The dollar advanced and stocks extended declines in Asia at the start of a pivotal week for markets, with interest rate decisions due from the Federal Reserve, the European Central Bank and a host of their peers. The greenback rose versus all of its Group-of-10 counterparts while and index of Asian equities fell, ending a two-day winning streak. The rapid spread of Covid cases in China added to concern, with Hong Kong’s the Hang Seng Index down about 2%. US stock futures fell in Asia following a late-day slide on Wall Street on Friday, with the S&P 500 closing near the day’s lows. The Dow Jones Industrial Average notched its worst weekly drop since September. The Treasury 10-year yield eased slightly after a jump on Friday that took it to just below 3.6%. Yields for government bonds in Australia and New Zealand rose. Recession fears have resurfaced ahead of the Fed decision Wednesday, when policymakers are expected to downshift to a 50 basis points hike. Yet officials including Chair Jerome Powell have also stressed that borrowing costs will need to remain restrictive for some time, putting them at odds with some investors looking for rate cuts later in 2023. The ECB follows on Thursday, with consensus estimates for it to also deliver a 50 basis points hike. Markets also have to contend with decisions this week from the Bank of England and monetary authorities in Mexico, Norway, the Philippines, Switzerland and Taiwan. While the tumult of this year has a gauge of global stocks headed for its biggest annual loss since 2008, the world’s biggest investors predict that stocks will see low double-digit gains in 2023. Seventy one percent of respondents in a Bloomberg News survey expect equities to rise, versus 19% forecasting declines. For those seeing gains, the average response was a 10% return. The world’s top fund managers are also mostly bullish on Chinese stocks for 2023. About 60% of respondents in a Bloomberg News survey recommended buying the country’s stocks, while 31% said they are a sell. US natural gas futures extended an advance into a fourth session on an expected surge in heating demand amid a powerful Pacific storm. Oil climbed, rebounding after the biggest weekly loss since April, and gold fell.
Nikkei -0.22% Hang Seng -1.88% CSI -0.83% Shanghai -0.63% Shenzen -0.48%
Eur$ 1.0517 CNH 6.9806 CNY 6.9792 JPY 136.91 GBP 1.2235 CHF 0.9360 RUB 62.5753 TRY 18.6429 WTI$ 71.64 +0.87% Gold 1,787.80 -0.53% BTC 16,931 -1.08% ETH 1,245 -1.55%
S&P -0.04% Nasdaq -0.09% EuroStoxx -0.51% FTSE -0.31% Dax -0.46% SMI
Macro :
- Morgan Stanley’s Wilson Says Stocks Don’t Reflect Earnings Risk
- Bank of America expects a recession next year, Moynihan says
- Goldman’s Waldron Sees ‘Bumpy’ China Reopening Curbing Growth
- Nasdaq to Add 6 Companies to Nasdaq-100 in Annual Reconstitution
- Czech Minister Criticizes Germany for EU Gas-Price Cap Impasse
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- TSCO LN : Tesco to Begin Search for New Chair in 2023, Sky News Reports
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