Markets today see China return to trading after closing days for holidays and are affected by the agreement reached in the US to avert the imminent default.
Markets Today : Most Asian stocks are up, helped by a rise in Chinese equities and easing of US debt ceiling concerns .
The Treasury yields remain at high levels and are waiting for the results on the US unemployment rate, which is indicative about the next Fed move.
Price pressures, with soaring energy costs, the possibility of Federal Reserve tapering and the Evergrande case with its billions of debt keep the tension high among investors.
In this context, let’s see what happens in the markets today .
Markets: positive China, USA avoid default
The Asian markets today see the return to trade in China, closed for holidays until yesterday.
At around 8.19 am, the Nikkei gained 1.34% and the Shenzhen and Shanghai incidence are up by 0.85% and 0.58% respectively. Hong Kong is also above par, while Kospi and Taiwan are in the red.
Activity in China’s service sector grew in September, according to data from a private survey today. The Caixin / Markit Service Purchasing Managers Index (PMI) climbed to 53.4 from 46.7 in August, recovering from the lowest level seen since the peak of the pandemic last year, according to Reuters. The 50-point mark separates growth from contraction.
In China, however, the spotlight remains on the Evergrande issue , with investors waiting to see if regulators will act to contain possible contagion from the giant’s liquidity crisis. The next deadline for the payment of another coupon is 12 October.
In the meantime, relaxing news has come from the US on the complex issue of the failure to agree to suspend or increase the debt ceiling. The Senate passed legislation to temporarily raise the federal government debt limit of $ 28.4 trillion and avoid the risk of a historic default later this month.
What are the markets watching?
The 10-year US Treasury bond yield peaked since June. Remained little changed at 94.206, not too far from the 12-month high of 94.504 reached at the end of September, as traders wait for trades. employment data.
Investors are worried about inflation amid a global energy crisis, and the US payroll report on Friday could cement expectations that the Federal Reserve will soon begin reducing bond purchases.