Business & Investment

Asian stocks: Asian stocks hesitate as oil hits a three-year high

Sydney: Asian stocks got off to a cautious start on Monday as inflation concerns rose as prices soared to their highest in three years and the recent hawkish conversion by some major central banks worsened.

Oil has been pushed above its July peak as global production turmoil has been forced. Energy company Pull a lot crude oil Due to the lack of natural gas in Europe, costs have risen across the continent.

Brent rose another 62 cents to $ 78.71 a barrel on Monday, and US crude rose 71 cents to $ 74.69.

Analysts said: Goldman Sachs In the client note.

“The current global oil supply and demand deficit is larger than expected, and the recovery of global demand from the effects of the Delta is even faster than the above consensus forecast,” he said.

Such a rise could raise speculation that global inflation will last longer than initially expected, accelerate the end of ultra-cheap money, and support reflationary trading in banks and energy stocks while lowering bond prices. ..

MSCI’s widest non-Japanese Asia-Pacific stock index was flat after losing for the third straight week.

Japan’s Nikkei Stock Average rose 0.4% in anticipation of further fiscal stimulus after the election of the new prime minister.

Nasdaq futures rose 0.1% and S & P 500 futures rose 0.3%.

The fate of the China Evergrande Group remains largely unknown after a real estate giant missed offshore bond payments last week, with more payments scheduled this week.

Hong Kong stocks are under the most pressure, but the Beijing government has added more liquidity to the financial system.

“China’s policy makers are hoping to allow the real estate sector to unleverage their debt to reduce moral hazard, but they will actively manage restructuring and financial spillover,” said a JP Morgan analyst. I am confident that it will effectively limit the effect. ”

While also paying attention to US fiscal policy with the House of Representatives to vote on the $ 1 trillion infrastructure bill this week, the September 30 deadline for funding federal agencies is the second partial government in three years. You may be forced to shut down.

This week is packed with speeches from the Federal Reserve Board of Governors, led by Chair Jerome Powell, on Tuesdays and Wednesdays, with more than 12 other events on the calendar.

Recent hawkish shifts by the US central bank, and some others in the world, have seen bond yields rise sharply before the end of last week.

The 10-year Treasury has hit 1.46%, the highest since early July, in talks that reflationary trading could resume as the world prepares for the end of ultra-cheap money.

Higher yields have supported the US dollar, especially against emerging market currencies competing with the Treasury for global funds.

Against a basket of currencies, the dollar was strong at 93.292, just below its August 10-month high of 93.734.

It made some rationale for the yen to reach the main chart barrier at 110.79. The break will take the currency to areas that have not been visited since early July.

The euro stabilized at $ 1.1719 as investors pondered the influence of the German government led by the centre-left Social Democratic Party after a slight victory in Sunday’s elections.

For the first time since 2005, the Social Democratic Party has claimed a “clear mission” to lead the government, ending 16 years of conservative-led governance under Angela Merkel’s administration.

“The possibility of a political shift to the left suggests that Germany’s fiscal stance may have less negative impact on the economy than currently expected in the coming years,” said a CBA analyst. Stated. “This will ultimately benefit the euro.”

The dollar’s appreciation weighs heavily on gold, fixed at $ 1,748 per ounce, just above the six-week low of $ 1,738.

Asian stocks: Asian stocks hesitate as oil hits a three-year high Asian stocks: Asian stocks hesitate as oil hits a three-year high

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