FX.co ★ US stocks bounce back amid downturn in the crypto market

US stocks showed volatile moves this morning, as opposed to Asian stocks, which moved steadily. Apparently, these are caused by the downturn in the crypto market, as well as on the projections for inflation and China's growing efforts to lower commodity prices.

Japan, China and Australia indices showed stable growth, while Hong Kong indices declined. S&P 500, Nasdaq 100 and Euro stoxx 50, on the other hand, fluctuated after the multidirectional closure last Friday.

The stalled commodity boom remains in the spotlight as China tries to curb speculation. It promised severe penalties for violations ranging from excessive speculation to the spread of false news.

Meanwhile, inflationary expectations have begun to decline recently, but fears persist that the ongoing economic recovery might provoke price pressures, which will trigger an early easing of assistance programs.

Global equities have also lost momentum, but fortunately, progress on the health crisis is providing support to the markets. However, investors fear that policymakers may eventually curtail aid programs, all while COVID-19 cases continue to spike in some countries.

JoAnne Feeney of Advisors Capital Management said: "Markets should fluctuate in the next few months, at least until there is a clearer picture on what will actually happen to inflation, how US incentives will affect spending and how the coronavirus is really progressing."

Traders should pay attention to the following events that will happen this week:

- CoinDesk conference that will bring together well-known professionals across the globe to discuss NFTs, exchanges and the role of central banks;

- policy meeting of the Bank of Indonesia;

- policy meeting of the Reserve Bank of New Zealand;

- meeting of CEOs of major US banks;

- policy meeting of the Bank of Korea;

- report on US jobless claims, GDP, durable goods and pending home sales.

S & P 500 futures increased 0.2% this morning, following the 0.1% drop on Friday.