Markets Wrap: Biden’s Infrastructure Plan Sees Asian Equities to Open Steady

US equities had a mixed session overnight. The S&P climbed 0.36% while technology stocks outperformed, sent Nasdaq 1.54% higher. The Dow Jones Industrial Average fell 0.26%. Futures in Asia are set to open steady as traders assessed Joe Biden’s infrastructure plan.

According to Ania Aldrich, investment principal at Cambiar Investors LLC suggested that there is still some room for growth in stocks that will benefit in an economic recovery which hasn’t reflected in earnings yet.

The US 10-year yields continued their rise on Wednesday, rose by 1 point to near 1.74%. The US 2-year yields lifted by 1 point to near 0.15%. 

Global oil eased off on Wednesday after no additional output plans were signalled in the lead-up to Thursday’s OPEC+ meeting. Brent crude fell 1.73% to $US63.03 per barrel. WTI crude fell 1.73% to $US59.5 per barrel.

The dollar weakened against major currencies on Wednesday. EURUSD rose from lows around $1.1704 to highs near $1.1760. AUDUSD was mostly flat and closed around $0.7593. The Japanese yen (USDJPY) rose against the dollar from lows near 110.93 yen per dollar to lows near 110.41 yen per dollar. 

Gold futures lifted $30 to $1715.6 an ounce. Iron ore fell by $1.8 to near $164.75 a tonne after China announced potential tax charges on the steel industry.

Key events this week:

  • AU Retail Sales and Trade Balance (Thursday)
  • OPEC Meeting (Thursday)
  • US Employment Date (Friday)

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