Asian stocks are rising with Wall St futures, the mood is fragile

The euro has eased somewhat after French President Emmanuel Macron lost control of the National Assembly in Sunday’s legislative election, a major setback that could plunge the country into political paralysis.

Nasdaq futures took the first steps up 1.0% and S&P 500 futures rose 0.6%. Lately, they have had a habit of winning in Asia and then returning, discovering London and New York.

The S&P 500 fell nearly 6% last week, trading 24% below its peak in January. BofA analysts noted that this was the 20th bear market in the last 140 years and that the average decline from the peak to the minimum was 37.3%.

Investors hope that it will not correspond to the average duration of 289 days, given that it will end no earlier than October 2022.

MSCI’s widest Asia-Pacific equity index outside Japan rose 0.1% on hard stocks. Tokyo’s Nikkei rose 0.6%, recently supported by a sharp fall in the yen, which boosted exporters.

The news that President Joe Biden is considering lifting some tariffs on China and a possible pause on the federal gasoline tax to help fight inflation has helped lift sentiment.

However, markets fear that large central banks will be forced to tighten policies so aggressively as to curb rapid inflation that will lead the world into recession.

“Market volatility remained high as the VIX index had its strongest weekly close since late April, a topic that goes beyond the stock with a surge in currency and exchange rate volatility, as well as credit spreads. More importantly, “said Rodrigo Catril, NAB strategist.

“At this stage, it is difficult to predict a reversal of the situation until we have evidence of a significant reduction in inflationary pressures.”

Relief seems unlikely this week, as inflation data in the UK show another worrying value that could push the Bank of England to accelerate growth.

Also on the agenda this week are many central bankers, presumably led by the hawkish testimony of Federal Reserve Chairman Jerome Powell before the House of Representatives on Wednesday and Thursday.

Last week, the Fed promised that its commitment to curb inflation was “unconditional”, while Fed Governor Christopher Waller said on Saturday that he would support another increase of 75 basis points in July.

This false promise keeps the dollar at 104,680 and close to the high of 105,790 reached last week.

The euro was slightly lower after the French election at $ 1.0488, still uncomfortably close to last week’s low of $ 1.0357.

The yen remained under widespread pressure, the Bank of Japan stubbornly pursued a mitigation policy, while all other developed countries took steps to strengthen. The dollar closed at 135.36 yen after reaching its highest level since 1998 last week.

The strength of the dollar has kept gold in close side mode for about a month, and it remains at $ 1,838 an ounce. [GOL/]

Oil prices rose slightly on Monday after falling sharply late last week as worries about high energy prices added to the risk of a global recession that would eventually weaken demand. [O/R]

Brent rose 69 cents to $ 113.81, while US oil rose 80 cents to $ 110.36 a barrel.

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