Asia Stocks to Start Week Higher; Bonds Decline: Markets Wrap

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(Bloomberg) — Asia stocks are poised to begin the week greater as financiers weigh business incomes versus issues about inflation and the financial healing.

Futures increased in Japan, Australia and Hong Kong. U.S. agreements edged up as stocks born down Friday, with the S&P 500 chalking its finest week considering that July as incomes buoyed belief. 

Bond yields in New Zealand and the kiwi dollar acquired after New Zealand’s inflation sped up to the fastest speed in ten years. Yields on Australia’s three-year bond rose more than 10 basis points. Treasury yields got on Friday. The dollar was blended versus its significant peers.

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China’s third-quarter gdp due Monday along with month-to-month commercial and financial investment information will be carefully seen to evaluate the intensity of electrical energy scarcities. On the other hand, Individuals’s Bank of China Guv Yi Gang stated authorities can include dangers positioned to the Chinese economy and monetary system from the battles of China Evergrande Group.

Energy prices extended their advance with crude oil rising above $83 a barrel to the highest since 2014. Brent topped $85 a barrel, the highest since 2018. Bitcoin pushed above $60,000 as the first U.S. Bitcoin futures ETF may debut Monday. 

“It’s not only that the market is pricing that growth might be accelerating in Q4, but also that some of the supply bottleneck issues have started to peak,” Charles-Henry Monchau chief investment officer at Bank SYZ, said on Bloomberg Television. “This is why you have this risk-on sentiment in the market.”

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Despite the risk-on tone, investors continue to grapple with worries about inflation amid surging energy shortages that are prompting more production cuts. At the same time, the economic recovery remains patchy while central bankers are inching closer to paring back stimulus. U.S. consumer sentiment fell unexpectedly in early October, but retail sales advanced. 

Bank of England Guv Andrew Bailey stated the central bank will “have to act” to curb inflationary forces and warning higher energy costs mean price pressures will linger. Mohammed El-Erian, the chief economic adviser at Allianz SE and a Bloomberg columnist, said investors should prepare for increased market volatility if the Federal Reserve pulls back on stimulus measures set in motion by the Covid-19 pandemic.

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Among U.S. earnings, Goldman Sachs Group Inc., Charles Schwab Corp. and Alcoa Corp. reported positive results. 

For more market analysis, read our MLIV blog.

Events to watch this week:

Earnings roll in, including from AT&T Inc., Barclays Plc, Johnson & Johnson, Netflix Inc. and Tesla Inc.China releases retail sales, industrial production, GDP data, MondayBank Indonesia rate decision and briefing, TuesdayChina’s NPC Standing Committee starts a meeting Tuesday that goes on through Oct. 23. A review of anti-monopoly regulations is on the agendaU.S. housing starts, TuesdayEIA crude oil inventory report, WednesdayChina property costs, loan prime rates, WednesdayU.S. Conference Board leading index, U.S. existing home sales, jobless claims, ThursdayFed Chair Jerome Powell takes part in policy panel discussion, Friday

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Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 7:17 a.m. in Tokyo. The S&P 500 rose 0.8%Nasdaq 100 futures gained 0.1%. The Nasdaq 100 rose 0.6%Nikkei 225 futures added 0.3%S&P/ASX 200 Index futures gained 0.4%Hang Seng Index futures climbed 0.6% earlier

Currencies

The Japanese yen was at 114.33 per dollar, down 0.1%The offshore yuan was at 6.4337 per dollarThe Bloomberg Dollar Spot Index fell 0.1%The euro was at $1.1603

Bonds

The yield on 10-year Treasuries advanced six basis points to 1.57%Australia’s 10-year government bond yield jumped about nine basis points to 1.74%

Commodities

West Texas Intermediate crude rose 1.1% to $83.17 a barrelGold was at $1,766.57 an ounce

©2021 Bloomberg L.P.

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Jobber Wiki author Frank Long included to this report.