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(Sept 1): Asian stocks looked poised to pull back at the start of a new month after most US stocks pulled back despite tech stocks extending their gains.
Futures pointed to modest losses in Japan, Australia and Hong Kong. S&P 500 futures fell. The S&P 500 Index declined, still posting a fifth consecutive monthly advance in August. The dollar weakened against its peers in the Group of 10, with a fifth consecutive monthly decline. Treasuries advanced and 10-year yields fell to just over 0.70%.
The Dow Jones Industrial Average led losses after its components were revamped, with Microsoft Corp. and Walmart Inc. falling on concerns that China could block a potential sale of the video app TikTok. Apple Inc.’s rise when shares were divided 4-for-1 raised the Nasdaq 100 to more than 12,000 for the first time.
With global equities rising 6% in August and 10-year Treasury yields nearly 20 basis points higher, traders have been betting on the global economy rebounding from virus shutdowns and continued gains in technological actions. Still, with infections in the United States on the rise again and India becoming the global epicenter for new cases, the pandemic is far from over and investors will be searching for data this week for clues about the outlook.
“The rally may continue, but it won’t be a softer tick,” Nela Richardson, senior investment strategist at Edward D Jones & Co., told Bloomberg TV. “If you think about what is driving this rally, there are actually three crucial things: one is optimism about a vaccine; the second is lower for longer interest rates and the third is a faster than normal payback in terms of earnings. This is where the markets could be a bit bullish. “
Elsewhere, oil opened higher. Silver earned, beating gold.
Here are some key events to watch this week:
The Reserve Bank of Australia broadcasts its policy decision on Tuesday.
ISM manufacturing data will be released on Tuesday in the US, Australia’s GDP will be released on Wednesday.
U.S. jobless claims for the week ending August 29 are due Thursday.
Friday’s U.S. jobs report is forecast to show payrolls continued to rebound in August from virus lows.
These are the main market movements:
Stocks
S&P 500 futures were down 0.1% at 7:09 am in Tokyo. The S&P 500 Index fell 0.2%.
Nikkei 225 futures fell 0.3% in Singapore
Australia’s S & P / ASX 200 Index futures fell 1%.
Hong Kong Hang Seng Index futures fell 0.4%.
Coins
The yen was trading at 105.89 per dollar after weakening 0.5%.
The Bloomberg Dollar Spot Index fell less than 0.1%.
The offshore yuan stood at 6.8493 to the dollar.
The euro settled at $ 1.1940, after hitting a two-year high.
Captivity
The 10-year Treasury yield fell more than one basis point to 0.70%.
Raw Materials
West Texas Intermediate crude rose 0.7% to $ 42.89 a barrel.
Gold was US $ 1,968.41 an ounce.
Silver strengthened 2.3% to $ 28.14 an ounce.
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