Currencies were steady early Monday and Asian stocks looked set for a muted open after U.S. equities chalked another week of fresh gains. The dollar is trading near a two-year low against major peers.
In Japan, investors will be alert as the race to replace Japan’s Prime Minister Shinzo Abe gets underway. Chinese manufacturing data will give the latest reading on how the world’s second-largest economy is emerging from the coronavirus shutdown. The benchmark S&P 500 closed at an all-time high for a sixth consecutive trading session Friday, while the Nasdaq Composite also reached unseen levels. Treasuries rose.
Global equities have been on a tear as economies started to reemerge from virus shutdowns and central banks remained committed to providing liquidity to help a recovery. Chair Jerome Powell signaled on Thursday that the Federal Reserve will stay accommodative for longer through more tolerance toward consumer-price increases.
On the virus front, cases in the U.S. are ticking up again. India recorded its biggest daily spike as Covid-19 infections worldwide surpassed 25 million.
78,761 in IndiaMost new cases today
+2% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.011 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
5.4% Global GDP Tracker (annualized), July