Stocks resumed their slide as technology shares remained under pressure and investors trimmed positions ahead of a key inflation reading in the US. Gold dropped. MSCI’s gauge of Asia Pacific equities fell 1.8%, heading for its fourth loss in five days, as investors rotated out of tech stocks. South Korea’s Kospi, a barometer of artificial intelligence investment, led regional losses, tumbling 4.4% as chipmakers retreated following a scorching advance that had propelled the benchmark to the top of global rankings this year. Equity-index futures for the tech-heavy Nasdaq 100 dropped 0.5% after a volatile session on Wall Street Tuesday. European shares were set for a tepid start. Gold dropped 1.8% to trade below $4,200 an ounce on expectations that faster inflation will prompt the Federal Reserve to raise interest rates and weigh on non-interest-bearing assets. Bonds fell, with the Treasury 10-year yield rising two basis points to 4.54%. Oil pared Tuesday’s losses with Brent crude trading around $92 a barrel as tensions flared following US attacks on Iran. Volatility is rising across markets as traders grapple with a growing list of risks: stretched tech stock valuations, escalating Middle East tensions and mounting expectations that the Fed will need to raise rates to combat faster inflation. Eyes now turn to Wednesday’s US inflation report, which may provide the clearest signal yet on whether new Fed Chair Kevin Warsh will keep rates higher for longer. A series of monetary policy meetings are due over the next week, with the European Central Bank announcing its decision Thursday, the Bank of Japan on June 16 and the Fed on the following day. Bond traders are piling into positions targeting multiple Fed rate hikes in coming months, with some looking for a move as early as the September policy meeting. That’s the theme in the options market linked to the Fed-sensitive Secured Overnight Financing Rate, where traders have been increasing wagers on rate increases ever since Friday’s surprisingly strong US employment report, which sent the bond market tumbling. Higher US interest rates tend to drain capital from emerging markets, strengthen the dollar and raise borrowing costs, creating a tougher backdrop for equities. Economists surveyed by Bloomberg expect annual CPI to accelerate to 4.2% in May from 3.8% a month earlier. Core inflation, which excludes food and energy, is projected to edge up to 2.9% from 2.8%. The commodity is about a fifth below where it was trading before the Iran war broke out at the end of February. The metal’s recent decline through its 200-day moving average — a widely watched measure of long-term momentum — has triggered additional selling as it’s seen as an important level watched by institutional investors. In other corners of the market, Bitcoin dropped over 1% to around $61,500. Japanese bond futures extended losses after a 30-year debt auction. Indonesian assets staged a rebound as officials stepped up efforts to assure foreign investors, with the rupiah rising the most in more than a year, while a selloff in the bond market eased. Stocks extended a rally into a second day. Higher interest rates and rich valuations have prompted investors to unwind some of their bets on tech stocks after a blistering rally that has taken equities to repeated records. US After Hours CBRL +10.3%, HNGE +3.2%, CASY +3% higher on earnings/guidance; SMCI -8.2% on $7 bln financing transactions; CLLS +19.1% receives FDA RMAT designation.
Nikkei -1.89% Hang Seng -0.95% CSI -1.33% Kospi -6.08% Shanghai -0.80% Shenzen -2.45%
Eur$ 1.1540 CNH 6.7776 CNY 6.7754 JPY 160.36 GBP 1.3381 CHF 0.7992 RUB 71.8629 TRY 46.1346 WTI$ 88.58 Gold 4,176 -1.79% BTC 61,046 -1.73% ETH 1,615 -2.61%
S&P -0.37% Nasdaq -0.63% EuroStoxx +0.21% FTSE -0.17% Dax +0.20% SMI -0.11%
Macro :
- US Strikes Iran After Helicopter Downed, Testing Peace Talks
- Oil Climbs After Fresh US Strikes on Iran Over Helicopter Attack
- Bitcoin and gold fall together as a rate-hike bet hits every hedge
Keep an eye on :
Keep an eye on :
- AALB NA : Aalberts to Join AEX Index
- AL2SI FP : 2CRSi Sells AI Servers Worth €110M
- AL2SI FP : 2CRSi Sells AI Servers Worth €110M
- ALCLS FP : Cellectis Gets FDA RMAT Designation for Lasme-cel Therapy
- CNA LN : Centrica Signs for Additional LNG Supply With Delfin Expansion
- CWR LN : Ceres Power Offers £100m Shares
- CWR LN : Ceres Power Offers £100m Shares
- CBK GY : UniCredit: 10.91% of Commerzbank Shares Tendered as of June 9
- LLY US : Eli Lilly Gets FDA Approval for Eight-Week EBGLYSS Dosing
- EVK GY : RAG-Stiftung Exchangeables Prices at 1.45% Coupon, 27.5% Premium
- INGA NA : ING Introduces Subscription Model in Push to Lift Fee Income
- IIPR US : Innovative Ind. Offers Up to 6% Coupon on Convertible: Terms
- INTRUM SS : Intrum EGM Passes Proposal to Carry Out SEK7.5b Capital Raise
- KOG NO : Kongsberg Targets NOK100b Revenue 2029, NOK150b in 2033
- LR FP : Legrand Buys Girtz Industries in the U.S.
- Open AI IPO : OpenAI in Talks to Lease 10GW Ohio Data Centers: Information - Full Article
- SAN FP : Sanofi Ends Riliprubart Phase 3 Study After Efficacy Concerns
- SMCI US : Super Micro Offers Up to 7% Coupon on Mandatory Convert: Terms
- 9984 JP : SoftBank’s Attempt to Get $6 Billion OpenAI Margin Loan Stalls
- SBUX US : Starbucks Said to Weigh Japan Unit Options Including Stake Sale
- SMMT US : Summit Therapeutics Offers $500 Million Shares
- SYSR SS : Systemair 4Q Sales Beat Estimates
- TSLA US : Denmark Approves Tesla’s Full Self-Driving Software
- UCG IM : UniCredit Says All Commerzbank Disclosures Compliant With Law
- VIV FP : Vivendi to Lodge Appeal on EU Information Demand Court Ruling