US futures steady, Asia stocks drop; yields rise: markets wrap – Moneyweb

Asian stocks fell Wednesday as traders evaluated more evidence of intensifying global price pressures, a flareup in US-China tension and the corporate earnings outlook.

Equities fell in Japan, and Chinese technology shares slid on concerns about more scrutiny from Washington after the US banned China Telecom’s American business. S&P 500 and Nasdaq 100 futures were steady amid a mixed response to big-tech earnings released later in the US session.

The debt crisis in China’s property sector continues to hang over the market: authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s woes. Meanwhile, a top Chinese regulator called on companies to make “active preparations” to meet payments on offshore bonds.

In Australia, bond yields and currency climbed after core inflation beat estimates. The three-year yield topped 1% for the first time since 2019. Treasury yields advanced and the yield curve flattened. The dollar was steady.

Investors are counting on earnings to support equity prices and so far the reporting season has been solid overall. But worries remain that over time rising raw material and wage costs and supply-chain snarls could crimp margins. Citigroup Inc. warned that profit growth may be close to peaking.

“Downside risks to the economy remain but investors are opting to look beyond these as companies continue to give us plenty of reason to be optimistic about what lies ahead,” Craig Erlam, senior market analyst at Oanda, wrote in a note. Such “enthusiasm may come and go, creating plenty of two-way action in the markets,” he added.

Meanwhile, the energy crunch continues to ripple across the global economy. Coal stockpiles at US power plants plunged to the lowest in at least 24 years. WTI crude oil slid under $84 a barrel.

Gold retreated back below $1 800 an ounce and Bitcoin slipped to around $61 200. On the virus front, a Food and Drug Administration panel gave its backing to the Pfizer Inc. and BioNTech SE vaccine for young children.

Here are some events to watch this week:

  • Earnings: Amazon, Apple, Samsung Electronics, China Vanke, PetroChina, Ping An Insurance Group
  • Australia CPI, Wednesday
  • US wholesale inventories, U.S. durable goods, Wednesday
  • Bank of Japan monetary policy decision, briefing, Thursday
  • ECB rates decision, President Christine Lagarde briefing, Thursday
  • US GDP, initial jobless claims, Thursday
  • G-20 joint finance and health ministers meeting ahead of the weekend leaders’ summit, Friday

Some of the main moves in markets:


  • S&P 500 futures rose 0.1% of 6:30 a.m. in London. The S&P 500 rose 0.2%
  • Nasdaq 100 futures added 0.1%. The Nasdaq 100 rose 0.3%
  • Japan’s Topix index fell 0.4%
  • Australia’s S&P/ASX 200 Index was little changed
  • South Korea’s Kospi index fell 0.8%
  • Hong Kong’s Hang Seng Index dropped 1.6%
  • China’s Shanghai Composite Index shed 1.1%
  • Euro Stoxx 50 futures fell 0.3%


  • The Japanese yen was at 114.04 per dollar
  • The offshore yuan traded at 6.3823 per dollar
  • The Bloomberg Dollar Spot Index was steady
  • The euro was at $1.1601


  • The yield on 10-year Treasuries rose about two basis points to 1.62%
  • Australia’s 10-year bond yield rose one basis point to 1.82%.


  • West Texas Intermediate crude was at $83.75 a barrel, down 1%
  • Gold was at $1 787.82 an ounce, down 0.3%

© 2021 Bloomberg


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