(Bloomberg) — Asian stocks are expected to gain less on Monday after weekend data showing signs of a slowing U.S. economy and weak demand in China.
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Stock futures for Australia, Japan, Hong Kong and mainland China are all pointing to some losses. The S&P 500 index struggled to gain traction on Friday, as consumer sentiment fell to a six-month low and short-term inflation expectations rose, posing challenges to the Federal Reserve's policy outlook. Contract prices in the US fell slightly.
A series of statistical releases from China could further weigh on Asian stocks. Consumer prices rose for the third straight month, but industrial prices fell longer and credit contracted for the first time in April as government bond sales slowed and loan expansion was worse than expected.
“We're concerned, but there's no need to panic,” Macquarie Group economist Larry Hu said. “The big deviation in April's credit statistics is mainly due to temporary technical reasons, rather than a sharp deterioration in the underlying economy.”
Global stock markets rose for the third consecutive week, driven by strong profit growth, especially for AI-related stocks. Meanwhile, the benchmark 10-year Treasury note fell for the first time in two weeks, even as yields rose on Friday after consumers' one-year inflation expectations rose to 3.5%, the highest level since November. Rose. Australian yields rose in early Asian trading.
Wednesday's U.S. April inflation data was the biggest test yet for this month's rally sparked by Fed Chair Jerome Powell dispelling concerns the central bank could raise interest rates again. It seems like it will be. Expectations for a rate cut by the end of the year have largely been dispelled, although traders, including Dallas Fed President Rory Logan, have suggested it is too early to consider easing policy. It incorporates more than enough possibilities.
“As long as the labor market remains tight, consumer resilience could continue to dampen expectations for inflation to subside,” said Subhadra Rajappa, head of U.S. rates strategy at Société Générale in New York. Ta. “A resumption of the disinflationary trend is essential for the Fed to consider cutting rates this year.”
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As the Russian military seeks to use its battlefield superiority to advance its war against Ukraine, major stocks such as gold and oil are on the rise on Monday after President Vladimir Putin surprisely replaced his long-serving defense minister. The product will attract attention. The move comes just days before Putin plans to visit China and a NATO military summit is to be held in Brussels. Crude oil fell slightly in early trading, but gold was little changed.
Meanwhile, the United States has grown increasingly concerned about Israel's attack on Gaza, warning that the Jewish state risks inciting the Hamas insurgency. US Secretary of State Antony Blinken said the Biden administration had not yet seen a “credible” Israeli plan or post-war plan to protect civilians in the Rafah attack.
Considered haven currencies during times of geopolitical instability, the US dollar and Swiss franc were largely unchanged in early Asian trading.
Elsewhere this week, China is set to set interest rates, the euro zone is scheduled to release inflation and growth statistics, and a number of Fed officials, including Chairman Jerome Powell, are scheduled to speak. Australia's employment figures are due to be released, and the country's government is expected to announce spending plans for next year.
This week's main events:
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Australian business confidence on Monday
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New Zealand food prices, inflation expectations, Monday
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India Trade, CPI, Monday
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Eurozone finance ministers meet in Brussels on Monday
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Australia 2024-25 Budget, Tuesday
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Japan PPI, Tuesday
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German CPI, ZEW survey forecast, Tuesday
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UK unemployment insurance claims, unemployment rate, Tuesday
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US PPI, Tuesday
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Fed Chairman Jerome Powell and ECB Governing Council member Claes Knott speak on Tuesday
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China interest rate decision Wednesday
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Eurozone industrial production, GDP, Wednesday
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US CPI, Retail Sales, Business Inventories, Imperial Manufacturing, Wednesday
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Australian unemployment rate Thursday
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Japan's GDP, industrial production, Thursday
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China real estate prices, retail sales, industrial production, Friday
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Eurozone CPI, Friday
The main movements in the market are:
stock
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S&P 500 futures were down 0.1% as of 8:24 a.m. Tokyo time.
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Hang Seng futures fell 0.2%.
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S&P/ASX 200 futures down 0.2%
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Nikkei 225 futures fell 0.1%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0775.
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The Japanese yen remains unchanged at 1 dollar = 155.78 yen.
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The offshore yuan was almost unchanged at 7.2354 yuan to the dollar.
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The Australian dollar was almost unchanged at US$0.6607.
cryptocurrency
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Bitcoin rose 0.3% to $61,436.05
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Ether rose 0.4% to $2,934.95
bond
merchandise
This article was produced in partnership with Bloomberg Automation.
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