Asian markets rise after Wall St record
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Hong Kong (AFP) – Asian markets edged higher on Tuesday after another record high on Wall Street with optimism about the prospects for a recovery to now outweigh long-term inflation fears, with expectations for even more gains to come.
Traders have been in high spirits since the Fed unveiled its plan to withdraw from its broad financial support last week, but said it would act cautiously in raising interest rates, while analysts said d Other central banks were less inclined to tighten their policies than investors had anticipated.
Still, the Fed warned on Monday in a closely watched report that the rally in markets could quickly reverse if there was another surge in Covid or the blockages in the recovery, while also raising concerns about the possible impact of the real estate crisis in China.
All three major indexes in New York City hit record highs for the second day in a row, aided by news that U.S. lawmakers had passed President Joe Biden’s $ 1.2 trillion infrastructure overhaul and the country has reopened to vaccinated visitors from over 30 countries.
This all adds up to a strong earnings season and after Pfizer’s announcement that a pill to treat Covid has proven to be extremely effective, bringing the world one step closer to the fight against the disease.
And market analyst Louis Navellier said he was very optimistic about the outlook.
“I think at the end of January we will be 18-20% higher than today,” he said in a note. “It’s a bold statement. But we have a lot of earnings, seasonal strength and an accommodating Fed.”
Asia, which struggled on Monday, managed to follow Wall Street’s lead in early trading. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta all increased.
Still, the specter of inflation continues to loom, with prices at multi-year highs due to supply chain growls, skyrocketing energy costs and a rebound in demand as l economy is returning to normal.
While the Fed has said it will be careful about raising borrowing costs, Vic Chairman Richard Clarida has said the economy could be ready for a turnaround by the end of 2022.
“While we are clearly a long way from considering an interest rate hike,” he said he believed “the conditions for raising the target range for the federal funds rate will have been in place by the end of this year. the year 2022 “.
However, other senior Fed officials have taken a more conciliatory view on the outlook and timing for a rate take-off.
“So the bottom line is that just like the market, Fed officials are not one hundred percent sure how inflation dynamics are going,” said Rodrigo Catril of the National Australia Bank.
“If price pressures remain high, next year the Fed will be forced to lean against them even if maximum jobs have yet to be reached.”
All eyes are now on the release of US inflation data on Tuesday and Wednesday to get a new idea of the bank’s plans.
Bitcoin hit a new high of $ 67,804, with the combined value of all cryptocurrencies exceeding $ 3 trillion, according to data provider CoinGecko.
Key figures around 02:30 GMT
Tokyo – Nikkei 225: UP 0.1% to 29,536.17 (pause)
Hong Kong – Hang Seng Index: up 0.2% to 24,822.34
Shanghai – Composite: EN up 0.1% to 3,501.10
Dollar / yen: LOWER to 113.02 against 113.22 yen at 2145 GMT
Pound / dollar: DOWN to $ 1.3563 from $ 1.3565
Euro / dollar: DOWN to $ 1.1584 from $ 1.1587
Euro / pound: up to 85.42 pence against 85.40 pence
West Texas Intermediate: EN up 0.1% to $ 82.00 per barrel
North Sea Brent: Up 0.1% to $ 83.49 per barrel
New York – Dow: UP 0.3% to 36,432.22 (close)
London – FTSE 100: DOWN 0.5% to 7,300.40 (close)
© 2021 AFP