Business & Investment

US stock futures depreciate Asia, yen appreciation against dollar

© Reuters. File Photo: In the outbreak of coronavirus disease (COVID-19), people wearing protective masks electronically display Japanese stock prices outside the Tokyo securities firm in Japan on October 5, 2021. It will be reflected on the board. REUTERS / Kim Kyung-Hoon

Wayne Cole

SYDNEY (Reuters)-Asian stocks fell on Monday as global inflationary instability supported the product as a hedge of US stocks, but rising US bond yields peaked the dollar against the Japanese yen for two and a half years. Raised to

Both Nasdaq futures fell about 0.5% in early trading as crude oil prices expanded bullish.

“Bond yields continue to rise, inflation expectations are rising, and various forms of monetary tightening are becoming more common,” ANZ analysts said.

“The global chip shortage will continue until next year, adding more uncertainty to the uneven recovery,” they said. “With the addition of energy shortages, the economic situation is substantially calmer than the optimism that accompanies the early stages of global recovery.”

MSCI’s widest non-Japanese Asia Pacific equity index relaxed 0.2% and Australia relaxed 0.9%. After dropping 2.5% last week, it lost 0.5%.

The earnings season begins this week and can bring talk of supply turmoil and rising costs. JPMorgan (NYSE :) reported on Wednesday, followed by BofA, Morgan Stanley (NYSE :) and Citigroup (NYSE :) Goldman on Thursday and Friday.

It will also focus on US inflation and retail sales data, as well as the minutes of the previous Federal Reserve Board meeting, which needs to confirm that the November taper was discussed.

The US headline salary on Friday was disappointing, in part due to the resumption of problems in state and local education, while private sector employment was strong.

In fact, as labor shortages reduced the unemployment rate to 4.8%, investors were more concerned about the risk of wage inflation and raised the Treasury yield significantly.

Yields on 10-year bonds traded at 1.61%, up 15 basis points last week, the largest increase since March.

Bonds also sold out in Asia and Europe, with UK short-term yields hitting their highest since February 2020.

BofA analysts warned that the global inflation pulse would be exacerbated by energy costs as oil could exceed $ 100 a barrel in a limited supply and strong resumption demand.

The winners of these scenarios are real assets, real estate, commodities, volatility, cash, and emerging markets, but bonds, credits, and equities are negatively impacted.

BofA recommended commodities as hedges, with notable resources accounting for 20-25% of the UK, Australia and Canada’s major stock indices. 20% in emerging markets. It is 10% in the euro area and only 5% in the United States, China and Japan.

The dollar was supported by US yields surpassing Germany and Japan, rising at 112.27 yen, the highest since April 2019.

The euro remained at $ 1.1566, reaching $ 1.1527 last week, the lowest since July last year. It was held at 94.158, a little off the top of the recent 94.504.

The stronger dollar and higher yields have focused on gold, which does not offer fixed returns, and has leveled off at $ 1,753 per ounce.

Crude oil prices rose 4% last week, hitting a high for almost seven years and then rising again. [O/R]

It rose 25 cents to $ 82.64 and rose 41 cents to $ 79.76 per barrel.

US stock futures depreciate Asia, yen appreciation against dollar US stock futures depreciate Asia, yen appreciation against dollar

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