fed officials may open the door to talk about the cuts at the June policy meeting. It will begin in early 2022 and the interest rate hike will not be later than 2024.
The European Central Bank will hold a policy meeting on Thursday and is expected to maintain its stimulus measures with a downward trend.
The yield on the US 10-year note rose to a fraction of 1.567 percent after rising 7 basis points on Friday. and returned to the bottom of the trading session for the past three months.
That decline, combined with increased risk, put the dollar in support. The latest is 90.100 against a basket of currencies. It dropped from a peak of 90.629 on Friday.
The euro held at $1.2170 after rebounding from a three-week low of $1.2102 on Friday. Meanwhile, the dollar returned to 109.52 yen from a high of 110.33.
The dollar’s depreciation helped hold gold at $1,890 an ounce. It rose from a low of $1,855 on Friday.
Oil prices were flat after Brent touched $72 a barrel for the first time since 2019 last week. As OPEC+’s supply discipline and recovering demand have countered concerns about global COVID-19 vaccine rollouts.
Brent was up 6 cents at $71.92 a barrel, while U.S. crude rose 9 cents to $69.71 a barrel.
Our Standard: Thomson Reuters Trust Principles