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Global Stock Rally Stalls; Dollar Retreats

Global Stock Rally Stalls; Dollar Retreats
(Dreamstime)

Tuesday, 09 February 2021 06:11 PM

Asian stocks looked set for a mixed start after their U.S. peers halted a six-day winning streak as investors mulled whether commitments by the Federal Reserve and the Biden administration to let the economy run hot will spark destabilizing inflation. The dollar retreated.

Futures slipped in Japan and Australian shares ticked higher. S&P 500 futures were little changed after the benchmark edged lower from an all-time high. The Nasdaq 100 Index eked out a gain, while small caps notched the longest rally since December 2019. Treasuries advanced and the dollar fell for a third straight session.

Elsewhere, oil fluctuated after seven sessions of gains on signs the global market is tightening and demand is improving. Bitcoin pulled back from a record it reached after Tesla Inc. bought $1.5 billion of the cryptocurrency.

Elevated valuations are giving investors pause as they cheer advancing vaccination efforts, rising stimulus prospects and a slowdown in coronavirus infections across the globe. A ramp up in inflation expectations has also highlighted a debate about whether the so-called reflation trade in bonds could create jitters for global equities trading near record highs.

“A pullback here could give tactical opportunities to those who were looking to get involved,” Mona Mahajan, investment strategist at Allianz Global Investors, said on Bloomberg TV. “It seems like right now the story is just getting started, and the momentum is building behind it, and that story includes the reopening, vaccines, the downward trend now in some of the virus cases we’ve been seeing, supported by the stimulus talks and the Federal still on the side lines. This is a market thus far that hasn’t really shown any inkling of wanting to take a 5 or 10 percent correction.”

Here are some key events coming up:

  • Earnings season continues with companies including Societe Generale and L’Oreal.
  • EIA crude oil inventory report comes Wednesday.
  • Sweden will set monetary policy on Wednesday.
  • Federal Reserve Chair Jerome Powell will speak on a webinar Wednesday.
  • The U.S. consumer price index comes Wednesday.
  • Lunar New Year public holidays begin in nations across Asia, with China breaking for a week.
  • Bank of Russia’s policy decision comes Friday.

© Copyright 2021 Bloomberg News. All rights reserved.


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Asian stocks looked set for a mixed start after their U.S. peers halted a six-day winning streak as investors mulled whether commitments by the Federal Reserve and the Biden administration to let the economy run hot will spark destabilizing inflation. The dollar...
BUSINESS, CMD, COS, DIGITALCUR, DRG, EXE, FRX, GEN, GLOBALMACR, GOV, HEA, INDUSTRIES, JAPAN, MARKETS, NORTHAM, NRG, OIL, STK, TEC, TECSVC, US, WORLD, WRP
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2021-11-09
Tuesday, 09 February 2021 06:11 PM
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