Stocks rose after Biden’s comments; Dollar Fall: Market Wrapping

The stock has moved ahead after President Joe Biden said China’s tariffs imposed by the Trump administration are under consideration. The dollar and the treasury retreated.

Europe’s Stoxx 600 Index and US equity futures jumped more than 1% after the S&P 500 fell for the seventh week in a row. Asian stocks rose, while Chinese technology stocks declined.

Traders have interpreted Biden’s remarks as a sign that he will discuss US tariffs on Chinese imports with Treasury Secretary Janet Yellen as a signal that he may return from his trip to Asia, as opposed to some of the Trump-imposed measures. He further added that while the US military would intervene to protect Taiwan from any Chinese attack, some of its strongest language still sought to deter Beijing from invading.

Treasuries have plummeted as traders debate the Federal Reserve’s narrow path amid mounting concerns about the economic downturn. Base metals extended their rebound to a five-month low as the weak outlook and a weakening of China’s debt rate strengthened the demand outlook. Bitcoin recovered from weakness over some weekends to trade around $ 30,000.

Equities have been volatile as investors assess the impact of China’s Kovid policy on growth and the outlook for the world’s largest economy. Beijing has reported a record number of Kovid cases, reviving concerns about a lockdown. China’s strict adherence to Kovid Zero has hampered economic growth and last week prompted banks to cut key interest rates for long-term loans by a record amount.

“It seems that during the initial attempt to lift some deep-buying sentiment from Wall Street, the outbreak of the virus in Beijing is limiting the sense of risk in the region in the near future to maintain China’s zero-cue policy,” said Jun Rang Yip, IG Asia’s market strategist. .

Investors have jumped on the bandwagon with concerns over the economic downturn and the prospect of further financial tightening. Ukraine’s war commodity prices are rising and supply chains are being disrupted due to China’s adherence to the Covid Zero policy.

In a note, Luis Doodley, Global Equity, Portfolio Manager, Federated Hermes Limited, said, “We expect the market to remain strong, given the continuing macroeconomic concerns arising from aggressive financial tightening, Russia-Ukraine conflict and China’s tough cowardly lockdown.” .

The minutes of the most recent Fed rate-setting meeting will provide market insights into the US Federal Reserve’s tightening this week. James Bullard, president of the St. Louis Fed, said the central bank should raise an aggressive series of rates to push the rate to 3.5% by the end of the year, which, if successful, would reduce inflation and ease in 2023 or 2024.

Here are some important events to watch this week:

  • Rafael Bostick, president of the Atlanta Fed, and Ether George, president of the Kansas City Fed, spoke at Monday’s event.
  • ECB Governing Council members Robert Holzmann and Joachim Nagel, BOE Governor Andrew Bailey discussed inflation at Monday’s event.
  • Eurozone S&P Global PMIs Tuesday
  • US New Home Sales, S&P Global PMIs Tuesday
  • The Reserve Bank of New Zealand decided the rate on Wednesday
  • FOMC minutes Wednesday
  • The ECB released its financial stability review on Wednesday
  • Bank of Korea rate decision on Thursday
  • US GDP, primary unemployment claims Thursday
  • US original PCE price index; Personal income and expenses; Wholesale inventory; University of Michigan Consumer Feelings Friday

Some of the major rice in the market:

Stock

  • The Stoxx Europe 600 rose 1.2% as of 8:11 a.m. London time
  • The S&P 500 futures rose 1.2%
  • The Nasdaq 100 futures rose 1.3%
  • The Dow Jones Industrial Average futures rose 1.1%
  • The MSCI Asia Pacific Index rose 1.5%
  • The MSCI emerging market index rose 2%

Coin

  • The Bloomberg Dollar Spot Index fell 0.4%
  • The euro rose 0.4% to 0 1.0604
  • The Japanese yen rose 0.1% to 127.71 against the dollar
  • The offshore yuan rose 0.4% to 6.6712 against the dollar
  • The British pound rose 0.7% to 25 1.2567

Bond

  • Yields on the 10-year Treasury rose four basis points to 2.82%
  • Germany’s 10-year yield rose two basis points to 0.97%
  • Britain’s 10-year yield rose four basis points to 1.93%

Merchandise

  • Brent crude rose 0.9% to 3 113.59 a barrel
  • Spot gold rose 0.4% to $ 1853.20 an ounce

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