(Bloomberg) — Stocks in commodity companies rose as copper and gold prices hit record highs, and Asian stocks rose along with European stock futures. Expectations for an eventual rate cut by the U.S. Federal Reserve also supported the rise.
Most Read Articles on Bloomberg
The MSCI AC Asia-Pacific Index rose for the seventh day in a row, with the materials sector posting the biggest rise. Stock indexes in Japan, China, Hong Kong and Australia all rose, while futures markets in Europe and the United States showed gains.
The timing of the Fed's likely move to cut interest rates has shaped trading across financial markets in recent days. On Friday, the blue-chip Dow Jones Industrial Average closed above 40,000 for the first time, and gold soared to an all-time high on Monday on optimism about U.S. monetary easing. Strong corporate profits boosted sentiment.
Investors are turning their attention to the Middle East after Iranian President Ebrahim Raisi and his foreign minister were killed in a helicopter crash.
“With copper at a record high and other commodity prices also strong, the market is focused on global economic recovery,” said Yuya Fukue, a trader at Rheos Capital Works in Tokyo.
The Bloomberg Dollar Index edged lower after falling last week on data showing U.S. inflation eased more in April than economists expected. A number of Fed officials are scheduled to speak this week, including Governor Christopher Waller, who will talk specifically about the U.S. economy and monetary policy.
Copper prices have soared to record highs, continuing a months-long rally as investors flooded the market in anticipation of worsening supply shortages. Futures prices on the London Metal Exchange exceeded $11,000 for the first time.
Oil prices showed only a slight increase on Monday, but developments in the Middle East could spur demand for shelter.
The Iranian president's death comes amid turmoil in the Middle East, where the war between Israel and Hamas in Gaza is escalating. The conflict brings Iran and Israel, which support Islamic extremists, closer to full-scale conflict. Raisi was seen as a potential successor to the Islamic Republic's supreme leader Ayatollah Khamenei.
Saudi Arabia's King Salman bin Abdulaziz will receive treatment for a lung disease, the state-run Saudi Press Agency said. King Salman has led the world's largest oil exporter since 2015. His son, Crown Prince Mohammed bin Salman, was scheduled to meet with Prime Minister Fumio Kishida, but a Japanese government spokesperson said the visit had been postponed.
Maybank analysts, including Saktyandi Spaat and Fiona Lim, said in a note: “Risk sentiment in Asia appears positive, but concerns may still remain that tensions in the Middle East could worsen. “This could provide some support to oil prices for the time being.”
This week's agenda includes developments in economic activity in Europe and inflation trends in the UK, Canada and Japan. Policy decisions are also expected in New Zealand, Indonesia, South Korea and Chile, and Nvidia is expected to report earnings.
This week's main events:
-
BOE Deputy Governor Ben Broadbent speaks on monetary policy communication on Monday
-
Chile GDP, Monday
-
Reserve Bank of Australia releases minutes of May policy meeting on Tuesday
-
Canadian Consumer Price Index, Tuesday
-
Fed Director Christopher Waller speaks on U.S. economy and monetary policy on Tuesday
-
BOE Governor Andrew Bailey speaks on Tuesday
-
New Zealand interest rate decision Wednesday
-
Indonesia interest rate decision Wednesday
-
South African CPI, Wednesday
-
UK CPI, Wednesday
-
FOMC Minutes of Wednesday Policy Meetings from April 30th to May 1st
-
Singapore CPI, GDP, Thursday
-
South Korean interest rate decision Thursday
-
India S&P Global Manufacturing and Services PMI Thursday
-
Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, Consumer Confidence, Thursday
-
U.S. new home sales, new unemployment claims, Thursday
-
Chile interest rate decision Thursday
-
Japan CPI, Friday
-
German GDP, Friday
-
Malaysia CPI, Friday
-
US Durable Goods, University of Michigan Consumer Sentiment, Friday
The main movements in the market are:
stock
-
As of 6:29 a.m. London time, S&P 500 futures were up 0.2%.
-
Nasdaq 100 futures rose 0.2%
-
Dow Jones Industrial Average futures little changed
-
MSCI Asia Pacific Index rose 0.4%
-
MSCI Emerging Markets Index rose 0.2%
-
S&P 500 futures rose 0.2%
-
Japan's TOPIX rose 0.7%
-
Australia's S&P/ASX 200 rose 0.7%
-
Hong Kong's Hang Seng rose 0.5%.
-
The Shanghai Composite rose 0.5%.
-
Euro Stoxx50 futures rose 0.3%
currency
-
Bloomberg Dollar Spot Index little changed
-
The euro rose 0.1% to $1.0881.
-
The Japanese yen remained almost unchanged at 155.70 yen to the dollar.
-
The offshore yuan was almost unchanged at 7.2370 yuan to the dollar.
-
The British pound was almost unchanged at $1.2705.
cryptocurrency
-
Bitcoin rises 1.5% to $67,126.05
-
Ether rose 1.7% to $3,128.62.
bond
-
The 10-year government bond yield was almost unchanged at 4.41%.
-
Germany's 10-year bond yield rose 6 basis points to 2.52%.
-
The UK 10-year bond yield rose 5 basis points to 4.13%.
-
The Australian 10-year bond yield rose 2 basis points to 4.23%.
merchandise
-
Spot gold rose 1% to $2,439.71 an ounce.
-
West Texas Intermediate crude oil is little changed.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson, Matthew Burgess and Hideyuki Sano.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
