Asian markets appear poised to trade cautiously as they open Monday as investors assess the pace of the economic recovery.
Futures were little changed in Australia, Japan and Hong Kong.
Australian actions will be closely watched after Sydney enters a two-week lockdown to stem a Covid-19 resurgence.
US futures have not changed much. The S&P 500 had its best week since February, with financial and retail stocks beating tech giants that outperformed during the height of the pandemic. The treasures have receded.
Bitcoin has traded for less than US $ 33,000 as cryptocurrencies will be closely watched after the UK cryptocurrency exchange Binance restricted its activities in the country.
Global stocks ended last week at an all time high as concern over the Federal Reserve’s hawkish trend eased as investors quelled fears that U.S. policymakers would rush to raise interest rates despite increasing inflationary pressures.
Volatility has receded, with the Cboe Volatility Index, or VIX, falling to pre-pandemic levels.
The Fed “is far from lowering, it is far from raising rates, but at some point, if the markets see the Fed too far behind the curve, you will start to see an adjustment on the long end of the curve”, Charles-Henry Monchau, chief investment officer at FlowBank SA, said on Bloomberg TV.
“We may not have seen the peak in bond yields. I wouldn’t be surprised to see some tweaks in the coming months. This could be an excuse for the market to take a little profit. “
Data on Friday showed personal spending stagnated in May, while a closely watched measure of inflation continued to climb. Meanwhile, US consumer confidence rose less than expected in June and long-term inflation expectations have moderated from the previous month.