US Stock Futures Predicted To Move Upward As Dollar Trades Lower

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:


S&P 500 futures had risen 0.5% as of 8.32am Tokyo time

Nasdaq 100 futures rose 0.7%


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


Bitcoin rose 0.1% to US$16,850.17

Ether rose 0.4% to US$1,221.26


The yield on 10-year Treasuries advanced seven basis points to 3.75% last Friday


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

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