- The panic comes despite repeated assurances from the Federal Reserve that it will not tighten policy until inflation is permanently high.
- Attention is now being paid to the expected increase in activity as lockdown becomes easier and life becomes a sign of normalcy.
- In recent weeks, the yield on US Treasury bonds, a key leader in future rate expectations, which is at a one-year high, has shaken the equation.
HONG KONG (Reuters) – Asian investors retreated as global roller coaster rides continued on Thursday, with hopes of an inflationary vaccine winning the war.
After a year-long rally across the globe and with the lights on at the end of the epidemic tunnel, the expected increase in activity is now being considered as lockdown becomes easier and life becomes a sign of normalcy.
And there is a growing belief that a huge cost to paint-up consumers – and a stimulus package – will shed light on the prices of a rocket, forcing central banks to scrap extremely easy monetary policies. An important driver of stock growth.
In recent weeks, the yield on U.S. Treasury bond yields, a key leader in futures rate expectations, which is at a one-year high, has sent equities into a frenzy, and the pick-up on Wednesday pushed another Wall Street sink. Gave birth
The panic comes despite repeated assurances from the Federal Reserve that it will not tighten policy until inflation is permanently high and jobs are restored, and both insist that it It’s a long journey.
Fear of higher borrowing costs has been linked to the realization that price estimates may have gone too far and retreated to make a profit.
“Inflation is a concern. There’s a lot of money flowing into this system and it makes sense to make some improvements right now,” said Shana Cecil of Spotlight Asset Group.
“And increasing bond yields is a tough market approach, as the Fed has made it clear it doesn’t intend to do so.”
And Stephen Anis of ACC added that the US Federal Reserve will need to develop a more credible scenario to stem the tide of inflation and to avoid a major downturn.
“Since March 2020, the principle of free and easy money has bankrupted speculation, and that a liquid-leaning home could easily fall at the first sign of a blink of an eye.”
Reading for front leg height
After a strong performance on Wednesday, Asia is back in the red. Tokyo and Hong Kong lost nearly 2 percent, while Shanghai, Sydney, Seoul, Taipei and Manila lost more than 1 percent.
In Washington, U.S. senators are set to begin debating Biden’s stimulus, with the president banning some of the demands of the moderate Democrats and banning the number of people receiving 4,400 cash to remove top earners. What is the demand for imposition? Analysts say the decision could reduce the cost of the rescue package, but would still be more than ڈالر 1.5 trillion.
The talks came as data showed that US private wages in February created fewer jobs than expected as the country was accused of a severe freeze, leading to Friday’s government figures. The prediction seen from can not be remembered.
Still, while investor sentiment remains negative, market strategist Louis Neuler was happy.
“The fact that the stock market is stabilizing and the recent downtrend experience is refreshing, so the stock is now preparing for the next leg height,” he said in a note. “But when any market goes up, it grows faster, narrower and with a more basic focus. Money is chasing less stocks and the rising tide will no longer be able to lift all the boats.”
He added: “Things are moving fast with epidemics, stimuli and the international arena. Tomorrow, things may look very different.”
Rising oil prices boosted major gains on Wednesday, as the resumption of economies is expected to boost demand expectations and OPEC and other major producers will agree on the deal at a meeting on Thursday. Production will be increased to support hats for about a year. Market.
However, Buzzne Schildrop, chief commodity analyst at SEB Research Group, said: “There is a big difference in the ability of the oil market to absorb new volumes within this alliance.”
He added that Russia, the world’s second-largest producer, “relies on precaution” while Saudi Arabia, on the other hand, “defends increased supply”.