Asian Stocks and US Futures Advance After Biden Speech | Associated press
Asian stocks rose on Thursday and US futures were also higher after President Joe Biden delivered a speech to Congress outlining ambitious plans for job-creating spending on preschool education, child care and other utilities.
Investors stayed on the sidelines ahead of the release later today Growth data in the United States for the January-March quarter. The gross domestic product reading could surpass 5% and accelerate even more to 10% or even more in the current quarter from April to June, with pent-up demand fueling spending.
Shares rose in Hong Kong, Shanghai, Seoul and Sydney. Bond yields remained stable while oil prices rose.
Wall Street benchmarks slid Wednesday after the Federal Reserve said he was leaving its key rate unchanged near zero, while noting the recent improvement in the economy.
In his speech on Wednesday night, the president ticked off details of some of his plan $ 1.8 trillion in spending to expand preschool, create a national family and medical leave program, distribute child care grants and more.
The plan comes on top of his $ 2.3 trillion spending proposal to rebuild roads and bridges, expand broadband access, and launch other infrastructure projects.
The future of the Dow industrials rose 0.4% while that of the S&P 500 climbed 0.6%.
In Asian trade, Japanese markets have been closed for holidays. The Hong Kong Hang Seng rose 0.6% to 29,245.26 and the Shanghai Composite Index 0.3% to 3,465.98. In Seoul, the Kospi gained 0.1% to 3,184.78. The Australian S & P / ASX 200 added 0.4% to 7,082.80.
In its latest policy update, the U.S. central bank left its short-term benchmark rate close to zero, where it has been since the pandemic erupted nearly a year ago, to help maintain low lending rates to encourage borrowing and spending. He also said he would continue to buy $ 120 billion in bonds each month to try to keep long-term lending rates low.
The 10-year Treasury yield, which affects interest rates on mortgages and other consumer loans, eased on the Fed’s statement, slipping to 1.61% from 1, 62% Tuesday night.
Stocks initially had a bump following the 2pm exit east of the Fed’s statement.
The S&P 500 lost 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday. The Dow Jones Industrial Average lost 0.5% to 33,820.38. The highly technological Nasdaq lost 0.3% to 14,051.03.
Small business stocks held up better than large companies. The Russell 2000 Index rose 0.1% to 2,304.16.
Wall Street has mostly risen in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, massive support from the U.S. government and the Fed, and a spate of encouraging economic data fuel the expectations for a stronger economy. and strong growth in corporate earnings this year.
Expectations of a strong rebound and rising prices for oil, lumber and other commodities also raised concerns about inflation and the outlook for higher interest rates. . These concerns have pushed bond yields higher.
In its remarks, the Fed noted that the economy and the labor market have “strengthened”. And, while acknowledging that inflation had increased, the central bank said it viewed the increase as transitory. Target annual inflation of 2% before considering raising rates.
Investors also focused on corporate earnings on Wednesday, with dozens of companies releasing their quarterly results.
Google’s parent company, Alphabet, rose 3% after saying its profits doubled from a year earlier. Visa rose 1.5% after posting strong financial results.
Strong Google gains helped push up communications stocks. Oil prices rose and boosted shares of energy companies, while tech and healthcare companies declined.
Investors have sanctioned several other companies whose results have been insufficient. Boeing slipped 2.9%, while Spotify fell 12.3% after the music streaming company announced that subscriber growth had slowed more than expected.
Among the biggest losers was biotech company Amgen. It fell 7.2% after its first-quarter profit and revenue fell below analysts’ expectations.
Facebook rose 5.5% in after-hours trading following the release of its latest results after the closing bell. Apple added 3.3% in extended trading after the company’s profits soared in its most recent quarter on the rise in iPhone sales.
In other trading Thursday, benchmark US crude oil rose 18 cents to $ 64.04 a barrel in electronic trading on the New York Mercantile Exchange. It gained 92 cents to $ 63.86 on Wednesday. Brent, the international standard, rose 19 cents to $ 66.97 a barrel.
The US dollar was stable at 108.61 Japanese yen. The euro rose to $ 1.2135 from $ 1.2128.
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