Treasury Yields Extend Retreat; Asian Stocks Slip: Markets Wrap

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(Bloomberg) — Treasury yields retained their recent declines amid optimism the American economy will continue to benefit from government support. Asian shares opened with small losses.

Treasuries saw strong demand for a second consecutive day at a government debt sale, helping to send yields down from the highest levels since March. Stocks slipped in Tokyo, Sydney and Seoul. Shares of Alibaba Group Holding Ltd. and Tencent Holdings Ltd. surged in U.S. trading after Dow Jones reported the Chinese tech giants will be spared from a U.S. investment ban. S&P 500 contracts edged higher after technology shares led gains in the U.S., with the Nasdaq 100 outperforming the S&P 500.

Elsewhere, oil held losses as the stronger dollar and rising refined products supply offset shrinking U.S. crude inventories. Bitcoin gained.

© Bloomberg Treasury yields retreating after a significant advance

“This will be a great year for the economy and earnings, but just a good year for the stock market,” Bob Doll, chief equity strategist at Nuveen, said on Bloomberg TV. “In other words, I think multiples are held back a bit because of modestly rising interest rates and inflation.”

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In Washington, the House of Representatives voted to impeach President Donald Trump for a second time. A Senate trial for Trump won’t likely get underway before his term ends on Jan. 20.

In Europe, European Central Bank council member Francois Villeroy de Galhau said the ECB will keep an easy stance for as long as needed.

On the coronavirus front, the U.K. reported the most deaths in one day since the pandemic began. Johnson & Johnson’s single-dose Covid-19 vaccine may not be authorized for use until March, weeks later than U.S. officials have suggested.

Here are some key events coming up:

JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. are among firms due to report earnings.U.S. President-elect Joe Biden plans to lay out proposals for fiscal support on Thursday.Federal Reserve Chairman Jerome Powell takes part in a webinar on Thursday.U.S. initial jobless claims data are due Thursday.U.S. retail sales, industrial production, business inventories and consumer sentiment figures are due Friday.

These are some of the main moves in markets:

Stocks

S&P 500 futures gained 0.1% as of 9:05 a.m. in Tokyo. The gauge rose 0.2% on Wednesday.Japan’s Topix index was little changed.Australia’s S&P/ASX 200 Index fell 0.2%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro bought $1.2161.The yen was at 103.80 per dollar.The offshore yuan traded at 6.4636 per dollar.

Bonds

The yield on 10-year Treasuries declined one basis point to 1.08%.Australia’s 10-year yield fell about three basis points to 1.07%.

Commodities

West Texas Intermediate crude retreated 0.3% to $52.77 a barrel.Gold was at $1,848.04 an ounce.

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