S&P 500 futures and crude oil climbed on Tuesday (Dec 27) amid positive sentiment from China’s rollback of Covid-19 isolation measures and cooling of a key inflation measure in the US.
Contracts for the equities benchmark rose about 0.5%, while those for the tech-heavy Nasdaq 100 advanced 0.7%. Oil jumped about 1.4%, supported by the outlook for demand in China, and as freezing weather across the US prompted refinery closures.
The offshore yuan held a gain from overnight, after China announced that it would drop quarantine for inbound travellers early next month. A gauge of dollar strength declined.
US Treasuries will resume trading following an extended break since the close of a holiday-shortened session in the US last Friday. The benchmark 10-year yield climbed the most last week since early April, ending around 3.75%.
Investors were taking encouragement from data last Friday that showed the US Federal Reserve’s closely watched measure of inflation cooling and consumer spending stagnating. Still, price pressures from the tight labour market remain a concern for the Fed and a challenge to bets that interest rates will be cut next year.
Benchmark equity indices for mainland China, Japan, India and South Korea climbed on Monday. Most other key markets in the region including Hong Kong, Singapore and Australia were shut. Hong Kong and Australia remain closed on Tuesday.
Key events this week:
China industrial profits on Tuesday
US wholesale inventories on Tuesday
The Bank of Japan’s summary of opinions of the Dec 19-20 meeting on Wednesday
US initial jobless claims on Thursday
The European Central Bank will publish its economic bulletin on Thursday
Some of the main moves in markets:
Stocks
S&P 500 futures had risen 0.5% as of 8.32am Tokyo time
Nasdaq 100 futures rose 0.7%
Currencies
The Bloomberg Dollar Spot Index fell 0.2%
The euro was little changed at US$1.0642
The yen rose 0.1% to 132.74 per dollar
The offshore yuan was little changed at 6.9751 per dollar
The Australian dollar rose 0.3% to US$0.6745
Cryptocurrencies
Bitcoin rose 0.1% to US$16,850.17
Ether rose 0.4% to US$1,221.26
Bonds
The yield on 10-year Treasuries advanced seven basis points to 3.75% last Friday
Commodities
West Texas Intermediate crude rose 1.4% to US$80.76 a barrel last Friday
Spot gold rose 0.3% to US$1,803.25 an ounce
