Most Asian index futures rose, signaling stocks may track a rebound in
U.S. shares before the Federal Reserve reports on monetary policy. The
euro held declines as the standoff between Greece and its creditors
intensified, while oil extended gains ahead of stockpiles data.
Futures on equity gauges from Japan to Hong Kong advanced in most recent trading, with contracts on the Standard & Poor’s 500 Index little changed by 7:50 a.m. Tokyo time. The index added 0.6 percent Tuesday to trade above its 100-day average. The euro was steady at $1.1247 following a 0.3 percent retreat, while Australian bonds rose. U.S. oil was above $60 a barrel with industry data indicating another week of supply declines.
The Fed concludes its two-day policy meeting Wednesday, amid speculation mixed U.S. economic data and the deadlock over Greece may complicate the central bank’s drive to hike interest rates. Greece’s prime minister accused the International Monetary Fund of “criminal” responsibility for the indebted nation’s situation, with euro-area finance ministers to meet Thursday for further discussions over a bailout deal. European inflation data is due, along with a trade report from Japan.
“The Fed will be as dovish as they can be given what’s going on with Greece,” said Thomas Di Galoma, head of fixed-income rates and credit at ED&F Man Capital Markets in New York. “Investors are a little apprehensive about Greece. There hasn’t been any good news.”
Traders are now putting odds of a September rate hike at 47 percent, down from 53 percent as recently as Friday, data compiled by Bloomberg show. Fed Chair Janet Yellen may provide further clues at a press conference Wednesday. Treasuries extended gains Tuesday, with 10-year yields down five basis points, or 0.05 percentage point, to 2.31 percent.
Futures on Japan’s Nikkei 225 Stock Average added 0.2 to 20,270 percent by 3 a.m. in Osaka, while yen-denominated contracts traded in Chicago were little changed at 20,285 after slipping 0.3 percent in the previous session. The yen was little changed at 123.39 per dollar.
Australian S&P/ASX 200 Index futures jumped 0.8 percent in most recent trading, while contracts on the Kospi index in Seoul added 0.3 percent. Futures on the Hang Seng Index in Hong Kong increased 0.3 percent as those on the Hang Seng China Enterprises Index rose 0.4 percent. Singapore-traded contracts on the FTSE China A50 Index dropped 0.1 percent.
The Bloomberg Dollar Spot Index, a gauge of the U.S. currency versus 10 major counterparts, fell 0.1 percent Wednesday after seesawing most of this week. New Zealand’s dollar was at 69.91 U.S. cents following a 0.2 percent decline Tuesday after prices for whole milk powder dropped at a global auction. New Zealand, the world’s biggest dairy exporter, also reported a narrower-than-projected current-account deficit for the first quarter.
The MSCI Emerging Markets Index declined 0.5 percent Tuesday to close at its lowest level since March 27, while MSCI’s Asia Pacific Index was down 0.7 percent in a second day of losses.
West Texas Intermediate crude added 0.2 percent to $60.07 a barrel after snapping a three-day drop, rising 0.8 percent on Tuesday. U.S. oil inventories probably fell for a seventh week as refiners prepared to meet higher fuel demand in the summer, according to a Bloomberg survey of analysts before an Energy Information Administration report Wednesday.
Supplies dropped by 2.9 million barrels through June 12, the industry-funded American Petroleum Institute was said to have reported late Tuesday.
Futures on equity gauges from Japan to Hong Kong advanced in most recent trading, with contracts on the Standard & Poor’s 500 Index little changed by 7:50 a.m. Tokyo time. The index added 0.6 percent Tuesday to trade above its 100-day average. The euro was steady at $1.1247 following a 0.3 percent retreat, while Australian bonds rose. U.S. oil was above $60 a barrel with industry data indicating another week of supply declines.
The Fed concludes its two-day policy meeting Wednesday, amid speculation mixed U.S. economic data and the deadlock over Greece may complicate the central bank’s drive to hike interest rates. Greece’s prime minister accused the International Monetary Fund of “criminal” responsibility for the indebted nation’s situation, with euro-area finance ministers to meet Thursday for further discussions over a bailout deal. European inflation data is due, along with a trade report from Japan.
“The Fed will be as dovish as they can be given what’s going on with Greece,” said Thomas Di Galoma, head of fixed-income rates and credit at ED&F Man Capital Markets in New York. “Investors are a little apprehensive about Greece. There hasn’t been any good news.”
Odds Pared
The U.S. central bank meets as data continues to show uneven gains in the U.S. economy after a first-quarter slowdown. A report Tuesday indicated builders in the U.S. began work on fewer houses in May following a surge the prior month. That followed a disappointing factory report on Monday that helped send stocks lower.Traders are now putting odds of a September rate hike at 47 percent, down from 53 percent as recently as Friday, data compiled by Bloomberg show. Fed Chair Janet Yellen may provide further clues at a press conference Wednesday. Treasuries extended gains Tuesday, with 10-year yields down five basis points, or 0.05 percentage point, to 2.31 percent.
Futures on Japan’s Nikkei 225 Stock Average added 0.2 to 20,270 percent by 3 a.m. in Osaka, while yen-denominated contracts traded in Chicago were little changed at 20,285 after slipping 0.3 percent in the previous session. The yen was little changed at 123.39 per dollar.
Australian S&P/ASX 200 Index futures jumped 0.8 percent in most recent trading, while contracts on the Kospi index in Seoul added 0.3 percent. Futures on the Hang Seng Index in Hong Kong increased 0.3 percent as those on the Hang Seng China Enterprises Index rose 0.4 percent. Singapore-traded contracts on the FTSE China A50 Index dropped 0.1 percent.
Biggest IPO
Hong Kong lawmakers start debating a China-backed plan Wednesday for the first popular election of the chief executive, set for 2017. Demonstrators occupied Hong Kong’s streets about eight months ago in protest against China’s involvement in the process. Guotai Junan Securities Co., China’s largest brokerage, announced plans Tuesday to raise $4.8 billion in what would be the country’s biggest initial public offering since 2010.The Bloomberg Dollar Spot Index, a gauge of the U.S. currency versus 10 major counterparts, fell 0.1 percent Wednesday after seesawing most of this week. New Zealand’s dollar was at 69.91 U.S. cents following a 0.2 percent decline Tuesday after prices for whole milk powder dropped at a global auction. New Zealand, the world’s biggest dairy exporter, also reported a narrower-than-projected current-account deficit for the first quarter.
European Assets
Five-year credit default swaps on Greek debt put the chance of the country failing to adhere to its commitments at 83 percent, up from 79 percent on Friday. Lower-rated securities in the euro area underperformed Tuesday as concerns over Greece bolstered investors’ perception of relative risk. Greece’s ASE Index fell 4.8 percent, completing the biggest three-day drop since anti-austerity party Syriza took charge of the government in January.The MSCI Emerging Markets Index declined 0.5 percent Tuesday to close at its lowest level since March 27, while MSCI’s Asia Pacific Index was down 0.7 percent in a second day of losses.
West Texas Intermediate crude added 0.2 percent to $60.07 a barrel after snapping a three-day drop, rising 0.8 percent on Tuesday. U.S. oil inventories probably fell for a seventh week as refiners prepared to meet higher fuel demand in the summer, according to a Bloomberg survey of analysts before an Energy Information Administration report Wednesday.
Supplies dropped by 2.9 million barrels through June 12, the industry-funded American Petroleum Institute was said to have reported late Tuesday.
