Stocks and currencies in Asia slipped, with risk appetite dented by deflation risks in China. An Asia equity benchmark fell, headed for the lowest close in more than a month. Shares in Hong and mainland China pared gains after Chinese data showed further declines in factory-gate prices while core inflation slowed. The dollar gained against most Asian currencies, with the offshore yuan swinging to a loss after the report.
Traders had initially focused on signs that a Beijing crackdown on Chinese tech companies was nearing an end, sending the Hang Seng Tech Index up as much as 3.2%, before getting weighed down by the outlook for the world’s second-largest economy. US stock futures slipped further after most American equities dropped Friday when wage data showed inflation remained a threat. The S&P 500 fell 1.2% over the holiday-shortened week, while the Nasdaq 100 dropped 0.9%. Despite the current economic downturn, some investors still see China as a prospective market. Chinese authorities said on Friday they would wrap up a probe into Ant Group Co., with the financial technology company paying a fine of almost $1 billion, to suggest that a broader regulatory crackdown is ending. The dollar edged higher against all of its Group-of-10 currencies. The yen fell fell 0.5%, while Japanese stocks led losses in the region. Treasury yields were little changed, with the two-year remaining below 5% and the 10-year just above 4%. Meanwhile, investors continue to face a host of competing forces, including the risk of higher interest rates and recession. Some jobs reports last week have tamped down speculation the Federal Reserve would leave interest rates unchanged later this month. The outlook beyond that was unclear. Government jobs data fell short of estimates but brought signs that wage inflation remained a threat to the Fed’s fight against price gains. Traders will also be closely watching this week’s US consumer price print. Bloomberg economists are expecting the headline number to fall 3.1%, though they don’t see that stopping the Fed hiking at its meeting later this month. Reports from big banks including Citigroup Inc. and JPMorgan Chase & Co. may also set the tone for second quarter earnings. US Treasury Secretary Janet Yellen said over the weekend she wouldn’t rule out the threat of a US recession, noting that it was “appropriate and normal” for growth to moderate and that inflation remains too high. Oil edged lower Monday after two consecutive weekly increases, and gold steadied.
Nikkei -0,28% Hang Seng +0,48% CSI +0,39% Shanghai +0,07% Shenzen +0,21%
Eur$ 1,0957 CNH 7,2390 CNY 7,2330 JPY 142,93 GBP 1,2814 CHF 0,8906 RUB 91,3727 TRY 26,0656 WTI$ 73,41 -0,55% Gold 1922 -1% BTC 20,136 ETH 1862
S&P -0,42% Nasdaq-0,62% EuroStoxx -0,52% FTSE -0,23% Dax -0,30% SMI -0,49%
Macro :
- US Equities Will ‘Absolutely’ Drop in 2H in CLSA’s Base Case
- UK Chancellor Hunt Set to Outline New Capital Market Rules
- US to Buy 6 Million More Barrels of Oil for Emergency Reserves
- Fed’s QT Ghosts Are Haunting Powell Bid to Shrink Balance Sheet
- Yellen Says US-China Ties on ‘Surer Footing’ After Beijing Visit
Keep an eye on :
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- DIC GY : DIC Asset Cuts FY FFO Forecast
- DIDIY US : Didi Narrows Losses to 1.2 Billion Yuan in First Quarter
- EDP PL : EDP Says Norges Bank Increased Its Stake in Utility to 5.06%
- GM US : GM Cuts Cadillac Lyriq Electric Vehicle Price by $8,300 in China
- HCM LN : Hutchmed Starts Phase I Study of HMPL-415 in China
- ILTY IM : Tycoon Pignataro Wins ECB Approval to Get Stake in Italian Bank
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- META US : Threads Attracts 70 Million Users; Character.AI App: TMT Wrap
- NOVN SW : Novartis Maintains 2023 Group Forecast
- NOVN SW : Samsung Biologics Signs 511.1b Won Deal With Novartis Pharma
- OMV AV : Austria’s OMV CEO Says to Keep Importing Russian Gas, FT Reports
- RIEN SW : Rieter Sells Land in Winterthur to Allreal for CHF96M
- SFL IM : Safilo Names Melotti as Group CFO
- SAN FP : Sanofi CEO Sees Recognition for Drugmaker’s Innovation Focus
- SESL FP : Ses-Imagotag Says Report ‘Contains Several Gross Inaccuracies’
- SHBA SS : Swedish Real Estate Woes Pile Pressure on Handelsbanken’s Rating
- UBSG SW : UBS Introduces Fee for Inactive Clients With $2m Assets: HKEJ
- WIHL SS : Wihlborgs 2Q Income From Property Management Beats Estimates
- UCG IM : UniCredit Pact With UnipolSai Assicurazioni, Allianz on Incontra