Stocks and US equity futures fell Tuesday as the dollar and sovereign bonds rose, a pattern highlighting pervasive unease about the economic outlook amid high inflation and China’s struggles with Covid. An Asian share index was dragged lower by the technology sector as well as weakness in Japan, Hong Kong and China. S&P 500, Nasdaq 100 and European contracts shed over 0.5% after a Wall Street slide Monday. The dollar pushed toward levels last seen at the height of the 2020 market panic over Covid and the yen strengthened, underlining investor caution. The euro-area’s common currency, meanwhile, is in sight of parity with the greenback, sapped by the region’s energy crisis and acute recession fears. Treasuries extended gains, taking the US 10-year yield to 2.96%. Bonds also rallied in Australia. Commodities including oil and iron ore were under pressure. Bitcoin dropped below $20,000. Much is riding on upcoming company profit filings and this week’s US inflation data. A brief equity rebound from this year’s rout is already fizzling ahead of the reports. Risk appetite may struggle to digest a darkening earnings outlook alongside stubborn price pressures that point to more monetary tightening. In China, investors are concerned more Covid lockdowns may lie ahead as Beijing continues with a strategy of mass testing and mobility curbs. A government push for stimulus to shore up growth is starting to have an impact: credit jumped last month to the highest on record for June.
Meanwhile, the latest Fed commentary highlighted both the central bank’s hawkishness and the risks that come with aggressive interest-rate hikes. Fed Bank of Atlanta President Raphael Bostic said the US economy can cope with higher interest rates and repeated his support for another jumbo move this month. Fed Bank of Kansas City President Esther George, who dissented last month against the central bank’s 75 basis-point rate increase, cautioned that rushing to tighten policy could backfire. In company news, Chinese electric-car giant BYD Co. slumpedafter a stake matching the size of Berkshire Hathaway Inc.’s appeared in Hong Kong’s stock-market clearing system, fueling speculation that Warren Buffett’s firm may be adjusting its holdings. US After Hours Summary: GPS -2.1% on CEO stepping down, but reaffirms Q2 revs; PSMT -4.2% lower on earnings; PLAY +3.3% on new execs
Nikkei -1,93% Hang Seng -1,34% CSI -1,04% Shanghai -0,85% Shenzen -1,21%
Eur$ 1,0012 CNH 6,7490 CNY 6,7360 JPY 137,34 GBP 1,1860 CHF 0,9842 RUB 63,7163 TRY 17,3596 WTI$ 101,97 - 0,20% Gold 1,727,45 - 0,40% BTC 20,025 -1,4% ETH 1,090
S&P -0,71% Nasdaq -0,82% EuroStoxx -0,92% FTSE -0,41% Dax -0,87% SMI -0,50%
Macro :
- Worst of World’s Energy Crisis May Be to Come, IEA’s Birol Says
- Bitcoin Bounce From This 70% Crash Faces Fatal Flaw: Macro View
- CEO of Sweden’s $44 Billion AP1 Fund Weighs New Property Deals
- Ackman’s Record SPAC to Return Funds After Deal Hunt Fizzled
- JPMorgan’s Kolanovic Hedges Risk-On Wager, Cuts Corporate Debt
- At 15x, Swiss Haven’s Falling P/E Is Still Extreme vs. Europe
Keep an eye on :
- BAS GY : BASF Prelim 2Q Adjusted Ebit Beats Estimates
- BON FP : Bonduelle Sees Activity, Profitability Below 2021-22 Target
- DBK GY : Deutsche Bank Sees Nordic IPOs Bouncing Back From Lull Next Year
- DB1 GY : SEC Expected to Approve Rollback of Restrictions on Proxy Advice
- DTE GY : AT&T, Verizon, T-Mobile Cleared to Bid in FCC Airwaves Auction
- DNB NO : DNB Bank 2Q Net Income Beats Estimates
- EDF FP : France to Pay More than EU8B for EDF Nationalization: Reuters
- EDF FP : Uniper, EDF's Cases Portend New State Aid as EU Gas Crisis Rages
- FGR FP : Eiffage Acquires Harwig and Eltra for Growth in Netherlands
- ENG SM : Enagas To invest EU4.8b Through 2030, Including Interconnections
- GALE SW : Galenica Buys Aquantic; No Deal Terms
- TKWY NA : Just Eat Takeaway.com Bets on Amazon 5x User-Boost for Grubhub
- MC FP : LVMH’s Sephora Is in Talks to Sell All of Russian Unit
- LHA GY : Italy Finance Ministry Said to Prefer MSC Bid for ITA: Corriere
- B4B GY : Billionaires Said to Vie for Metro’s Indian Wholesale Unit
- NOD NO : Nordic Semiconductor 2Q Ebitda Beats Estimates
- NYF SS : Nyfosa 2Q Total Income Meets Estimates
- PGHN SW : Partners Group Hires ZF’s Scheider as Head of Private Equity
- PPGN SW : PolyPeptide Sees Drop in Profitability in 1H 2022 vs 1H 2021
- RNO FP : Renault Sales Fall 12% in First Half Excluding Russia Pullout
- RNO FP : Renault 1H Worldwide Sales Ex-Russia Fall 12% to 1m Vehicles
- SAS SS : SAS to Resume Talks With Pilots’ Unions, Ready for Concessions
- SPM IM : Saipem Says 70% of New Shares Subscribed for EU1.395B
- SINCH SS : Sinch Sees SEK162M Effect on 2Q Profit Due to Cost Reassessment
- SKAB SS : Skanska Names McCullough Head of US Commercial Development
- STB NO : Storebrand: Solvency Ratio Higher Than Mkt Expectations in 2Q
- TEL NO : Two Thai Panels Oppose True-Total Access Merger: Bangkok Post
- HO FP : Thales Agrees to Buy Cybersecurity Firm OneWelcome for EU100m
- TRYG DC : Tryg 2Q Combined Ratio Reported Beats Estimates
- UN01 GY : Uniper, EDF's Cases Portend New State Aid as EU Gas Crisis Rages
- WRT1V FH : Wartsila Wins Energy Storage Order From Clearway Energy