US and European stock futures point to a session with no definite direction in equity markets as investors weigh the possibility of a reduction in monetary stimulus in the world’s largest economy against a backdrop where recovery still remains threatened by a number of factors, including the rising number of covid-19 cases in several regions of the world.
There was no definite trend in the Asian session either, with stocks falling in China and Hong Kong and rising in Japan. Hong Kong’s Hang Seng was down 0.2%, China’s Shanghai Composite depreciated 0.5%, South Korea’s Kospi lost 0.3% and Japan’s Topix rose 0.4%.
The recovery of the global economy, the risk of a significant rise in inflation and the outbreaks of covid-19 in some parts of the world continue to shape market movements. For now, optimism around growth is something of a stronghold for investors, even though the Fed’s latest minutes have signaled the possibility of an upcoming debate on reducing the exceptional stimulus that has bolstered a number of assets.
“Overall, we’re still risk-on,” Adrian Zuercher, head of global asset allocation at UBS, said on Bloomberg Television, adding that the vaccine rollout and the reopening of the economy “should lead to upside in equity markets.”
