Global equities moved higher on Wednesday, as optimism returned the day after selling across Wall Street and elsewhere amid concerns over overpriced equities.
Leading wins in Asia, Hong Kong
Hang Seng Index
climbed 2.6%, while China
CSI 300 index
added almost 2%. These markets recovered from Tuesday’s losses, following a top Chinese bank regulator warned of risks from the country’s real estate market and bubbles in developed stocks.
Stoxx Europe 600
rose 0.5, with
FTSE 100 Index
sprinted forward with a gain of 1%, as investors waited for Finance Minister Rishi Sunak’s budget address expected around dinner in London. The British shares rose with hopes of possible tax increases and spending cuts and help for the housing and hotel industry. Leaked media reports say he will expand the country’s workers’ plan.
Wall Street looked at potentially a stronger open lead of Nasdaq-100 futures, an increase of about 0.6%.
Dow Jones Industrial Average
futures climbed over 200 points, and
Futures gains even came when the return on the 10-year government bond climbed higher to 1.44% on Wednesday. Rising bond yields are still a major concern for investors, as returns were below 1% at the beginning of the year.
Economic data will swing into focus on Wednesday, and the ADP employment report is expected to show a gain of 225,000 new private wage jobs created in February, according to economists polled by The Wall Street Journal and Dow Jones. It comes before Friday’s closely monitored government job report.
“A soft figure should reassure investors that the Fed will need to be supportive for as long as needed to improve the US labor market. But a strong figure should revive the idea that the Fed will consider tightening its policy sooner rather than later, stimulating hawkish expectations and weighing the risk mood, Ipek Ozkardeskaya, senior analyst at Swissquote, told customers in a note.
Wednesday’s data also includes the final index for Purchasing Managers for Markit services and the Institute of Supply Manager’s services index, both for February, followed by the Federal Reserve’s Beige Book. Speeches by a handful of Fed officials, including Chicago Fed President Charles Evans, are also ahead.
Among shares in focus, shares of
Hewlett Packard Enterprise
increased in the pre-market, after the enterprise computer hardware company reported better profits than expected and raised the outlook.
the shares were also higher, after the ride-sharing group gave an optimistic business forecast for one year filing with the Securities and Exchange Commission.