Shares in Asia fell after Jerome Powell warned interest rates may have to climb further, stunting a rally in stocks and bonds and sending investors back to the dollar. All major equity gauges in the region were in the red, tracking a drop for the S&P 500 on Thursday. Hong Kong’s stocks were among the biggest losers after weak profit reports from chipmaker SMIC and casino operator Wynn Macau. The US benchmark slid 0.8%, ending eight days of gains — its best run since 2021. European futures pointed to a weak start. Treasuries steadied in Asia after tumbling Thursday to undo part of this week’s sharp rally, with the spike in yields the largest for the longer tenors. The selling was sparked by a weak auction of 30-year notes, which led to a significantly higher-than-expected yield and rekindled concerns that investors will struggle to soak up the swelling supply of new debt. Federal Reserve Chair Powell said officials won’t hesitate to tighten policy further if needed. While that’s essentially what several Fed speakers have been saying, it’s the part that drew investors attention Thursday — especially after a rally in both equities and bonds. Traders priced in slightly higher odds of an additional hike, while pushing back the first anticipated 25-basis point rate cut to July from June. Powell’s comments were “clearly more hawkish than traders were positioned for,” said Matt Simpson, senior market analyst at City Index. “As yields have seen a decent pullback these past couple of weeks, their sharp rise on Thursday suggests a cycle low has been seen and that is weighing on risk today.” the Bloomberg dollar index held gains in Asia after rising by the most since early October on Thursday. The Aussie dollar led declines among Group-of-10 peers. The yen traded above 151 per dollar. In China, onshore banks ramped up their borrowing of short-term funds, a sign that fears of a cash crunch still loom large. The country’s latest lending and money supply data may be released as soon as Friday, while Japan’s money stock data for October came in line with the prior month. SoftBank Group Corp.’s shares tumbled after its flagship Vision Fund reported another loss with the drop in valuations at WeWork Inc. and other portfolio companies on top of foreign exchange losses. Meta Platforms Inc. struck a tentative deal with Tencent Holdings to sell a virtual reality headset in China, The Wall Street Journal reported. Bitcoin edged closer to $37,000, climbing past Terra crash level, in a win for bruised bulls. West Texas Intermediate edged rose to trade at around $76 per barrel. Gold was little changed. US after Hours Busy earnings session headlined by GRPN -30.2%, TTD -29.6%, ILMN -7.6%, WYNN -5.1%; DOCS +20.5%, SYNA +9.6%, BLNK +8.5%, ALRM +7.8% higher on earnings.
Nikkei -0,24%% Hang Seng -1,44% CSI -0,57% Shanghai -0,37% Shenzen -0.28%
Eur$ 1.0668 CNH 7.3005 CNY 7.2926 JPY 151,38 GBP 1.2229 CHF 0.9035 RUB 92,0580 TRY 28.5519 WTI$ 76,04 Gold 1,957 BTC 36,654 ETH 2,113
S&P +0.10% Nasdaq -0.06% EuroStoxx -0,69% FTSE -0.60% Dax -0.59% SMI +0.8%
Macro :
- Bernstein Strategists See Sluggish Europe Profit Growth in 2024
- Europe Must Create Giants in Space Defense, Leonardo’s CEO Says
- Free-Cash-Flow Sustainability Key for EU Energy-Sector Valuation
- Everstone Plans to Raise $1 Billion for Its Largest Asia PE Fund
- Germany on Cusp of €22 Billion Deal for Dutch-Owned Tennet Grid
Keep an eye on :
- 1U1 GY : 1&1 Maintains FY Service Revenue Forecast
- ADE NO : Adevinta Deal Could Come at Low End of 115-125 Kroner: React
- ADYEN NA : Adyen Is Satisfying Investor Demands for Transparency, CFO Says
- ALV GY : Allianz Beat Estimates as Pimco Sees Third Quarter of Inflows
- APAM NA : Aperam 3Q Adjusted Ebitda Misses Estimates
- ALV US : Autoliv Raises Quarterly Dividend 3% to 68 cents/Shr
- BC8 GY : Bechtle 3Q Pretax Profit Margin Beats Estimates
- BPOST BB : Bpost 3Q Adjusted Ebit Beats Estimates
- BWIDL NO : BW Sirocco Launches Voluntary Offer for BW Ideol Shares
- CPRI US : Capri Holdings 2Q Adjusted EPS Misses Estimates
- CPRI US : Capri's Three Brands Lose Share, Cash Flow Target Robust: React
- CWC GY : Cewe Stiftung Sees FY Ebit EU70M to EU82M, Saw up to EU82M
- DAE SW : Daetwyler Maintains FY Ebit Margin Forecast
- GN DC : GN Store Nord Narrows FY Organic Revenue Growth Forecast
- ILTY IM : Illimity Bank 3Q Operating Income Misses Estimates
- IMCD NA : IMCD 9M Revenue EU3.38B Vs. EU3.51B Y/y
- INW IM : INWIT 3Q Ebitda Meets Estimates
- IOS GY : Ionos Sees FY Adjusted Ebitda Margin 27.5%, Saw at Least 27%
- DEC FP : JCDecaux 3Q Adjusted Revenue Misses Estimates
- JUN3 GY : Jungheinrich 3Q Ebit Meets Estimates
- LEHN SW : Lem Sees FY Ebit Margin Above 20%
- LDO IM : Leonardo 3Q Ebita Misses Estimates
- LDO IM : Leonardo Plan to Renegotiate 787 Pricing Could Spark More: React
- META US : Meta in Pact With Tencent to Sell VR Headsets in China: WSJ
- NWG LN : Natwest Set to Cancel Bulk of Ex-CEO’s Possible £10m Payoff: Sky
- NOVN SW : Novartis Reports Positive Data From Phase 3 of Remibrutinib Drug
- PIRC IM : Pirelli Sees FY Revenue About EU6.6B, Est. EU6.62B
- CFR SW : Richemont 1H Operating Profit Misses Estimates
- SBBB SS : SBB Given Acceleration Notice From Bondholder on Eurobonds
- SOP FP : Sopra Steria, Idemia to Install Fingerprint System for France
- SCR FP : Scor 3Q Net Income Misses Estimates
- SSE LN : SSE, Orsted Prospects Buoyed by Potential UK Price Uplift: React
- STM GY : Stabilus Sees 2024 Adjusted Ebit Margin 13% to 14%, Est. 13.6%
- UCB BB : UCB: New Ankylosing Spondylitis Bimzelx Data Shows Improvement
- US IM : UnipolSai 9M Consolidated Net EU586M Vs. EU616M Y/y
- UNI IM : Unipol 9M Direct Insurance Income EU10.57B Vs. EU9.83B Y/y
- UTDI GY : United Internet 9M Sales EU4.59B Vs. EU4.38B Y/y
- U US : Unity Slumps as Lack of Outlook Adds to Uncertainty
- VLN FP : Valneva Announces U.S. FDA Approval of World’s First Chikungunya Vaccine, IXCHIQ®
- VWS DC : Vestas, Peers Face Wind Dilemma as Offshore Costs Risk Margin
- WBD IM : Webuild 9M Orders EU22B