SYDNEY Reuters- Asian shares tried to maintain a rare rally on Monday as Wall Street futures made early gains, perhaps hoping a U.S. holiday would give a break from recent selling, but worries about the global recession were never far away.
The euro was soft after French President Emmanuel Macron lost control of the National Assembly in the Sunday election, a major setback that could throw the country into political turmoil.
Nasdaq futures made an increase of 1.0%, while S&P 500 futures bounced 0.6%. Both of them recently have had a habit of gaining in Asia only to turn tail once London and New York are open.
The S&P 500 fell by almost 6% last week to trade 24% below its January high. This was the 20th bear market in the past 140 years, and the average peak to trough bear decline was 37.3%, according to analysts at BofA.
It would not end until October 2022 and investors will be hoping it doesn't match the average duration of 289 days.
The broadest index of Asia-Pacific shares outside Japan edged up 0.1% in thin trade. Tokyo's Nikkei was up 0.6%, after a sharp fall in the yen recently boosted exporters.
President Joe Biden was considering removing some tariffs on China and a possible pause on the federal gas tax to fight inflation, as well as a possible pause on the federal gas tax.
Major central banks will have to tighten so aggressively to contain runaway inflation that will tip the world into a recession, as a result of the markets being looming.
Market volatility has remained elevated with the VIX index seeing the highest weekly close since April, a theme that goes beyond equities with a spike in FX and rates volatility alongside wider credit spreads, said Rodrigo Catril, a strategist at NAB.
At this stage, it is hard to see a turn in fortunes until we see evidence of a material ease in inflationary pressures. Relief seems unlikely this week, with U.K. inflation figures expected to show another alarmingly high reading that could push the Bank of England into hiking at a faster pace.
A whole chorus line of central bankers are on the speaking calendar this week, led by a likely hawkish testimony from Federal Reserve Chair Jerome Powell to the House on Wednesday and Thursday.
The Fed pledged last week to containing inflation, while the Fed Governor Christopher Waller said on Saturday that he would support another hike of 75 basis points in July.
The dollar is up 104.680 and near the two-decade high of 105.790 last week, despite the hawkish promise of keeping it up at 104.680.
The euro was a fraction lower after the French election at $1.0488, still uncomfortably close to the trough of $1.0357 last week.
The Bank of Japan stuck to its super-easy policies even as all its developed world peers took measures to tighten, despite the fact that the yen was under broad pressure. The dollar was close to 135.36 yen, having reached its highest since 1998 last week.
The strength in the dollar has kept gold in a tight sideways pattern for the past month or so, and it was last stuck at $1,838 an ounce. GOL Oil prices went up early on Monday after a retreat late last week due to concerns that high energy prices were adding to the risks of a global recession that would ultimately curb demand. O R Brent fell 69 cents to $113.81, while U.S. crude added 80 cents to $110.36 per barrel.