World Market Indices

 U.S. stock futures mostly flat as stimulus negotiations continue

U.S. stock futures were little changed on Sunday evening as investors prepared for a busy week of corporate earnings and monitored stimulus negotiations in Washington.

Futures for the Dow Jones Industrial Average and the S&P 500 hovered near the flat line, while those for the Nasdaq 100 ticked up 0.1%.

The move in futures follows a strong week for the stock market. The Dow jumped 3.3% to post its biggest one-week gain since August, while the S&P 500 and Nasdaq Composite gained 3.8% and 4.6%, respectively, for their best weeks since July.

Asian stock futures pointed to a mixed start for equities, and S&P 500 futures slipped at the open. The yuan was about 0.6% lower against the dollar and the Australian and New Zealand dollars also slipped as foreign exchange markets opened. Last week, the S&P 500 ended higher as some traders bet U.S. lawmakers are moving closer to reaching an agreement to provide more fiscal stimulus. The daily currency fixing in China will be closely watched on Monday after the central bank’s step to restrain the rally. Focus will soon turn to earnings season on Wall Street, with big banks due to report results.

Japan stocks set to trade lower; investors watch Chinese yuan following central bank moves

SINGAPORE — Stocks in Asia-Pacific were mixed in Monday morning trade, as investors watch movements in the Chinese yuan.

In Japan, the Nikkei 225 slipped 0.28% in early trade while the Topix index shed 0.17%. South Korea’s Kospi, on the other hand, rose 0.41% as shares returned to trade following a Friday holiday.

Meanwhile, shares in Australia were little changed, with the S&P/ASX 200 above the flatline.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded about 0.1% higher.

Chinese yuan watch

Movements in the Chinese yuan are set to be watched by investors on Monday, after the People’s Bank of China announced a rule change that made it cheaper to short the yuan.

The central bank announced Saturday that financial institutions now no longer need to set aside cash when conducting some foreign exchange forwards trading, with effect from Monday. Previously, financial institutions had to set aside 20% of the previous month’s yuan forwards settlement amount as foreign exchange risk reserves, according to Reuters.

The offshore yuan last traded more than 0.6% weaker against the greenback, at 6.7332 per dollar, after strengthening for the last few months.

National Australia Bank’s Tapas Strickland said the moves in the yuan were likely driven by the rule change “which makes it less expensive to short the (Chinese yuan) and signals less (concern) about currency weakness.”

Oil prices slip

Oil prices were lower in the morning of Asian trading hours, with international benchmark Brent crude futures down 1.42% to $42.24 per barrel. U.S. crude futures also shed 1.5% to $39.99 per barrel.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.125 following a recent slide from levels above 93.3.

The Japanese yen traded at 105.60 per dollar after strengthening from levels above 105.9 against the greenback last week. The Australian dollar changed hands at $0.722 after rising from about $0.71 last week.