Written by Wayne Cole
SYDNEY (Reuters) – Investors on Monday resumed optimism about vaccines to deliver global economic growth, despite tightening viral rules for Tokyo and dragging Japanese stocks from a 30-year high.
After a slow start, the wide-ranging MSCI index of Asia-Pacific stocks outside Japan rose 0.8% to another all-time high.
South Korea rose 2%, led by the chip and auto sectors, while Chinese blue chips added 0.3%.
The futures of e-mini are also stable after touching the record level. EUROSTOXX 50 futures flat, futures up 0.4%.
While corona virus vaccines are helping to revive the global economy over time, investors are still keeping the money cheap, but much of that hope has already been priced and the virus is still spreading.
Initial profits will fall 0.4% after Prime Minister Yoshihide Suka confirms that the government is considering a state of emergency for Tokyo and three surrounding provinces.
Investors are watching carefully the election in Georgia for two U.S. Senate seats on Tuesday, which will determine which party controls the Senate.
If the Republicans win one or two, they will retain a slim majority in the House, and will be able to block Joe Biden’s legislative goals and judicial candidates in the presidential election.
“If the Democrats win both races, the vice-president-elect, Kamala Harris, will be a tiebreaker, giving the White House and the Congress party joint control,” CBA analysts said.
“It’s a matter of raising the possibility that the U.S. infrastructure spending package will be quickly overseen by Congress.”
The minutes of the Federal Reserve’s December meeting on Wednesday are expected to provide additional details on discussions on making their forward policy guidance more transparent and the prospects for further increases in property purchases this year.
Pays a risk
The data calendar contains production studies from around the world that show how the corona virus copes with the spread, as well as meticulously monitored ISM surveys of US factories and services.
Chinese factory activity continued in December, however the PMI fell short of forecasts of 53.0.
Japan’s factory operations were confirmed for the first time in two years in December, while Taiwan took over.
Friday looks at the U.S. December pay report, where average projections will only increase by 100,000.
As analysts Barclays (LON 🙂 Indicates a 50,000 drop in jobs, which could shock market hopes for a quick recovery.
“Initial claims during the December survey period indicate a slow pace of activity indicators as the economy closes throughout the year, including data from higher labor markets,” economist Michael Caban said in a note.
Such a fall would put further easing pressure on the central bank, which is another burden on the dollar, which is already under the weight of a massive US budget and trade deficit.
It was last seen at 89.704, down nearly 7% in 2020 from its recent 2-1 / 2 year low of 89.515.
The euro hit a high of $ 1.2302 at the end of last week, pushing it back to 25 1.2252 after gaining a profit late last week. This is almost 9% more than in 2020.
The dollar fell to 103.02 yen and was at risk of testing key support at 102.55. Sterling 36 was confirmed at 1.3690, last seen in mid-2018.
The cryptocurrency traded at $ 33,102, after touching a historic high of $ 34,800.
The fall in the dollar has been a support for gold, with the metal 1% firm at $ 1,917 an ounce.
Oil prices have stabilized after two months of solid gains, with the Brent meeting resistance at $ 52.50 a barrel. This improvement further reduced Brent to 21.5% and WTI to 20.5%. [O/R]
On Monday, the futures were up 36 cents at $ 52.16 and 32 cents at $ 48.84.