TOKYO (Reuters) – Global equities rose to a record high on Wednesday as bond yield eased after data showed U.S. inflation had not risen as strongly as the economy resumed. Again
Most Asia-Pacific stock indexes followed Wall Street higher, with Hong Kong’s profitable Hang Seng leading the region, while US Treasury yields continued to decline, marking the lowest in the round. 3 weeks
S&P 500 futures point to a 0.1% increase.
Japan is likely to drop 0.3 percent as more coronavirus cases raise doubts about an economic recovery in the next 100 days until Tokyo is scheduled to host the Olympic Games.
European stocks are seen to open slightly higher, with Euro Stoxx futures up 0.3% and Britain’s FTSE futures up 0.1%.
The US consumer price index rose 0.6%, the biggest increase since August 2012, as increased vaccination and fiscal stimulus raised retained demand. But the data is unlikely to change Federal Reserve Chairman Jerome Powell’s view that higher inflation in the coming months will be temporary.
Powell is scheduled to speak later at the Economic Club of Washington.
“The market is clearly under pressure for higher CPI readings,” Westpac strategist wrote in a client note.
They said Tuesday’s results were “clearly interpreted within the context of the Fed’s commitment to seeing ‘transient’ inflationary impulse.”
For the bond market, the question is whether the benchmark yield could break 1.6% lower than its 1.611% low on Wednesday.
“That’s an important technical level that, if broken, can see 1.5% movement as quickly as possible.”
The 10-year US Treasury yield jumped from the start of the year to a 14-month high of 1.776% on March 30 on bets that a massive fiscal stimulus would accelerate the U.S. recovery and spur inflation. Faster than Fed policymakers had anticipated and encouraged To raise interest rates faster than expected
But yields have eased this month, in part as a result of the Fed’s insistence that a decline in the labor market will prevent the economy from overheating.
Strong auction results, including the 30-year bond on Tuesday, helped keep the yield on. [US/]
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.8 percent.Hong Kong’s Hang Seng gained 1.4 percent, while China’s blue-chip index gained 0.5 percent.
MSCI’s performance measure in 50 countries was up 0.2%, marking an all-time high renewal.
“Once again, the market is looking bright, and despite the higher-than-expected inflation readings, the market is looking bright again. But it’s been interpreted as a sign of better growth, ”said Michael McCarthy, chief market strategist at CMC Markets.
“We have seen support for those high-tech stocks and other growing sectors of the economy as well as finance.”
The fall in bond yields led to a rise in U.S. technology stocks overnight, which included Apple Inc, Microsoft Corp and Amazon.com Inc, the top three of the global benchmark.
The S&P 500 gained 0.33% as it also set an intraday high and closed a record high, while the Nasdaq Composite gained 1.05% .The Dow Jones Industrial Average was down 0.2%.
Johnson & Johnson shares were down 1.34 percent after the U.S. federal health agency recommended a pause in the release of the COVID-19 vaccine for at least a few days after six women experienced a stroke. Rare ton The defeat to the introduction of vaccination has raised concerns about the global economic recovery.
Revenue will be highlighted on Wednesday, with JPMorgan Chase & Co. and Goldman Sachs Group Inc among the companies reporting.
The US dollar fell with Treasury yields slipping to a three-week low on major trading partners. [FRX/]
Gold, a traditional anti-inflation hedge, has risen from more than a week low to trade at $ 1,742 on the spot market.
Bitcoin hit a record above $ 64,500, expanding its 2021 rally to a new high on the day Coinbase’s shares were on the US list.
In the oil market, Brent crude futures rose 47 cents to $ 64.14 a barrel. U.S. crude oil futures were up 47 cents to $ 60.65.
Reporting by Kevin Buckland; Additional reporting by Herbert Lash; Compiled by Ana Nicolaci da Costa and Kim Coghill.