Asian stocks remain stable after fall in gold and silver: markets envelop themselves

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(Bloomberg) – Asian stocks stabilized after an early drop in precious metals on Monday as traders bet Friday that strong jobs data would bring the Federal Reserve closer to pulling out the stimulus.

Stocks posted modest gains in Hong Kong and China and fluctuated in South Korea. US futures have plunged and Japanese markets are closed for vacations. In a brief sell-off at the start of trading in Asia, gold hit its lowest level since March before cutting losses. Silver fell to its lowest since November. The prospect of higher rates makes precious metals less attractive compared to other assets. Crude oil extended last week’s decline – its worst since October – over fears the delta virus strain could hamper demand growth.

The dollar was stable. Data on Friday showed that U.S. job growth accelerated in July to the highest in nearly a year and that the unemployment rate fell, illustrating the momentum of a labor market. work struggling with hiring issues.

The 10-year US Treasury yield climbed to around 1.3% on Friday. Treasury bills do not trade in Asia due to the Tokyo holidays. Chinese bond yields rose after inflation data beat expectations.

The U.S. jobs report has raised expectations that the central bank will start cutting stimulus as it battles above-target inflation, even if the delta spreads. Dallas Fed Chairman Robert Kaplan added to the speculation on Friday, saying he would support the buying adjustment soon, but gradually.

US inflation data this week will be a key marker for investors trying to gauge how acute the price pressures are, ahead of the Jackson Hole Symposium later this month.

You are concerned that if the economy grows very, very strongly, it could cause the Fed to tighten or shrink, Shane Oliver, head of investment strategy and chief economist at AMP Capital, on Bloomberg Television. Chances are they will announce this decrease in September and it would start later this year.

The story continues

Traders are also monitoring the progress of the vote on the US $ 550 billion infrastructure package. The bill cleared its final procedural hurdles in the U.S. Senate on Sunday night, putting in place a final adoption vote on Monday.

On the virus front, Anthony Fauci, America’s top infectious disease doctor, said he was strongly in favor of speeding up booster shots for people with weakened immune systems, a further sign of how the delta variant continues to modify strategies to curb the pandemic.

Elsewhere, Chinese tech stocks have remained under pressure amid concerns over Beijing’s crackdown. Didi Global Inc. is considering relinquishing control of its most valuable data as part of efforts to resolve a Chinese regulatory investigation following its controversial U.S. IPO, people familiar with the matter have said.

Bitcoin traded close to $ 43,000 after hitting its highest level since May over the weekend.

Here are some key events to watch out for this week:

Atlanta Fed Chairman Raphael Bostic; Richmond Fed Chairman Tom Barkin; Cleveland Fed President Loretta Mester; Kansas City Fed President Esther George among Fed speakers throughout the week.

For more market analysis, read our MLIV blog.

Here are the main movements in the markets:

Actions

S&P 500 futures slipped 0.2% at 11:33 a.m. in Tokyo. The S&P 500 rose 0.2%. Futures on the Nasdaq 100 fell 0.4%. The Nasdaq 100 fell 0.4% Australian S & P / ASX 200 index rose 0.2% Kospi index remained stable Hang Seng index rose 0.9% Shanghai Composite Index increased by 0.5%

Currencies

The Japanese yen was little changed at 110.29 per dollar. The offshore yuan traded at 6.4806 per dollar, down 0.1%. The Bloomberg Dollar Spot Index rose 0.1%.

Obligations

The 10-year T-bill yield rose seven basis points to 1.30% on Friday The 10-year Australian bond yield rose about three basis points to 1.22%

Merchandise

West Texas Intermediate crude fell 2% to $ 66.90 per barrel Gold fell 1.4% to $ 1,738.67 per ounce

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