Asian stocks look set for a mixed on Wednesday as American equities drop off near a record over key inflation data. The 10 year yield of the U.S. Treasury dropped to a one-month low.
Futures slipped in Australia and Hong Kong, but legged higher in Japan. The S&P 500 finished little changed just shy of its May 7 record - fastening. A stock slide after the market breakout on Monday offset gains in biotech stocks in oil and technology stocks. Earlier contracts were steady on the U.S. equity market.
The emphasis remains on Thursday's report on U.S. consumer prices, which is likely to affect perceptions that when the Federal Reserve is starting discussing easing of asset purchases. The dollar advanced for the first time in three days.
Oil resumed its rally to hit $70 a barrel in New York as investors grow more confident that the recovery from the pandemic will help demand. After a recent retreat, Bitcoin remains under pressure and was trading around $33,500 next week.
The debate over whether inflation will be more aggressive and urge central banks to curb stimulus sooner than expected remains key for investors. While volatility has been evident in the global fringe, such as meme and cryptocurrencies shares, global stocks are near an all-time high and Treasury yields have eased for three successive weeks. The overall picture suggests that investors will believe in the Fed’s assurances that price pressures will prove transitory.
The tight trading ranges that have been seen so far this month reflect the cautious mood in the market for inflation numbers,' said Fiona Cincotta, senior analyst at City Index. While the Fed reassures that this spike in inflation is temporary, policy makers will need to be up in their tracks to calm the market.
Here are some key events to watch this week:
Organizers of the seven top leaders host their annual Worldwide Developers Conference on June 11. European Central Bank decision on Thursday and press conference with President Christine Lagarde The Vienna nuclear deal talks start on Friday in Cornwall, England.
These are some of the main moves in markets:
The Nasdaq 100 Index was little changedThe Nikkei 225 Futures fell 0.2% Australia's S&P ASX 200 Index Futures rose 0.1% Hang Seng Index Futures rose 0.1%
The offshore yen was at $109.50 per dollar The Japanese currency was at $696 per dollar Euro EUR was traded at $1.2173
The yield on 10-year notes ’ was down to 1.53% from four basis points.
West Texas Intermediate crude rose 1.2% to $70.05 a barrelGold was at $1,893. 07 an ounce
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