Asian stocks, bonds and currencies tumbled in the wake of the broad-based selloff on Wall Street after hotter-than-expected inflation data fueled bets for jumbo interest-rate hikes by the Federal Reserve. Equity indexes in Japan, Hong Kong and Australia slumped after US shares had their biggest drop in more than two years, with the S&P 500 falling more than 4% and the Nasdaq 100 sliding more than 5%. European equity futures fell while US contracts edged higher. Japan’s 10-year bond yield rose to 0.25%, the upper end of the central bank’s policy band while the yen fluctuated below the key 145 level versus the dollar. The finance minister warned that Japan wouldn’t rule out any response if current trends in the yen continued and those options included stepping into markets. Swaps traders are certain the Fed will raise interest rates three-quarters of a percentage point next week with some wagers appearing for a full-point move. That leaves investors weighing the prospect of tighter conditions across a swath of markets after jumping back into risk-sensitive assets in recent days on hopes that inflation would cool more. The two-year Treasury yield, the most sensitive to policy changes, climbed further in Asia after jumping as much as 22 basis points, pushing it more than 30 basis points above the 10-year rate and deepening an inversion in what is generally a recession warning. Australia’s benchmark 10-year yield jumped 10 basis points. The US consumer price index increased 0.1% from July, after no change in the prior month, Labor Department data showed. From a year earlier, prices climbed 8.3%, a slight deceleration but still more than the median estimate of 8.1%. So-called core CPI, which strips out the more volatile food and energy components, also topped forecasts.
Nikkei -2.58% Hang Seng -2.50% CSI -1.33% Shanghai -1.02% Shenzen -1.52%
Eur$ 1 CNH 6.9627 CNY 6.9592 JPY 143.75 GBP 1.1526 CHF 0.9604 RUB 61.9745 TRY 18.2552 WTI$86.78 -0.62% Gold 1,704 +0.10% BTC 20,386 +0.72% ETH 1,616 +0.50%
S&P -0.06% Nasdaq -0.10% EuroStoxx -0.89% FTSE -0.82% Dax -0.84% SMI -0.69%
Macro :
- *FRANCE CUTS 2023 GDP FORECAST TO 1% FROM 1.4% PREVIOUSLY
- UK Weighs Strength of Treasury’s Power to Overrule Regulators
- Citi Sees Growing Risk That World Economy Will Hit ‘Stall Speed’
- Gundlach Tells CNBC He ‘Would Do 25 Basis Points’ After CPI
- Goldman Says Get Ready for Fresh Cross-Asset Pain on Real Rates
Keep an eye on :
- AF FP : France Halves Flight Schedules on Air Traffic Control Strike
- AKERO NO : Akero Soars 143% After ‘Watershed’ NASH Study Data: Street Wrap
- ANTIN FP : Antin 1H Underlying Ebitda EU48.0M Vs. EU51.3M Y/y
- AAPL US : Apple to Use TSMC’s Next 3-NM Chip in iPhone, Mac, Nikkei Says
- AML LN : Aston Martin Faces Lawsuit From Two Ex-Dealers Over Valkyrie: FT
- CARY SS : SEB Investment Management to Accept Cary Group Offer
- EDF FP : EDF Renewables North America in Pact With McDonald’s
- EDF FP : Reactor at UK’s Heysham 2 Nuclear Plant Has Unplanned Halt: Data
- ETL FP : French Regulator Reviews Eutelsat’s Russian Channels
- 656 HK : Chinese Conglomerate Fosun Under Scrutiny as Bonds, Shares Slide -9.59%
- IBS SM : Iberdrola Sells 49% of Wikinger Wind Farm’s Owner for EU700M
- IBS PL : Ibersol 1H Net Income EU3.7M Vs. Loss EU22.9M Y/y
- ITX SM : Inditex 1H Net Sales Beats Estimates
- JOUL LN : Joules Says Talks on Next Buying Equity Stake Have Ended
- KGX GY : Kion Sees FY Revenue EU10.45B to EU11.25B, Est. EU11.23B
- LHA GY : German Govt Offer of ~74.4m Lufthansa Shrs Prices at EU6.11/Shr
- LHA GY : Germany Ends Participation in Lufthansa After Stake Placement
- META US : Korea Fines Google, Meta $73m for Data Collection Rule Violation
- MILDEF SS : Mildef Group Offers SEK150 million Shares via SEB
- PAH3 GY : Porsche IPO Draws Commitments From Red Bull Founder, Norway Fund
- ROTH FP : Rothschild Is Said to Hire Former JPMorgan Swiss Head Bossart
- STLA IM : Stellantis to Buy Back Shares From GM for EU923.2m
- UN01 GY : Uniper Mulls Damage Claims Against Gazprom in Sweden: Reuters
- VOLVB SS : Volvo Trucks Starts Series Production of Heavy Electric Trucks