Dollar Declines; China Tech Leads Stocks Rebound: Markets Wrap
Chinese stocks roared back from a rout on unconfirmed social media posts speculating that a committee was being formed to assess scenarios on how to exit Covid Zero. A gauge of Hong Kong-listed technology companies surged more than 9%. European and US equity futures advanced after the S&P 500 declined, weighed down by big tech. US energy shares had whipsawed on news that President Joe Biden would call on Congress to consider tax penalties for producers accruing record profits. Looking ahead, Bespoke Investment Group said November has historically been one of the strongest months of the year for US stocks.
The S&P 500 has experienced an average gain of 0.82% with positive returns 69% of the time, according to data going back to 1983. Over the last 10 years, the gauge saw a median advance of 1.26% and gains nine out of 10 times.
The Bloomberg Dollar Index snapped a three-day rising streak and the offshore yuan extended a gain.
The yen strengthened while remaining within reach of the 150 level versus the dollar. Japan spent a record 6.3 trillion yen ($42 billion) in October to counter the yen’s sharp slide against the dollar, as it tried to limit speculative moves adding to pressure on the currency.