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Asian Equities: Asian Equities Retreat, Microsoft’s Vigorous Revenue Boosts Technology Optimism

Tokyo / New York: Wednesday Asian stocks by investors Federal ReserveMonetary Policy Guidance on US High-Tech Equity Futures Microsoft..

European equities are expected to fall slightly, with Eurostocks 50 futures down 0.3% and FTSE futures down 0.4%.

As some investors are more cautious about expanding valuations, MSCI’s Asian non-Japanese equity gauge fell 0.2%, down due to resource stock profit taking.

“The global economy seems to be losing momentum a bit, and there are still no clear signs that COVID-19 infections are slowing even after vaccination has begun. If the share stays within a certain range for some time. I’m expecting it, “said Hisashi. Iwama, Senior Portfolio Manager at Asset Management One.

But even after Microsoft’s revenue rose, the tech sector remained a bright spot. Nasdaq Futures rose 0.5% and Japan’s Nikkei rose 0.3%.

After Azure cloud computing services grew 50%, Microsoft’s share price rose 3.7% in expansion transactions Apple Facebook will announce quarterly results later that day.

“Microsoft’s earnings were excellent compared to strong market expectations,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“The stock prices of these tech companies have been a bit sluggish since August, but given the strong outlook, they are likely to lead the market again,” he said.

At its peak in August, the top five US tech companies, including Amazon and Alphabet, had a market capitalization of 24.6% of the US Outstanding S & P 500 Index. That was 22.7%, well above the 15% two years ago.

S & P500 futures are almost flat, Federal Reserve SystemPolicy meeting and profit taking of circulating stocks after the rise of the star this month.

The S & P 500 is currently trading at 22.7 times the expected return, approaching September’s peak of 23.1 times, the most inflated level since the dot-com bubble in 2000.

The surge in stocks of the private investor-led video game company Gamestop has also raised concerns that rallies driven by massive incentives from governments and central banks have become extreme.

Still, analysts expect the Federal Reserve Board to stick to its dovish tone to help accelerate economic recovery when it concludes its two-day policy meeting on Wednesday.

It is also focused on U.S. stimulus negotiations with U.S. Senate leader Chuck Schumer, with Democrats asking President Joe Biden’s $ 1.9 trillion coronavirus rescue plan without Republican support as needed He said he would proceed.

Benchmark 10-year bonds generated 1.035%, with Biden shrinking on Tuesday and speculation that it could delay ambitious stimulus, hitting a low of 1.028% in three weeks.

The US dollar remained largely unchanged as investors waited for the Fed’s decision to seek clues as to whether to buy higher-risk currencies.

The dollar index flirted at this week’s low of 90.204, while the euro remained strong at $ 1.2161.

Sterling has risen to $ 1.3753. This is the last level seen in May 2018, while the Japanese yen was trading at 103.70 per dollar.

The Australian dollar fell 0.1% to $ 0.7739, indicating a slower response to stronger-than-expected local inflation data.

Crude oil prices are underpinned by economic optimism, with US crude oil futures rising 0.6% to trading at $ 52.95 a barrel.

The· International Monetary Fund As widely expected, we raised our global economic growth forecast in 2021 and many investors expect the global economy to continue to recover from the pandemic recession.

Asian Equities: Asian Equities Retreat, Microsoft’s Vigorous Revenue Boosts Technology Optimism Asian Equities: Asian Equities Retreat, Microsoft’s Vigorous Revenue Boosts Technology Optimism

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