US equity futures fell Thursday and the dollar climbed after high US inflation hardened expectations for more aggressive Federal Reserve monetary tightening that could trigger a recession. S&P 500 and Nasdaq 100 contracts retreated while European futures wavered. An Asian share index dropped for the third time in four days. Traders have shifted toward expectations of an historic one percentage-point Fed interest-rate hike later this month after the US consumer-price gauge clocked a 9.1% annual climb. Fed Bank of Atlanta President Raphael Bostic said “everything is in play” to combat price pressures. The dollar pushed higher, hovering around the highest level in over two years. Treasury two-year yields, sensitive to imminent Fed moves, climbed while longer-maturity rates were more stable. The inversion between two-year and 10-year yields -- a potential recession indicator -- is the deepest since 2000. The euro fell back toward $1 after briefly dipping below it Wednesday. The yen sank. Oil hovered at $96 a barrel. Bitcoin rallied past $20,000, weathering the bankruptcy filing of crypto lender Celsius Network.
In Singapore, the city state’s currency strengthened on an unexpected tightening of monetary settings, part of a global wave of steps to curb the cost of living. Australian bond yields surged on a strong jobs report, which boosted the case for a further increase in borrowing costs there too. The big question for markets is whether the latest US inflation print marks the peak. Commodity prices, pushed up this year in part by supply disruptions related to Russia’s war in Ukraine, have moderated somewhat of late. But if higher costs prove to be persistent and come alongside a global economy buckling under rate hikes, that could be toxic for a range of assets already nursing heavy losses in 2022. The earnings season is the next test for markets, kicked off in the US by JPMorgan Chase & Co. and Morgan Stanley on Thursday. US After Hours TBPH +25.7% and INVA +9.6% jump on deal to sell Trelegy assets; AZTA -11% falls on weak guidance; NVAX -0.9% vaccine gets approved
Nikkei +0.62% Hang Seng -0.71% CSI -0.01% Shanghai -0.10% Shenzen +0.80%
Eur$ 1.0022 CNH 6.7397 CNY 6.7313 JPY 138.59 GBP 1.1848 CHF 0.9827 RUB 60.4049 TRY 14.4575 WTI$ 96.18 -0.16% Golds 1,724.30 -0.63% BTC 19,927 +1.40% ETH 1,095.37 +1.83%
S&P -0.47% Nasdaq -0.54% EuroStoxx -0.20% FTSE -0.09% Dax -0.14% SMI -0.22%
Macro :
- Fed’s Beige Book Shows Housing Stays Costly, Demand Softens
- JPMorgan Says Bitcoin Cost of Production May Be Down to $13,000
- Millennium’s East53 Capital Closing After Twitter, Citrix Bets
- Convertibles Evaporate at Fastest Pace Since 2011: ECM Watch
- Permira Hits $16 Billion Milestone for New Flagship Buyout Fund
- UK Defense Firms to Benefit From Tory Leadership Contest: Citi
Keep an eye on :
- AF FP : Apollo to Invest EU500m in Air France Affiliate
- ALLN SW : Allreal CEO Roger Herzog to Step Down in Spring 2023
- ASHM LN : Ashmore 4Q Net Outflows $6.6B
- ATO FP : Atos Sees Limited Impacts From Credit Rating Cut
- AZA SS : Avanza 2Q Operating Income Misses Estimates
- BAYN GY : Bayer to Sell Men’s Health Product Nebido for up to EU500m
- DPH LN : Dechra Pharmaceuticals Places EUR50M 7yr, EU100M 10yr Notes
- DTE GY : Deutsche Telekom Sells Towers to Brookfield-DigitalBridge
- FME GY : DOJ Files Medicare Fraud Claim Against Fresenius; Shares Fall
- GOOGL US : Italy’s Competition Authority Starts Probe Against Google
- BOSS GY :Hugo Boss Boosts FY Sales Forecast, Beats Estimates
- MYCR SS : Mycronic 2Q Ebit SEK224M Vs. SEK241M Y/y
- RWI LN : Renewi 1Q Trading in Line With Expectations
- SSE LN : Worley Consortium Gets Contract From SSE Thermal
- SVT LN : Severn Trent Sees at Least £50M Customer ODI Payments in FY ’23
- TSLA US : Inverse Tesla Bet Is Among First Single-Stock ETFs to Hit US
- WALB SS : Wallenstam 2Q Rental Income Meets Estimates