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Stocks rise, futures steady as US payrolls loom: markets wrap

Treasury yields ticked up ahead of a key American jobs report.
Image: Gilles Sabrie/Bloomberg

Most Asian stocks climbed Friday aided by a rise in Chinese shares and easing concerns about the US debt ceiling. Treasury yields ticked up ahead of a key American jobs report.

Japanese shares outperformed and China advanced after reopening from a long holiday. S&P 500, Nasdaq 100 and European futures fluctuated in the wake of a third day of gains for US stocks. The Senate voted to temporarily increase the debt ceiling, breaking a prolonged stalemate that had buffeted markets.

China’s stock gauges weathered the ongoing debt woes in the nation’s property sector and Beijing’s wider regulatory broadsides. Government bond futures fell as the central bank drained short-term liquidity from the banking system.

The 10-year US Treasury yield reached the highest since June. Investors are fretting over inflation amid a global energy crunch, and the U.S. payrolls report Friday could cement expectations that the Federal Reserve will soon start tapering bond purchases. Australian and New Zealand debt fell, the yen declined and the dollar edged higher.

Global stocks are on course for their best week since early September, helped by the US move to avert the risk of an immediate default amid the political wrangling over the debt limit. But commodity-fueled price pressures, the prospect of tighter monetary policy and China’s property-sector slowdown remain risks for the recovery from the pandemic.

“As soon as you start thinking about tapering it’s really hard to not then think about what that means for the Fed funds rate and when that might start to increase,” Kim Mundy, currency strategist and international economist at Commonwealth Bank of Australia in Sydney, said on Bloomberg Television. “We do see scope that markets can start to price in a more aggressive Fed funds rate hike cycle.”

Elsewhere, oil extended a rebound after the US Energy Department said it has no plans “at this time” to tap into the nation’s oil reserves to help quell rising fuel prices. The recent sharp rally in Bitcoin paused around the $54 000 level.

Here are some events to watch this week:

  • The US Labour Department releases unemployment and job creation data Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures were little changed as of 6:50 a.m. in London. The S&P 500 rose 0.8%.
  • Nasdaq 100 contracts fell 0.1%. The Nasdaq 100 rose 0.9%
  • Japan’s Topix index increased 1.4%
  • Australia’s S&P/ASX 200 index was 0.9% higher
  • South Korea’s Kospi shed 0.1%
  • Hong Kong’s Hang Seng index added 0.2%
  • China’s Shanghai Composite index increased 0.6%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1%
  • The euro was at $1.1550
  • The Japanese yen was at 111.91 per dollar, down 0.3%
  • The offshore yuan was at 6.4521 per dollar

Bonds

  • The yield on 10-year Treasuries advanced about two basis points to 1.60%
  • Australia’s 10-year bond yield climbed five basis points to 1.64%

Commodities

  • West Texas Intermediate crude rose 1.5% to $79.46 a barrel
  • Gold was at $1 758.16 an ounce, up 0.1%
© 2021 Bloomberg

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