Asian stocks were mixed and U.S. equity futures retreated Tuesday in the wake of a dip in technology giants on Wall Street. The dollar steadied after declining along with Treasury yields.
South Korean shares slid while Australia rose modestly. Trading will be limited with Japan and China among markets closed for holidays. U.S. equity contracts fell after the S&P 500 Index ended near session lows and shares such as Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100.
Ten-year Treasury yields dropped back to around 1.6% amid comments from Federal Reserve Chair Jerome Powell that the economic recovery is patchy.
Commodities held an advance after silver led gains in precious metals as the prospect of near-zero rates for longer boosted demand. Oil was steady after climbing over 1%. Digital token Ether extended its surge to set another record.
Data Monday showed growth among U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Powell reiterated that progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.
“The world remains almost perfect for equities,” Chris Iggo, a chief investment officer at AXA Investment Managers, said in a note. Despite strong growth, rising earnings and rich valuations, “no-one is taking the punch-bowl away for now,” he added.
Markets seem to be looking through the persistent threat of the pandemic, focusing instead on the relative success of the vaccine rollouts in much of the developed world. Meanwhile, fierce new Covid-19 waves are enveloping India and parts of Southeast Asia, placing severe strain on their health-care systems and prompting appeals for help.
Here are some key events to watch this week:
- U.S. trade balance, factory orders, durable goods are due Tuesday
- The Reserve Bank of Australia monetary policy decision is coming Tuesday
- Chicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic Club
- Bank of England rate decision Thursday
- The April U.S. employment report is released on Friday
These are some of the main moves in markets: