US equity bullishness spreads to Asia-Pacific markets

Published: September 29 2022, 03:00 GMT+0

US equity bullishness spreads to Asia-Pacific markets

  • Paychex Inc and Cintas Corp are the latest companies to report Q2 earnings while Nike and Micron Technology next
  • Yesterday's star of the day Vanguard Mortgage-Backed Securities ETF appreciates 1.92% while outperforming its peers
  • Asia-Pacific markets are trending positively as ASX 200 added 1.63% to trade at 6,567.

Yesterday's trading session saw to it that leading equity indices in the US rose as Dow Jones gained 1.88% and closed at 29,684. S&P 500 closed the day at 3,719, having gained 1.97%.

US markets are now currently closed and set to reopen today; meanwhile, Asia-Pacific session in progress; markets are rising as ASX 200 leaps up to 6,567 (up 1.63%). European markets closed higher yesterday whilst FTSE is up by 0.3%, hitting 7,005.39.

With bond yields tumbling, investors are turning their attention to stocks. The iShares U.S. Treasury Bond ETF has gone up 1.42% to trade at $22.9.

The earnings season is coming to an end and Paychex Inc and Cintas Corp have release their reports.

On a negative note, the market received some disappointing news as United States Crude Oil Inventories published yesterday at 14:30 UTC came out at -215,000, falling short of the 443,000 projections and continuing its decline from the previous 1.14 million figure. Data from United States concerning Pending Home Sales was released yesterday at 14:00 UTC. Newly published figures emphasized continued decline from last month's figure of -0.6% to -2% this month.

Today's rise takes place amid mixed market indicators — United States New Home Sales (Aug) came out at 685,000, while a consensus of analysts was expecting 500,000.

Also worthy of note, as things stand, upcoming United States Initial Jobless Claims data is projected to fall short of market expectations with newly published data of 215,000, following on from the preceding figure of 213,000. New data is set to be published today at 12:30 UTC.

Furthermore, the market is looking at United States Core PCE Price Index (MoM) (Aug) is scheduled for tomorrow at 12:30 UTC. United States GDP is expected today at 12:30 UTC.

While most stocks did well yesterday, some did better than others as Vanguard Mortgage-Backed Securities ETF trades at $45.54 having gained 1.92%. IShares Core Total USD Bond Market ETF (up 1.59%) and Vanguard Short-Term Corporate Bond ETF (up 0.905%) also performed well yesterday.

Risk-on sentiment allowed VMBS to post 1.92% gain yesterday

Vanguard Mortgage-Backed Securities ETF stayed on track yesterday: after finishing Tuesday at $44.68, Vanguard Mortgage-Backed Securities Index Fund ETF Shares went up to $45.65 before paring its losses and closing at $45.54.