Asian stocks rose, with Japanese and South Korea shares erasing yesterday’s losses as speculation Europe will expand its economic stimulus fueled a global equity rebound. Australian bonds declined before an inflation report, while wheat extended its advance.
The MSCI Asia Pacific Index climbed 0.8 percent by 9:25 a.m. in Tokyo, as Japan’s Topix index added 1.9 percent and the Kospi index increased 0.8 percent in Seoul. Both gauges retreated at least 0.7 percent yesterday. Standard & Poor’s 500 Index futures lost 0.1 percent after the U.S. gauge jumped the most in a year. BHP Billiton Ltd. (BHP) drove Australian stock gains after reporting an increase in iron-ore output. Yields on the nation’s 10-year bonds climbed seven basis points. Wheat futures advanced for a second day, adding 0.5 percent.
Both Australia and the U.S. report on prices today, as investors examine economic data for signs of weakness after concerns over a global slowdown sparked a rout in risky assets last week. The European Central Bank bought Italian debt yesterday, people familiar with the move said, amid speculation officials may expand into corporate-debt purchases. Apple Inc. (AAPL) drove the biggest gain in the Nasdaq 100 Index since January 2013 after forecasting record sales for the holiday season.
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AUD/USD dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD lacks momentum, churns near 1.0750
EUR/USD cycled familiar levels again on Tuesday, testing the waters near 1.0750 as broader markets look for signals to push in either direction. Risk appetite was crimped on Tuesday after Fedspeak from key US Federal Reserve officials threw caution on hopes for approaching rate cuts from the Fed.
Gold wanes as US Dollar soars, unfazed by lower US yields
Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.
Democrats to introduce bill targeting crypto mixing services
Rep. Sean Casten revealed in a House hearing on Tuesday that Democrats are planning to issue a bill this week that would target crypto-mixing protocols. Democrats and Republicans also clashed over the SEC's recent action against crypto companies.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.