GLOBAL MARKETS-Asia stocks prepare for slow start after Wall Street retreats from all-time highs

April 7 (Reuters) – Asia stocks are set to open slowly on Wednesday after Wall Street rebounded from all-time highs reached in previous sessions as investors look to the upcoming earnings season for more signs. recovery after strong US economic data.

All three major Wall Street indices closed lower on Tuesday, a day after the S&P 500 and Dow rose to record highs fueled by optimism from a higher-than-expected jobs report last Friday and data that show dramatic rebound in US service industry Monday.

Investors also weighed in on the latest US job vacancy report, which showed on Tuesday that vacancies rose to a two-year high in February, while hiring posted its biggest gain in nine months amid a rise in job vacancies. COVID-19 vaccines and an additional stimulus from the government.

“We’ve had a few big bullish days in a row and I think the markets are looking to take a little pause here,” said Charlie Ripley, vice president of portfolio management at Allianz Investment Management in Minnesota. “From an economic data perspective, we didn’t get much information, except for the job opening report and the market prices reflect it.”

Japan’s Nikkei 225 futures were down 0.1%, while Australia’s S & P / ASX 200 futures were up 0.04%.

The International Monetary Fund raised its global growth forecast to 6% this year from 5.5%, reflecting a rapidly improving outlook for the US economy.

With the upcoming earnings season expected to show S&P earnings growth of 24.2% over the prior year, according to Refinitiv data, investors will be watching to see if corporate results further confirm recent data. positive economics.

“We are heading into earnings season and we will see better how companies performed in the first quarter even as we emerge from the pandemic,” Ripley said.

On Wall Street, the Dow Jones Industrial Average fell 0.29% to 33,430.24, the S&P 500 lost 0.10% to 4,073.94 and the Nasdaq Composite fell 0.05% to 13,698.38.

US Treasury yields fell, with 5-year notes leading the decline, on investor views that market prices based on an earlier-than-expected adjustment by the US government. Fed were too aggressive.

Benchmark 10-year notes last rose 18/32 in price to yield 1.6578%, from 1.72% late Monday.

The dollar fell to a two-week low against a basket of world currencies, and traders took advantage of its strong performance in March as falling Treasury yields put pressure on the dollar.

The dollar index fell 0.259%, while the euro was down 0.05% to $ 1.1869. The Korean won strengthened 0.08% against the dollar at 1,118.21 per dollar.

Crude oil prices partially recovered from the previous session’s losses, driven by strong data from the United States and China.

US crude gained 1.16% to settle at $ 59.33 per barrel, and Brent closed at $ 62.74 per barrel, up 0.95% on the day.

Report from Chibuike Oguh in New York; Edited by Christopher Cushing


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