Equity markets hitch a Wall Street ride
Wall Street put on another strong show overnight, as equity markets settled down and got back to business as usual. This meant a return to the myopic theme of US fiscal largesse and the global economic recovery. The Reddit frenzy appeared to be running its course overnight as clearinghouses squeezed collateral requirements for enabling brokers. GameStop fell sharply, along with some of the Spanish Revolution’s other favoured stocks. From here, obscurity beckons, especially with Treasury Secretary Yellen summoning stakeholders for a fireside chat about the whole business. This means that markets have gone back to business as usual, focusing on Biden’s stimulus package as it makes its way through the US Senate.
Wall Street was in positive territory on Tuesday. The S&P 500 rose 1.39%, with the Nasdaq climbing 1.56% and the Dow Jones rising 1.58%. The futures on all three remain in positive territory this morning, allowing Asia to shrug off the surprisingly weak Caixin Services PMI data from China.
The Nikkei 225 has risen 0.80%, with the Kospi 0.35% higher. In China, markets showed some initial hesitancy after the PMI data and a net withdrawal of liquidity by the PBOC. They have managed to shrug that off though, the Shanghai Composite and CSI 300 rising 0.55%. Hong Kong, meanwhile, has seen China retail profit-taking after Alibaba’s results, pushing the Hang Seng 0.75% lower.
Singapore has risen 0.60%, with Taipei climbing 0.95% and Kuala Lumpur increasing 0.50%. Jakarta has jumped 1.10%, with Bangkok 0.75% higher. Australian markets are ignoring weaker commodity prices, for now, the ASX 200 rallying by 1.20%, and the All Ordinaries climbing 0.85%.
European markets are likely to open higher again, despite pan-Europe Services PMI data that will inevitably be on the weaker side, and signs of rising inflation in the eurozone. Until they aren’t, the US stimulus and global recovery themes are back in the driver’s seat.
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