Asian stocks dropped and bond yields surged on Monday following a fresh high in American inflation that heaped pressure on the Federal Reserve to intensify monetary tightening. Equities shed more than 2% across Asian markets. Tech shares in Hong Kong declined 3%, weighing on the broader Hang Seng index. US futures slid, with Nasdaq 100 contracts down 1.8% and those for the S&P 500 1.3% lower. The declines come in the wake of steep losses on Wall Street that contributed to the worst drop in global shares last week since October 2020.
The yen weakened to the key psychological level of 135 per dollar, putting a 24-year low in sight, as Japan’s easy monetary policy increasingly stands at odds with developed-market peers hiking rates. Treasury yields surged across the curve, led by shorter maturities, with the two-year rising 10 basis points to the highest level since late 2007. Yields on 30-year Treasuries are below those on five-year notes, pointing to fears that sharp Fed interest-rate hikes will spark a hard economic landing. New Zealand’s 10-year bond yield topped 4% for the first time since 2014 in the slipstream of the moves in Treasuries. The dollar was stronger on haven demand amid the toxic mix of rising costs and slower growth. Risk sensitive crrencies like the Australian dollar weakened. Oil, one of the commodities stoking price gains, retreated to about $119 a barrel. Markets are also contending with Covid outbreaks in China, where Beijing and Shanghai resumed mass virus testing. The fear is China’s Covid-zero strategy will lead to repeated lockdowns that damage both its economy and global supply chains. The latter are also being affected by the war in Ukraine. The US consumer price index rose 8.6% in May from a year earlier -- a fresh 40-year high -- in a broad-based advance, adding to a slate of troubling inflation data globally. Many investors expect half-point Fed rate hikes this week and again in July and September. Barclays Plc and Jefferies LLC said an even bigger 75-basis-point move is possible at the June meeting.
Nikkei -2,93% Hang Seng -3,24% CSI -1,43% Shanghai -1,19% Shenzen -0,32%
Eur$ 1,0490 CNH 6,7555 CNY 6,7372 JPY 134,81 GBP 1,2278 CHF 0,9890 RUB 58,1346 TRY 17,2477 WTI$ 118,82 -1,45% Gold 1,864,16 -0,45% BTC 25,027 -8,4% ETH 1,316 -10,75%
S&P -1,58% Nasdaq -2,09% EuroStoxx -1,59% FTSE -0,79% Dax -1,61% SMI -1,20%
Macro :
- Bitcoin Drops to One-Month Low as US CPI Report Hurts Sentiment
- Quant Theorists Are Paid to Delude Themselves, Cam Harvey Says
- US Natgas Falls as LNG Terminal Outage Eclipses Hot-Weather Woes
- US Hurricane Season Will Hurt Everyone This Year: Julian Lee
- Swiss Sanctions on Russia Narrow Scope for Commodities Business
- Yen Hits Key 135 Level Amid BOJ’s Increasingly Isolated Policy
Keep an eye on :
- ACCEL NA : ASR Nederland Plans to Sell Its Stake in Accell: FD
- ADJ GY : Vonovia Open to Selling Adler Stake, CFO Tells Boersen-Zeitung
- ASRNL NA : ASR Nederland Plans to Sell Its Stake in Accell: FD
- ATO FP : Atos to Put IT Services in Separate Legal Entity: BFM Business
- BT/A LN : Billionaire Drahi Soon Gets a Fresh Shot at BT. Will He Take It?
- CPHN SW : CPH Group Raises Profit Forecast for Financial Year 2022
- DWS GY : SEC Investigating Goldman Sachs Over ESG Funds: DJ
- EDF FP : UK, EDF May Agree to Keep Coal Power Station Open for Winter: FT
- EMBRACB SS : Embracer CEO Says Swedish Values ‘Unwavering’ After Saudi Stake
- EBS AV : Cernko May Succeed Spalt as Erste Group CEO, Kurier Says
- ENX FP : Euronext: EDIM Deactivated for Some Equity Derivatives Contracts
- FER SM : New York to Start Construction of $9.5 Billion JFK Terminal
- HSVA LN : HSBC May Unlock $26.5 Billion in Asia Spin-Off: Report
- IBS PL : Ibersol Gets Revised Offer for Burger King Restaurants in Iberia
- Imcheck Therap : France’s ImCheck Therapeutics Secures $103M in Financing Round
- IIA AV : UBS Units Cut Immofinanz Stake Before Call to Scrap Dividend
- META US : Meta Scrutinizing Sheryl Sandberg's Use of Facebook Resources Over Several Years -- WSJ
- NFLX US : Bucket Studio Surges 22% as Netflix Confirms Squid Game Season 2
- ORP FP : Orpea Concludes Conciliation Protocol With Core Banking Pool
- RECSI NO : REC Silicon, Ferroglobe Sign Solar Supply Chain Expansion MOU
- RHM GY : Rheinmetall CEO Sees Revenue Boost on Defense Demand: BamS
- SAN FP : Sanofi-GSK: Covid-19 Booster Delivers Strong Immune Response
- SHEL LN : Workers Extend Strike at Shell’s Prelude LNG Facility By a Week
- GLE FP : SocGen Board Mandates Headhunter to Find Oudea Successor: Echos
- TEF SM : Predica Among Bidders for Telefonica’s Rural Fiber: Expansion
- TTE FP : TotalEnergies Wins Stake in $29 Billion Qatar Gas Project
- TLW LN : Workers Extend Strike at Shell’s Prelude LNG Facility By a Week
- VNA GY : Vonovia Open to Selling Adler Stake, CFO Tells Boersen-Zeitung