Bill Gross warns on gold momentum as regional bank stocks tumble
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei up 1%, Nomura flags possible loss at U.S. unit
* Markets optimistic ahead of Biden infrastructure plan
* U.S. dollar holds recent gains on euro and yen
* Oil supported by Suez blockage, OPEC meeting ahead
By Wayne Cole
SYDNEY, March 29 (Reuters) - Asian shares inched higher and
the U.S. held near multi-month peaks on Monday as the chance of
yet more trillions in U.S. fiscal spending underpinned the
outlook for global growth.
Optimism about the U.S. economy helped Wall Street rally
late Friday, while by Sunday some 143 million vaccinations had
been given to almost 94 million people. President Joe Biden is expected to put some detail on his
infrastructure spending plans on Wednesday, while payrolls on
Friday are forecast to rise 630,000 amid chatter it could be a
million or more.
"We expect the global economy to expand robustly at 6.4%
this year, fuelled by a large U.S. fiscal stimulus, with
positive spillovers for the rest of the world," said Barclays
economist Christian Keller.
"Rising inflation over the coming months should be
transitory, and core central banks seem committed to looking
through it."
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS nudged up 0.1%, with activity restrained by the
approach of quarter end.
Japan's Nikkei .N225 added 1%, though there was some
nervousness when Nomura reported it had discovered a loss at its
U.S. unit that could amount to $2 billion. There was also some caution after a $20 billion wave of
block trades hit markets on Friday, reportedly linked to
investment fund Archegos Capital. For now, Nasdaq futures NQc1 were off 0.4%, and S&P 500
futures ESc1 0.3%.
The prospect of faster U.S. economic growth has spurred
speculation of rising inflation and weighed on Treasury prices.
Yields on U.S. 10-year notes US10YT=TWEB were up at 1.67%, and
nearing the recent 13-month top of 1.754%.
European yields have been restrained by active buying from
the European Central Bank, widening the dollar's yield advantage
over the euro. The single currency was last at $1.1786 EUR= ,
having hit a five-month low of $1.1760 last week.
Analysts at TD Securities noted the euro had failed to find
any benefit from a very strong German IfO survey on Friday that
showed business morale at a near two-year high and signs of
recovery in the service sector. "This suggests that market positioning still remains
significantly skewed toward the long side in EURUSD — even
though spot has seen a meaningful decline through the 200-day
moving average," they wrote in a note. "We continue to focus on
downside risks from here."
The dollar was also firm at 109.70 yen JPY= , having
reached its highest since early June on Friday at 109.84. The
dollar index stood at 92.776 =USD , after reaching its highest
since mid-November.
The lift in yields has weighed on gold, which offers no
fixed return, and left it at $1,730 an ounce XAU= .
Oil prices, and commodities in general, have been supported
by speculation a blockage in the Suez canal could take weeks to
clear, delaying oil shipments of a million barrels a day. There
are now over 300 vessels waiting to pass through the shipping
route which accounts for 12% of global trade. The market will be cautious ahead of an OPEC meeting this
week which will have to decide whether to extend supply limits,
or loosen the spigots. O/R
Brent LCOc1 was off 7 cents at $64.50 in early trade,
while U.S. crude CLc1 dipped 24 cents to $60.73 per barrel.
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(Editing by Richard Pullin)