European stock futures and Asian stocks declined as investors turned their focus to Nvidia Corp.’s upcoming earnings report. US futures were mixed while U.S. 10-year Treasury bond futures stabilized. The Bloomberg Commodity Spot Index hit its highest level since January 2023 on Monday, with gold and copper trading near all-time highs and wheat prices rising.
After seven days of gains, Asian stocks took a breather, with Li Auto Inc. leading losses on the MSCI Asia Pacific Index. Australia and Japan also saw declines in their stock markets. Most currencies in the region weakened against the dollar.
Investors are now looking toward Nvidia’s earnings report to gauge the growth potential in the artificial intelligence sector. In China, economic struggles persist, particularly evident in the real estate sector where there is little sign of improvement. Local governments are facing fiscal strains as land sales revenue hit an eight-year low last month.
The Bloomberg Dollar Spot Index rose as investors closely monitored the cautious stance of Federal Reserve officials. The recent uptick in U.S. yields has led to speculation of a rally for the dollar against Asian currencies.
JPMorgan Chase & Co.’s Marko Kolanovic maintained a bearish outlook on the stock market, advising clients against buying shares. Meanwhile, Australia’s central bank revisited discussions on raising interest rates but ultimately decided to hold firm to prevent excessive tightening. The Australian dollar weakened against the greenback.
Samsung Electronics Co. announced a change in leadership for its semiconductor division as the company aims to catch up with competitors in the field of AI. Cryptocurrency prices rose amid optimism about U.S. approval of exchange-traded funds investing in Ether.
Key events this week include various speeches from Federal Reserve officials, US economic data releases, Nvidia earnings report, Eurozone PMI data, and the G-7 financial meeting in Italy.
In the stock market, S&P 500 and Nasdaq 100 futures were relatively stable while Japan’s Topix, Australia’s S&P/ASX 200, Hong Kong’s Hang Seng, and China’s Shanghai Composite saw varied movements. In the cryptocurrency space, Bitcoin and Ether prices rose. Bond yields remained largely unchanged, and raw material prices fluctuated.
Overall, market sentiment remains cautious, with investors closely watching upcoming events and economic data releases for further direction.
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https://finance.yahoo.com/news/asian-stocks-look-mixed-traders-223433690.html
