Asian Stocks Revive as Wall St Futures Rise After Holiday
Asian stocks resumed on Tuesday; When Wall Street futures rose, While U.S. markets were closed for the holidays. Increased Tokyo, Shanghai, Hong Kong, and Sydney. Oil prices gain to $110 a barrel. The Wall Street benchmark S&P 500 index rose 1.4% after the next three-day weekend. According to experts, the profit is trying to stop the previous losses, indicating buyers’ presence.
The Shanghai Composite Index rose less than 0.1% to 3,318.29. The Nikkei 225 added 1.8% to 26,225.15. Hang Seng advanced 1% to 21,368.85. Kospi was up 0.4%, to a total of 2,398.95. The S&P-ASX 200 rose to 6,509.80, for a total of 1.2%. The markets of New Zealand and Southeast Asia have risen.
Investors fear that U.S. and European central banks will try to cool inflation to a four-decade high, which May hinder global economic growth. China and Japan, two of the three largest economies, have avoided raising rates. China’s central bank on Monday left benchmark rates unchanged. Last week, the Bank of Japan continued its near-zero interest rate policy. The concern is causing the yen exchange rate to weaken.
The S&P 500 fell more than 20% from its January 3 peak; This is what traders call the bear market. Investors are looking for hints about possible rate hikes from the Fed plans when Chairman Jerome Powell addresses congressional committees this week. European stock exchanges moved up on Monday. Tokyo, Shanghai, and Seoul refused. The price of U.S. oil in electronic trading on the New York Mercantile Exchange rose to $110.45. The price of Brent International Trade Standard in London rose to $115.59. The dollar stayed stable at 135. The euro rose to $1.0529.
In London, stock prices rose on Tuesday after a positive Asian lead. Some stability was returning to the markets after significant losses last week. IG futures indicate that the FTSE 100 index will open at 7,142.30, 20.49 higher. The index closed at 105.56 points at 7,121.81 on Monday.
The calendar of economic events on Tuesday has home sales in the U.S. at 1500 BST. Due to the holidays, financial markets in New York will reopen Monday after closing. According to an analyst at CMC Markets, Asian markets started where European markets stopped; They rose higher, and with U.S. futures, today’s European openness looks positive. U.S. markets are coming back later today.
This week focuses on a two-day testimony by Federal Reserve Chairman Jerome Powell to lawmakers in Washington, which will closely monitor to clarify the current thinking of the U.S. Federal Reserve.
It is worth noting that last week the Fed announced a three-quarter rate increase; the data showed that inflation reached a four-decade high. Several officials – including the Fed, the Bank of England, the Reserve Bank of Australia, and the European Central Bank – have come out recently to point to further tightening of borrowing costs.
Ocado announced late Monday that it plans to raise 5 575 million to accelerate growth plans amid rising online food demand and the COVID-19 pandemic. An online grocery store and warehouse technology provider will raise funds through non-preventive placement. The price per share is determined at the end of the book construction process. In addition, GBP300 million new banking facility was agreed upon. The pound was quoted at $1.2260 earlier on Tuesday. Gold is worth $1,836.12 an ounce.
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