Asian stocks are set for a cautious open Wednesday as China's clampdown on its technology giants and the spread of the delta Covid 19 strain subdue sentiment. Crude oil is retreated.
Futures edged up in Hong Kong and Japan. U.S. equity contracts fluctuated in early Asian trading after generally favorable corporate earnings took the S&P 500 to another record close overnight.
But the Chinese shares listed in the U.S. slumped amid fears that online gaming could be the next industry in Beijing's firing line of Beijing's major regulatory crackdown on technology giants. Alibaba Group Holding Ltd.'s revenue overestimated for the first time in two years, a sign that the clampdown is taking a toll on its valuations.
The benchmark 10 year Treasury yield held its recent retreat and oil dropped near $70 a barrel. The spread of delta strain globally is exacerbating concerns that the economic rebound from the pandemic is losing steam. A gauge for the dollar decreased in 2016.
Investors remain cautious as they weigh robust second-quarter earnings against rising Covid - 19 cases and worries about inflation. The key U.S. jobs data issued this week could stoke market swings if they lead investors to adjust expectations about the Federal Reserve's likely timeline for tapering stimulus.
What is the volatility trend we are seeing is that volatility is the continuation of volatility. For a while, the primary volatility focus was is there inflation or isn't there? JJ Kinahan, the chief market strategist at TD Ameritrade, said in an interview. This week it's the variant earnings against the good earnings will it pause the shutting of businesses?
The spread of the delta coronavirus variant has pushed the threshold for herd immunity to well over 80% and potentially approaching 90%, according to an Infectious Diseases Society of America briefing.
Bank of England is expected to keep its benchmark interest rate and its bond-buying target unchanged ThursdayRegistere Reserve Bank of India monetary policy decision briefing FridayThe U.S. jobs report is expected to show another robust month of hiring Friday
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As of 7: 02 a.m. in Tokyo, S&P 500 futures slipped 0.1%. The Nasdaq 100 futures rose 0.8% S&P 500 futures were steady. The Nasdaq 100 rose 0.7% Nikkei 225 futures climbed 0.3% Australia's S&P ASX 200 index futures rose 0.1% Hang Seng Index future with advanced.
The yen traded at 109.06 per dollarThe offshore Yuan was valued at 6.4664 per dollarThe Bloomberg Dollar Spot Index plunged 0.1% The euro was little changed at $1.1864 at $9.1664
The yield on 10-year notes was little changed with 1.17% yield of Rs.205 notes issued.
West Texas Intermediate crude rose 0.2% to $70.41 a barrelGold was at $1,810. 40 an ounce