4 Minute Read by Reuters Staff (Reuters) – SHANGHAI (Reuters) – After surging consumer confidence in the economy propelled the Nasdaq index to its highest-ever closing level, Asian markets gained and a gauge of global stocks lingered near record highs on Wednesday. On June 21, 2021, a guy stands outside a brokerage in a business sector in Tokyo, Japan, watching an electric board showing the Nikkei index. Kim Kyung-Hoon/Kim Kyung-Hoon/Kim Kyung-Hoon/Kim Kyung-Hoon/Kim Kyung On Wednesday, the MSCI global stock index was set to advance for the sixth month in a row. Its index tracking Asian stocks outside of Japan was expected to have a modest monthly loss, but it was still on track to post its sixth consecutive quarterly gain, the longest such streak since 2006-2007. On the day, the Asian index was up 0.33 percent. Chinese blue-chip stocks increased 0.1 percent, Australian shares jumped 0.58 percent, extending their winning streak to a ninth month, and Seoul’s Kospi rose 0.35 percent. The Nikkei in Japan gained 0.06 percent. Nonetheless, Steven Daghlian, a market analyst at CommSec in Sydney, said that markets were “on edge” ahead of the release of US non-farm payrolls data on Friday, the findings of which could affect Federal Reserve policy. According to Reuters polled economists, 690,000 new jobs will be added in June, up from 559,000 in May. “(It appears to be) five months of advances in the United States… remaining at record highs at the conclusion of the month and quarter. As a result, there may be a little bit more volatility “Daghlian stated. President Thomas Barkin of the Richmond Federal Reserve said on Monday that the US central bank has achieved “significant more progress” toward its inflation target, allowing it to begin decreasing asset purchases. As the world’s largest economy recovers from pandemic lockdowns, the market continues to focus on Fed tapering prospects. In June, consumer confidence in the United States reached its best level in in a year, as rising labor market optimism and a reopening economy countered concerns about rising inflation. Even as the Federal Housing Finance Agency’s house price index soared to a new high of 15.7 percent from a year ago in April, confirming surging house price inflation. The Dow Jones Industrial Average and S&P 500 both climbed 0.03 percent overnight, while the Nasdaq Composite gained 0.19 percent, closing at a new high. At the same time, several investors are concerned about the economic implications of the COVID-19 virus’s highly virulent Delta version. Outbreaks have been reported in Indonesia, Malaysia, Thailand, and Australia, and Spain and Portugal have imposed restrictions on unvaccinated British tourists. New statistics revealed that activity in China’s services sector rose at a slower pace in June, highlighting the impact of even tiny flare-ups of new COVID-19 cases, as curbs from a resurgence in cases in southern China restrained a comeback in consumption. With the dollar slipping down from one-week highs, the currency market was more focused on the possible impact of new viral outbreaks. The dollar index was last down 0.04 percent at 92.026, while the yen was up 0.08 percent at 110.48 and the euro was up 0.08 percent at $1.1904. “Month-end rebalancing flows may also be at play,” Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a note, “although with U.S. stocks outperforming in June and the quarter, the bias would be for USD selling rather than purchasing.” The value of the pound was last seen at $1.3857, up 0.17 percent on the day. Meanwhile, Treasury yields in the United States were somewhat lower. The yield on the benchmark 10-year note was 1.4765 percent last night, down marginally from 1.48 percent late Tuesday. The 30-year bond yielded 2.0891 percent last week, down from 2.097 percent the day before. Despite the fresh Delta variant outbreaks, oil prices stayed higher as hopes for a demand recovery remained high. Brent crude futures rose 0.56 percent to $75.18 per barrel, while U.S. crude rose 0.79 percent to $73.56 per barrel. The price of spot gold increased 0.15 percent to $1,763.66 per ounce. Andrew Galbraith contributed reporting, with Elizabeth Dilts Marshall in New York contributing further reporting. Kenneth Maxwell edited the piece. Continue reading
