BUY BANK NIFTY 34600 CE ABOVE 320 TRG 550-850 SL PAID. Most Asian stocks rose Wednesday, extending a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fueled swings in heavily shorted shares. The dollar retreated.
Shares outperformed in Australia and Japan, though dipped in Hong Kong. S&P 500 and Nasdaq 100 futures climbed after Alphabet Inc. and Amazon.com Inc. reported better-than-estimated revenue, with the online-retail giant saying Chief Executive Officer Jeff Bezos will step down from his post. U.S. stocks earlier closed higher for a second session. Treasury yields edged up amid a move to fast track a U.S. stimulus plan.
Elsewhere, oil traded at its highest in over a year on tightening global supplies and signs of strength in physical markets. The People’s Bank of China earlier drained some funds from the financial system.
Stocks are seeing renewed buying as earnings roll in and the speculative trades popular with Reddit crowds crumble. GameStop Corp. and AMC Entertainment Holdings Inc. tumbled Tuesday, while silver steadied after a 10% slide from an eight-year high. Treasury Secretary Janet Yellen has summoned U.S. financial regulators to discuss the recent market volatility.
The Senate on Tuesday opened a debate on a budget resolution for the 2021 fiscal year, a maneuver that would clear the way for the president’s $1.9 trillion stimulus relief plan to pass with a simple majority rather than the 60-vote threshold for most legislation.
“The fact that markets have cooled down a bit with the retail-trading frenzy, that’s giving a little bit of optimism,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “Anytime there’s more stability to markets, there’s a breath of relief of all investors.”
Still, some urged caution. Bank of America Corp. strategists came out with a warning about rising bullishness, saying that a sentiment indicator is close to hitting a “sell” signal. Citigroup Inc. is growing concerned with elevated earnings expectations, with strategists noting that share prices may be ahead of themselves by about 10%.
Commodities
- West Texas Intermediate crude climbed 0.4% to $54.99 a barrel.
- Gold was at $1,841.32 an ounce, up 0.2%.
- Silver futures added 2.9% to $27.17 after slumping 10% on Tuesday.
Stocks
- S&P 500 futures rose 0.4% as of 1:20 p.m. in Tokyo. The gauge increased 1.4% on Tuesday.
- Topix index rose 1.1%.
- Hang Seng Index was down 0.5%.
- Shanghai Composite Index added 0.2%.
- Australia’s S&P/ASX 200 Index rose 1.2%
- Euro Stoxx 50 futures gained 0.5%.
