Business & Investment

Asian stocks set for soft start, dollar almost stable

New York: Asian stocks were under pressure on Tuesday as concerns over US stimulus and a surge in coronavirus infection led to a mixed session on Wall Street, but the dollar rose overnight.

Unstable trade reflected concerns about deadly new strains of the virus, as well as uncertainty about the $ 1.9 trillion US fiscal stimulus package that hit Congress against Republican opposition.

These factors eased previous optimism stimulated by the deployment of vaccines and the expectation that new US stimulus would have a coveted financial blow to the global economy.

Jarod Kerr, chief economist at Kiwi Bank in Wellington, New Zealand, said stocks were taking a break after the bullish move last week, but sentiment remains bright.

“Risk appetite has clearly improved,” Kerr said. “Central banks and governments need to step into accelerators.”

S & P 500 E-mini futures were flat in the early days of Asia. The Nikkei Stock Average in Japan fell 0.4% and the Nikkei Stock Average in New Zealand fell 0.5%. The Australian dollar was up 0.04% against the $ 0.771 dollar. The Australian stock market has been closed due to national holidays.

Fourth-quarter GDP data for the United States, Germany and France, released this week, could cool sentiment. US policymakers are expected to keep the financial spigot open when the Federal Reserve Board of Governance’s Federal Open Market Committee meets on Tuesday and Wednesday.

Wall Street shares were mixed on Monday and the Nasdaq Index rose 0.69%, hitting a record high in bumper earnings expectations from megacap tech companies later this week. The S & P 500 rose 0.36%, while the Dow Jones Industrial Average fell 0.12%.

Previously, European stocks closed for the first time in two weeks as a downturn in German business morals highlighted the damage caused by the tightening of regulations on COVID-19.

The Pan-Europe STOXX600 Index reversed its initial rise and fell 0.8%. Germany’s DAX fell 1.7%, France’s CAC 40 fell 1.6%, and the UK’s FTSE 100 fell 0.8%.

The· MSCI The World Equity Index, which tracks equities in 49 countries, rose 0.2%.

All eyes are in Washington, as U.S. lawmakers have agreed that Americans should be given a COVID-19 vaccine, despite whistling beyond the size of the pandemic relief package. Was directed to.

Financial markets are looking at large packages, but disagreements are suffering from more than 175,000 COVID-19 cases per day and months in a country where millions are unemployed. It means making a decision.

“The immediate question is when and how much stimulus aid will be approved,” asked Christopher Grisanti, chief equity strategist at MAI Capital Management.

The dollar has risen to nearly a week’s high against a basket of currencies as global equity market volatility has weakened investors’ desire for more risky currencies.

The dollar index, which tracks the dollar index against a basket of six currencies, rose 0.12 points or 0.1% to 90.358. The euro finally fell 0.3% to $ 1.2140.



Asian stocks set for soft start, dollar almost stable

https://economictimes.indiatimes.com/markets/stocks/news/asian-stocks-set-for-soft-start-dollar-mostly-steady/articleshow/80460268.cms Asian stocks set for soft start, dollar almost stable

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