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U.S. Markets Poised for Gains Amid Global Bond Yield Rise and Currency Movements

4 weeks ago

U.S. markets are set to reopen on Thursday with a positive outlook following a holiday closure, as futures contracts indicate potential gains on Wall Street. The index tracking dollar strength remained largely unchanged, while bond yields in the U.S. and Australia edged higher, mirroring a similar rise in European yields. Treasuries saw no trading on Wednesday due to the U.S. holiday.

In currency markets, the Japanese yen weakened against the dollar for the sixth consecutive session. Meanwhile, the offshore yuan dropped to its lowest level this year, influenced by signs that Chinese policymakers are easing their control over the currency. The People’s Bank of China set the yuan’s daily reference rate at its lowest since November, signaling potential shifts in monetary policy.

Commodity markets experienced mixed movements. Oil prices retreated ahead of the weekly U.S. inventory report, which is expected to show an increase in crude stockpiles. Conversely, gold prices edged higher after remaining relatively stable in the previous session.

As U.S. traders return to the markets, attention will be focused on the interplay of rising bond yields, currency fluctuations, and commodity price movements, all of which are poised to shape the trading landscape in the coming days.

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