Everything you need to know to start trading on June 21
Asian stocks slipped on Monday after traders depreciated on reflation trade following a hawkish Federal Reserve pivot. A dollar gauge was stable.
Shares fell in Japan, Australia and South Korea. The Singapore-traded SGX Nifty, an early indicator of the performance of India’s Nifty 50 index, fell 1.01% to 15,591 by 7 a.m.
The Nikkei 225 fell as much as 3%, the biggest drop in more than a month. U.S. futures fell after the S&P 500 pulled out on Friday, when commodities such as copper fell and the dollar hit a two-month high on the prospect of less accommodative U.S. monetary policy.
The 10-year rate fell to 1.42% and the 30-year rate fell below 2%. Short-term yields surged after Fed official James Bullard said inflation risks could justify higher interest rates next year, a take-off earlier than expected by many of its colleagues.
Gold has stabilized after falling last week. Oil soared to around $ 72 a barrel as talks between world powers and Iran dragged on, potentially delaying the return of the latter’s energy exports.
In a light week for economic data, traders will pay close attention to appearances by Fed policymakers, including Chairman Jerome Powell, for any guidance on retreating the stimulus. In his comments, Bullard also said the central bank has started discussing reducing asset purchases.