Stocks may rise in the Asia Pacific region Monday after the S&P 500 index closed at a record high Friday. The dollar held gains from last week, when it put in its best performance of the year on optimism that the Trump administration is finally moving forward with tax reforms that could boost U.S. growth.
The euro was little changed after a contentious vote in Catalonia on whether to split from Spain, which was marred by violence. The tensions could have a bigger effect in the bond market, with the potential for Spanish bond premiums to rise over German yields.
“Is there not still a compromise to be found? My guess is that there is – and that things will settle down in coming months,” Erik Nielsen, global chief economist at UniCredit SpA. “I understand recent spread-widening for Spain, but my money is on calmer days ahead.”
Also this week comes the U.S. weekly jobs report, though it may have less predictive power than usual on the economic outlook due to distortions likely from hurricanes in August. Investors will be looking for any further clues on whether President Donald Trump will ask Federal Reserve Chair Janet Yellen to stay on after her term is up in February, or pick someone new. Trump said he expected to make a call in the next two or three weeks.
Here are the main moves in markets:
- Futures on the S&P 500 rose 0.2 percent as of 7:33 a.m. in Tokyo. The underlying gauge added 0.4 percent to a record 2,519.36 on Friday.
- Contracts on the Nikkei 225 Stock Average were up 0.3 percent and futures on Australia’s S&P/ASX 200 Index was also up 0.2 percent. Hong Kong’s Hang Seng Index saw futures gain 0.2 percent.
- The MSCI Emerging Markets Index lost 1.9 percent last week.
- The Bloomberg Dollar Spot Index was little changed after having its best week of the year last week.
- The yen was down slightly at 112.67 per dollar.
- The euro was at $1.1808, little changed.
- The yield on 10-year Treasuries ended last week at 2.33 percent, up 8 basis points for the week.
- West Texas Intermediate crude was at $51.64 a barrel. Oil advanced 2 percent last week.
- Gold was 0.2 percent lower at $1,278.35 an ounce.