Asian stocks rose after a record session of Wall Street. The yen fell against the backdrop of the optimism of American traders, caused by the US mood for a peaceful resolution of the nuclear threat from North Korea. The relaxation of tension came on Monday, as new provocative statements were not received from Pyongyang over the weekend. Nevertheless, the North Korean issue will become central to Donald Trump’s address to world leaders at the UN Congress on Tuesday. The MSCI index rose by 0.9%, reaching a maximum level since the end of 2007. The main index of Australia rose by 0.6%, while the Nikkei in Japan did not trade in connection with the holiday weekend in the markets. The S & P 500 rose above 2,500 for the first time on Friday, and the yield on 10-year US Treasuries rose 14 basis points last week.
The dollar traded steadily against the Japanese yen, as it is expected that the Bank of Japan will maintain its large-scale bond purchase campaign at a meeting on Thursday. Meanwhile, Japanese Prime Minister Shinzo Abe is weighing the possibility of holding general elections next month in view of the growing support of his party against the backdrop of the North Korean crisis, as well as unrest in the main opposition party. The outlook for the US economy is overshadowed by Hurricane Harvey, and investors will closely follow the speeches of Fed Chairman Janet Jellen and the Fed’s regional leaders, hoping to get clues about the next steps of the central bank. A modest rebound in the dollar, coupled with all the talk about tightening monetary policy, led to the fact that gold took a defensive position.
Oil markets traded steadily on Monday, remaining at the multi-month highs at the end of last week, as part of the drilling rig in the US is still in the recovery and launch phase after hurricane Harvey, resulting in production declining. Brent crude rose in price by 2 cents during the Asian session, in addition to an increase of 3.3 cents last week. US oil fell in price by 1 cent and traded at $ 49.88 per barrel at the beginning of trading. Today, the final consumer price index in the euro area is expected at 09:00 GMT, and at 15:00 GMT the speech of the head of the Bank of England Karni will take place.