S&P 500, Hang Seng, ASX 200 Outlook: Will the Fed Deliver Surprises?
S&P 500, HANG SENG, ASX 200, ASIA-PACIFIC MARKET OUTLOOK:
Markets are holding their breath for the FOMC meeting, with volatility continuing to fall
Asia-Pacific markets may trade with a cautious tone until the FOMC paints a clearer picture
Yields, FOMC, Volatility, Asia-Pacific Stocks Outlook:
US equities finished modestly lower following a disappointing February retails sales figure, which came in at -3.0% MoM compared to a -0.5% forecast. A poorer-than-expected reading was partly attributed to extreme cold weather last month, while January’s reading was revised up to 7.6% from 5.3%. Looking ahead, the impending US$ 1.9 trillion Covid relief bill is likely to revitalize consumer spending in the months to come.
Asia-Pacific equities are poised for a strong opening following a decent rebound in US tech stocks overnight. The US Dollar index retreated alongside the 10-year yield, alleviating pressure on risk.
S & P 500 and Nasdaq Composite retreated for a second day as yields climbed Initial jobless claims data disappointed, denting market sentiment Hang Seng Index (HIS) retreated sharply from a 2.5-year high as mainland investors returned from a holiday break
Wall Street, Yields, Jobless Claims, Crude Oil, Asia-Pacific Stocks Outlook:
Disappointing jobless claims data and a resurgence in US Treasury yields fueled broad profit-taking activity on Wall Street overnight, with the Dow Jones, S & P 500 and Nasdaq Composite falling -0.38%, -0.44% and -0.72% respectively. Weekly jobless claims surged to 861k in the week ending February 13th, higher than the baseline forecast of a 765k increase. Last week s reading was revised up by 55k to 848k. These reflected softer labor market conditions in early February after vaccine rollouts brought the unemployment benefit claims down in January.
Dow Jones, Hang Seng, ASX 200 Outlook: Rising Yields May Weigh on Prices
DOW JONES, HANG SENG, ASX 200, ASIA-PACIFIC MARKET OUTLOOK:
Asia-Pacific markets may trade lower as US equity futures retreated from record highs
Rising Treasury yields and a stronger USD may exert downward pressure on equities, commodities
UK and Canada core inflation, US retail sales figures are in focus today
Yields, US Dollar, Gold, Inflation, Asia-Pacific Stocks Outlook:
US equity futures edged lower on Wednesday morning after major stock benchmarks closed near record highs overnight. Investors are probably trying to strike a balance between reflation hopes and seemingly overstretched valuations, allowing recent rallies to take a brief pause. The S&P 500 index is trading near 32.3 times price-to-earnings, far above its five-year average of 21.2. Rich multiples may render the index vulnerable to profit-taking should rising yields and a stronger US Dollar trigger a technical pullback.
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