A number of Asian stock markets slipped Tuesday as investors await more clues on whether the recovery from the pandemic will stoke price pressures and imperil loose monetary policy. The dollar climbed.
Shares from Japan to Hong Kong pared or reversed gains. U.S. futures gave back earlier advances, leaving S&P 500 contracts flat and those on the Nasdaq 100 slightly higher. The S&P 500 was steady near a record overnight, while a rally in Biogen Inc. on approval of its Alzheimer’s drug lifted the Nasdaq 100.
Ten-year U.S. Treasury yields dipped. Traders are awaiting the U.S. inflation report to assess price pressures and expectations that the Federal Reserve is getting closer to starting discussions about tapering asset purchases.
Oil extended a decline, losing some momentum after hitting $70 a barrel in New York for the first time in over two years. Digital tokens including Bitcoin retreated, with the Bloomberg Galaxy Crypto Index shedding as much as 10%.
Global equities continue to hover around all-time highs and cross-asset volatility has ebbed, underpinned by the economic reopening from the health crisis and central bank support. But there are concerns about how long the calm can last given that policy makers will eventually pare back stimulus as the recovery builds. Thursday’s U.S. CPI report will be one of the last major economic indicators before the Fed’s rate decision later this month.