Asia Stocks to Open Steady; Aussie Dollar Declines: Markets Wrap

(Bloomberg) — Asia stocks look set to trade cautiously at the open Monday as investors assess the pace of economic recovery. The Australian dollar slipped amid a virus lockdown in the biggest city.

Futures were little changed in Australia, Japan and Hong Kong. Australian shares will be closely watched after Sydney went into a two-week lockdown to stem a resurgence of Covid-19. The S&P 500 had its best week since February, with financial and retail shares beating the technology giants that outperformed at the height of the pandemic. Treasuries retreated.

Bitcoin rose in early Asian trading, but cryptocurrencies will be closely watched after the U.K. banned crypto exchange Binance from doing business in the country.

Global stocks ended last week at a record high as anxiety about the Federal Reserve’s hawkish tilt eased, with investors dialing back concerns that U.S. policy makers will rush to boost interest rates despite mounting inflation pressures. Volatility receded, with the Cboe Volatility Index, or the VIX, sinking to pre-pandemic levels.

Data Friday showed personal spending stagnated in May, while a closely watched inflation measure continued to climb. Meantime, U.S. consumer sentiment rose in June by less than forecast and longer-term inflation expectations moderated from a month earlier.

Here are some events to watch in the markets this week:

Reserve Bank of Australia Governor Philip Lowe addresses a banking summit in Sydney TuesdayOECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation WednesdayChina’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party ThursdayOPEC+ ministerial meeting ThursdayECB President Christine Lagarde speaks FridayThe U.S. jobs report is forecast to show an acceleration in payrolls growth in June Friday

For more market commentary, follow the MLIV blog.

These are some of the main moves in markets:

Stocks

The S&P 500 rose 0.3% FridayThe Nasdaq 100 fell less than 0.1%Nikkei 225 futures fell 0.1%Australia’s S&P/ASX 200 Index futures were little changedHang Seng Index futures rose 0.1% earlier

Currencies

The yen was little changed at 110.78 per dollarThe offshore yuan was at 6.4600 per dollarThe Bloomberg Dollar Spot Index was little changed FridayThe euro was little changed at $1.1935The Aussie dropped 0.2% to 75.78 U.S. cents

Bonds

The yield on 10-year Treasuries advanced three basis points to 1.52% Friday

Commodities

West Texas Intermediate crude rose 1% to $74.05 a barrel FridayGold was at $1,781.43 an ounce

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