(Bloomberg) – Stocks rose in Japan and Australia in thin trading with most Asian markets closed, while US stock futures were flat as investors awaited news of an offer to buy First Republic Bank.
Article content
(Bloomberg) – Stocks rose in Japan and Australia in thin trading with most Asian markets closed, while US stock futures were flat as investors awaited news of an offer to buy First Republic Bank.
Advertising 2
Article content
Stocks rose in Japan and Australia while Hang Seng futures also rose, despite Hong Kong being closed for trading, along with China, Singapore and several countries in Europe to celebrate the May 1 holiday.
Article content
The muted moves in US futures followed a 0.8% jump for the S&P 500 on Friday, capping two straight weekly gains for the first time in a month. The benchmark also recorded consecutive monthly gains for the first time in five months. The CBOE Volatility Index fell below 16 for the first time since November 2021 as strong corporate earnings boosted sentiment.
But the future of First Republic Bank weighed heavily on the markets. Regulators worked through Sunday evening in Washington after asking a group of banks including JPMorgan Chase & Co. and PNC Financial Services Group Inc. Bidding for the beleaguered lender.
Article content
Advertising 3
Article content
Treasurys retreated slightly after Friday’s rally. The Australian 10-year note was flat and the New Zealand one was higher. The yen weakened while the Australian dollar and the Australian dollar strengthened. The sudden drop in bitcoin has sent the cryptocurrency below $30,000 after a stellar run this year.
Interest rate decisions will be in focus this week. The Fed is expected to increase borrowing costs by 25 basis points to a range of 5% to 5.25%, a level not seen since 2007. The European Central Bank is also expected to raise key lending rates by 25 basis points. The Reserve Bank of Australia is expected to keep interest rates unchanged when it meets on Tuesday.
“Earnings season shows that market demand, which is a major driver of inflation, is still very strong,” Hebei Chen, an analyst at IG Markets, said in an interview with Bloomberg TV. The Fed should also reduce the chances of lower interest rates later this year, “potentially putting an end to unrealistic expectations for a rate cut,” she said.
Advertising 4
Article content
Leading by Apple Inc. Another earnings-packed week, including Advanced Micro Devices Inc. and Ford Motor Co. In Asia, banks including HSBC Holdings Plc and Macquarie Group Ltd. its earnings reports. In Europe, Volkswagen AG and energy giants BP plc and Shell plc are on the agenda.
Elsewhere, oil prices fell and gold plummeted.
Here are some of the major moves in the markets:
Stores
- S&P 500 futures were little changed as of 11:37 a.m. Tokyo time. The S&P 500 rose 0.8% on Friday
- Nasdaq 100 futures have changed little. The Nasdaq 100 rose 0.7% on Friday
- Hang Seng Index futures rose 1%.
- Japan’s Topix rose 0.6%.
- Australia’s S&P/ASX 200 rose 0.5%
currencies
- The Bloomberg Spot Dollar Index rose 0.1%.
- The euro fell 0.1 percent to $1.1006
- The Japanese yen fell 0.4 percent to 136.78 per dollar
- The offshore yuan fell 0.3 percent to 6.9472 per dollar
Digital currencies
- Bitcoin fell 2.4 percent to $28,637.34
- Ether fell 2.5% to $1,846.41
bonds
- The yield on the 10-year Treasury note advanced three basis points to 3.45%.
- The yield on the 10-year Australian Treasury note was little changed at 3.33%.
goods
- West Texas Intermediate crude fell 0.8% to $76.17 a barrel
- Spot gold fell 0.3 percent to $1,983.44 an ounce
This story was produced with help from Bloomberg Automation.
comments
Postmedia is committed to maintaining an active and civil forum for discussion and encouraging all readers to share their opinions on our articles. Comments may take up to an hour to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We’ve enabled email notifications – you’ll now receive an email if you get a response to your comment, if there’s an update to a comment thread you’re following or if it’s a user you’re following. Visit our Community Guidelines for more information and details on how to adjust your email settings.
Join the conversation