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Asia Pacific stocks rose after a rebound on Wall Street and oil rose to its highest level in two years as investors were reassured by signals that the Federal Reserve would continue to support the economic recovery from the coronavirus pandemic.

In early trading in the region on Tuesday, the Japanese Topix rose 2.4 percent and the Australian S & P / ASX 200 rose 1.2 percent. China’s CSI 300 index of stocks listed in Shanghai and Shenzhen rose 0.3 percent.

The moves followed a rebound in US stocks on Monday, with the S&P 500 closing 1.4 percent. US stocks fell last week after the Federal Reserve adopted a more restrictive tone, raising concerns that rate hikes could undo the global economic recovery.

But market sentiment was boosted on Monday by more reluctant comments from Fed officials, including Chairman Jay Powell, who said in prepared remarks ahead of Tuesday’s congressional hearing that the central bank would “do whatever it takes to keep the economy going for as long as necessary to support”. to complete the recovery ”.

John Williams, president of the Federal Reserve Bank of New York, also said Monday that the U.S. economy wasn’t ready for the central bank to begin withdrawing its hefty monetary support.

Pedestrians pass a stock exchange exhibition in Hong Kong during a rain shower on Tuesday © Kin Cheung / AP

Jean Boivin, head of the BlackRock Investment Institute, said that “the Fed’s new outlook will not lead to significantly higher rates anytime soon.” He added, “We may experience bouts of market volatility. . . but we advocate staying invested and surviving any turbulence. “

Futures for the S&P 500 rose 0.1 percent during Asian trading on Tuesday, while those for the London-based FTSE 100 rose 0.2 percent.

Commodity prices, which were brought to their knees last week on worries about the global economic outlook, also rose.

Brent crude, the international oil benchmark, rose 0.1 percent to $ 75 a barrel for the first time since April 2019. Brent is up over 50 percent this year, underscoring the strong demand ahead of the Opec + meeting next week.

Bitcoin stabilized after falling sharply in response to a warning from the People’s Bank of China on Monday that the country’s state banks and payment platforms must “investigate and identify” accounts that facilitate trading in cryptocurrencies and block all such transactions was.

The cryptocurrency rose 0.2 percent to $ 32,635 in Asian trading, but remained more than 7 percent in the red this month.

Bond markets stabilized after yields, moving in the opposite direction to prices, rose on Monday as investors ditched the safety of government bonds and re-invested in stocks. US 10-year Treasury yields fell 0.02 percentage points to 1.474 percent.

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