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    Bonds Stop Falling, while Commodities Cease Rising – April 28

    US Futures Stable, Asian Markets Mixed

    US futures moved slightly higher on Wednesday, helped by US Treasuries that steadied after plunging overnight ahead of the Federal Reserve’s policy decision. Asian markets were mixed. 

    Shares were slightly higher in Japan but fluctuated in China. They dropped in South Korea. The Nikkei 225 rose 0.2%. The Topix advanced 0.29%. The Hang Seng 0.45%. The ASX 200 gained 0.44%. European and US equity futures edged up, while investors contemplated the earning reports. Declines of such stocks as Tesla pressured US gauges. 

    Commodities, including copper and wheat, stopped climbing. But analysts predict that commodities will continue rallying for at least half a year, while the global economy stabilizes after the pandemic. 

    The US dollar carried on rallying. The Australian dollar sank, pushed lower by disappointing inflation data, bringing the thought that monetary policy normalization would lag behind the Fed.  

    Investors did not react enthusiastically to strong earning reports, setting a high bar for incentives to bring stocks prices higher. Meanwhile, four out of five S&P companies that have published results either met or beaten expectations.   

    These are the major moves that traders should watch on Wednesday:

    Stocks

    S&P 500 futures advanced 0.1% during the Asian session. The S&P 500 remained unchanged. Nasdaq 100 futures advanced 0.2%, after the index fell 0.5%. Japan’s Topix Index climbed 0.4%. South Korea’s Kospi Index slid 0.8%. Australia’s S&P/ASX 200 Index edged 0.5% higher. China’s Shanghai Composite Index was steady. Hong Kong’s Hang Seng Index inched 0.1% up. Euro Stoxx 50 contracts jumped 0.2%.

    Currencies

    The yen sank 0.1% at 108.85 per dollar. The offshore yuan was at 6.4815 per dollar. The euro retreated 0.1% to trade at $1.2075. The GBP shed 0.2% to 1.3885 per dollar. The UAD/UAS pair drifted 0.2% lower to 0.7747. USD/CAD changed hands at 1.2407, remaining almost unchanged from the previous session. 

    Commodities

    West Texas Intermediate crude stabilized at around $63 a barrel. Brent Crude was little changed, trading at $66.45 a barrel. Gold dipped 0.3% at $1,771.64 an ounce. Silver gave up 1.57% to $26.04 an ounce. Platinum lost 0.8% to $1,220.44 an ounce. Copper put an end to its winning streak and sank 0.6% to $445.75.

    Bonds

    The yield on 10-year Treasuries was a basis point higher at 1.63%. Australia’s 10-year bond yield was down one basis point at 1.72%.

    Looking Forward

    These are the events that traders should follow on Wednesday, Thursday, and Friday:

    • Fed Chair Jerome Powell holds a press conference on Wednesday following the Fed meeting.
    • Joe Biden makes his first address as president to a joint session of Congress on Wednesday.
    • U.S. GDP published on Thursday is forecast to show growth strengthened in the first quarter.

    Have a profitable trading day!

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