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The strain shrugs the worry of the virus. Reuters focusing on the ECB

© Reuters.

Tom Westbrook

Singapore (Reuters)-Asia stocks rebounded Thursday, investors seem to have set aside virus jitter so far, and expected the European Central Bank to ensure that policy support would continue for some time. Bonds contributed to losses and oil continued to skyrocket.

MSCI’s widest non-Japanese Asia-Pacific stock index rose sharply from Sydney to Seoul and Hong Kong, up 1%, following Wall Street. The Japanese market is closed until Monday.

Wednesday’s survey showed both, but there was no clear catalyst for recent stock rebounds or drawdowns on Friday and Monday. Pfizer The (NYSE :) and AstraZeneca (NASDAQ :) vaccines were effective against the delta coronavirus mutant.

Jun Bei Liu, Portfolio Manager, Tribeca Investment Partners, Sydney, said:

“The market was suddenly concerned about the delta variant and how it would affect the path to recovery,” he said. “But compared to 12 months ago, there are quite a few viable vaccines … eventually getting out of the way and much closer to the end than 12 months ago.”

Still, unlike Wall Street, most Asian indices lose early in the week as Asia struggles with the outbreak of unvaccinated population and is nervous about cracking down on Chinese regulations on tech companies. I had a hard time getting it back.

A stake in heavy-debt Chinese real estate developer Evergrande has rebounded by about 11% in Hong Kong after saying it has settled a legal dispute with lenders.

Elsewhere, the resilience of the US dollar, which traded near its peak in recent months early in the Asian session, also suggests that the currency market remains fairly cautious. [FRX/]

Soil was 92.812, below the three-month peak of 93.194, and the euro was stable, just above the recent low of $ 1.1791.

Westpack analysts support the view that high inflation could boost U.S. rate hikes, saying “the dollar is trading on the forefoot despite recent fluctuations in risk sentiment.” Stated.

A more structural shift to the dovish European Central Bank should solidify the dollar index to a higher level, analysts said, and this year’s highs are likely to be tested this quarter.

About Lagarde Watch

On Thursday’s almost naked data calendar, the European Central Bank’s decision-making decisions scheduled for 1145 GMT followed by President Christine Lagarde’s press conference are the main focus of the market.

Lagarde imbued traders with expectations after flagging adjustments to bank interest rate guidance to reflect a new and more flexible inflation targeting strategy.

“To actually strengthen their credibility, the ECB can link interest rate paths to explicit calendar days, which means interest rates until late 2024,” said Luke Sadders, a strategist at brokerage firm Pepperstone. We will not raise it. ” “It’s a dovish surprise for the Forex market and will put pressure on the Eurocross.”

The interest rate market is idle in Asia, and holidays in Tokyo have reduced trading. This follows an overnight Treasury sale that brought the 10-year yield, the benchmark for US Treasuries, to 1.2884%.

Investors are looking to a brewing party confrontation in Washington over US debt caps as the US Treasury is expected to run out of borrowing power in October.

In the commodity market, oil remained most of Wednesday’s sharp rise in prices, the largest daily rise in three months. Futures were weak at $ 71.94 a barrel at the end, up 0.4%, but rose more than 4% on Wednesday.

Gold was stable at $ 1,801 per ounce and cryptocurrencies from lows when Tesla boss Elon Musk said he was likely to resume accepting Bitcoin payments after energy use due diligence. It was strong even after it bounced off.



The strain shrugs the worry of the virus. Reuters focusing on the ECB

Source link The strain shrugs the worry of the virus. Reuters focusing on the ECB

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