(Bloomberg) — Lightly traded Asian stocks rose most of the holiday, but U.S. stock futures were flat as investors waited for news of a bid for First Republic Bank.
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Japan’s TOPIX benchmark rose 1% to close at its highest level since September 2021, with all sectors up. Australian shares also rose as other major stock exchanges including Hong Kong, mainland China, Singapore and South Korea closed trading for Labor Day. Many markets in Europe will also be on holiday.
US futures activity was tempered to contain weekly gains and back-to-back monthly gains following Friday’s 0.8% jump in the S&P 500. The CBOE volatility index fell below 16 points for the first time since November 2021 as strong corporate earnings boosted sentiment.
But the future of First Republic Bank weighed on the market. Regulators worked in Washington until Sunday evening after asking banking groups including JPMorgan Chase & Co. and PNC Financial Services Group Inc. to submit bids for distressed lenders.
US Treasuries fell slightly after Friday’s gains. His 10-year bonds in Australia and New Zealand were flat. The yen fell while the US dollar and Australian dollar rose. Bitcoin’s sudden drop has pushed the cryptocurrency further below $30,000 after this year’s annual rally.
Interest rate decisions will be the focus this week. The Federal Reserve is expected to raise borrowing costs by 25 basis points to a range of 5% to 5.25%. This is a level not seen since 2007. The European Central Bank is also expected to raise key lending rates by 25 basis points. The Reserve Bank of Australia is likely to keep rates on hold at its Tuesday meeting.
“The earnings season shows that market demand, a key driver of inflation, remains very strong,” IG Markets analyst Hebe Chen said in an interview with Bloomberg Television. . The Fed also downplayed the chances of interest rates falling later this year, saying it “could put a cap on unrealistic expectations of rate cuts.”
Apple is headlining another busy week of earnings, including Advanced Micro Devices and Ford Motor Company. In Asia, banks including HSBC Holdings and Macquarie Group will release earnings reports. In Europe, Volkswagen AG and energy giants BP Plc and Shell Plc are on the agenda.
Elsewhere, oil prices fell and gold fell.
Here are some of the major moves in the market.
stock
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S&P 500 futures were little changed as of 3:18 pm Tokyo time. S&P 500 rose 0.8% on Friday
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Nasdaq 100 futures rose 0.1%.Nasdaq 100 up 0.7%
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Hang Seng futures up 1%
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Japan’s TOPIX index rises 1%
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The Australian S&P/ASX 200 rose 0.3%.
currency
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The Bloomberg Dollar Spot Index rose 0.1%.
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Euro fell 0.2% to $1.1001
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Japanese yen fell 0.5% to 136.93 yen to the dollar
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Offshore yuan fell 0.2% to 6.9432 to the dollar
Cryptocurrency
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Bitcoin fell 2.8% to $28,518.65
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Ether fell 2.5% to $1,845.65
bonds
merchandise
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West Texas Intermediate crude fell 0.9% to $76.07 a barrel
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Spot gold fell 0.4% to $1,981.63 an ounce
This article was produced in partnership with Bloomberg Automation.
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