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Asian stock markets:
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European stocks, S&P futures dip
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Bond yields drop
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Beijing sets lower-than-expected 5% growth target
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Markets brace for Powell, meetings of BOJ, BOC and RBA
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Feb payrolls a major test for U.S. rate expectations
(Updates to U.S. markets open, adds NEW YORK dateline, changes
byline)
By Stephen Culp
NEW YORK, March 6 (Reuters) - Wall Street stocks moved
higher and Treasury yields eased as investors weighed China
growth expectations and looked ahead to U.S. Federal Reserve
Chairman Jerome Powell's congressional testimony and crucial
jobs data expected later in the week.
All three major U.S. stock indexes gained ground on Monday,
appearing to extend last week's rally, with lower Treasury
yields boosting interest rate-sensitive megacap stocks.
A drop in U.S. factory orders followed modest growth
estimates from China, boosting hopes that economic softening
could translate to cooling inflation.
"The guidelines regarding economic growth out of China is
being viewed as anti-inflationary," said Peter Tuz, president of
Chase Investment Counsel in Charlottesville, Virginia.
"The slow-ish growth number, has resulted in the belief that
if the economy is slowing that's good for the belief that
inflation is going down, which supports the belief we could be
getting close to the end of the (Fed's) interest rate hike
cycle."
On Tuesday and Wednesday, Fed Chairman Jerome Powell is due
to deliver his semi-annual testimony before Congress, which will
be closely parsed for any clues regarding the extent and
duration of the central bank's restrictive monetary policy aimed
at curbing inflation.
Further down the road, the Labor Department's
much-anticipated February employment report is expected on
Friday. Any signs of softening in the robust jobs market will be
seen as a sign that the Fed's hawkish tactics are having their
desired effect.
The Dow Jones Industrial Average rose 122.6 points,
or 0.37%, to 33,513.57, the S&P 500 gained 26.33 points,
or 0.65%, to 4,071.97, and the Nasdaq Composite added
104.07 points, or 0.89%, to 11,793.07.
European shares reversed earlier gains and were last
essentially unchanged after modest China growth estimates
suggested a possible dampening of demand for European goods.
The pan-European STOXX 600 index lost 0.01% and
MSCI's gauge of stocks across the globe gained
0.68%.
Emerging market stocks rose 0.64%. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 0.57%
higher, while Japan's Nikkei rose 1.11%.
Benchmark U.S. Treasury yields continued to ease as
dampening demand supported hopes that the Fed is approaching the
end of its rate-hike phase.
Benchmark 10-year notes last rose 5/32 in price
to yield 3.9459%, from 3.963% late on Friday.
The 30-year bond last rose 14/32 in price to
yield 3.8621%, from 3.887% late on Friday.
The dollar lost ground against a basket of world currencies
ahead of Powell's testimony and the jobs data.
The dollar index fell 0.29%, with the euro up
0.41% to $1.0678.
The Japanese yen strengthened 0.05% versus the greenback at
135.82 per dollar, while sterling was last trading at
$1.2021, down 0.16% on the day.
Crude prices headed lower after China's low-end growth
projections fuelled fears of softening demand.
U.S. crude fell 0.53% to $79.26 per barrel and Brent was last at $85.17, down 0.77% on the day.
Gold consolidated recent gains, with the safe-haven metal
inching lower in advance of Powell's congressional testimony.
Spot gold dropped 0.2% to $1,851.53 an ounce.
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(Reporting by Stephen Culp; Additional reporting by Yoruk
Bahceli and Wayne Cole; Editing by Shounak Dasgupta)
