Dollar Extends Gains; Stocks, Futures Fluctuate: Markets Wrap

(Bloomberg) -- The dollar rebound extended Wednesday as it pushed past key technical resistance. Asian stocks fluctuated with U.S. futures as investors mulled remarks from Federal Reserve officials that pointed to a slow economic recovery.Shares fell in Japan as traders returned from a holiday, while South Korean equities also declined. Nasdaq futures dipped after disappointment from Tesla Inc., while S&P 500 contracts were little changed. Australian stocks climbed, while the Aussie slipped with bond yields after a prominent economist projected the central bank will reduce interest rates next month. The offshore yuan retreated following a weaker-than-anticipated daily currency fixing.U.S. shares reversed earlier losses Tuesday which came after Fed Chairman Jerome Powell said the economy has a long way to go before fully recovering and will need further support. Meanwhile, Chicago Fed President Charles Evans noted that rates could rise before the inflation target is reached. Crude oil dipped and Treasuries were steady.Global stocks are on track for their first monthly drop since March on the lack of another U.S. fiscal stimulus package and an increase in global virus cases that has raised the specter of more lockdowns. British Prime Minister Boris Johnson announced new restrictions that are likely to last six months and told people to work from home if possible, saying the country is at a “perilous turning point” for the virus.”This is a massive roller coaster and you just have to hold your stomach,” Erin Gibbs, president and CEO of Gibbs Wealth Management, said on Bloomberg TV. “We are most likely to see this continued high volatility” until the U.S. election in November, she said.These are some events to watch this week:Powell appears before the House Select Subcommittee on the coronavirus to discuss the central bank’s response on Wednesday.U.S. initial jobless claims are due Thursday.These are some of the main moves in markets:StocksFutures on the S&P 500 were little changed as of 11:13 a.m. in Tokyo. The gauge advanced 1.1% on Tuesday.Topix index fell 0.6%.Hong Kong’s Hang Seng slipped 0.3%.Shanghai Composite rose 0.1%.Australia’s S&P/ASX 200 Index gained 1.9%.South Korea’s Kospi index fell 1%.Euro Stoxx 50 futures rose 0.4%.CurrenciesThe yen fell 0.2% to 105.16 per dollar.The Bloomberg Dollar Spot Index climbed 0.2%.The euro bought $1.1684, down 0.2%.The offshore yuan lost 0.2% to 6.7957 per dollar.The Aussie fell 0.5% to 71.35 U.S. cents.BondsThe yield on 10-year Treasuries held at 0.67%.Australia’s 10-year bond yield fell about four basis points to 0.79%.CommoditiesWest Texas Intermediate crude fell 0.9% to $39.45 a barrel.Gold was at $1,902 an ounce, little changed.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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