US equity futures gained while Treasuries and the dollar slipped, in a sign that traders are weighing the efforts by the US and its allies to prevent further escalation of the Israel-Hamas conflict. The run for haven assets seen last week eased as markets wait on further developments in the Middle East. Treasury 10-year yields rose five basis points on Monday after dropping 19 basis points last week. Meanwhile Japanese, Australian and South Korean shares declined, following on Friday’s decline by the S&P 500. Stocks slipped in mainland China despite the central bank making the biggest medium-term liquidity injection since 2020. Oil held onto gains made Friday and traded in a narrow range as US officials rushed to speak with Middle Eastern nations — including back-channel talks with Iran — to contain the conflict. A sharper escalation could bring Israel into a direct clash with Iran, a supplier of arms and money to Hamas, which the US and the European Union have designated a terrorist group. In that scenario, Bloomberg Economics estimates oil prices may soar to $150 and tip the world economy into recession. Headwinds in China’s markets are growing. The US has moved to tighten curbs on advanced chip technology and concerns continue about the mainland property sector. The People’s Bank of China injected a net 289 billion yuan ($39.6 billion) via a medium-term lending facility on Monday and kept the policy rate unchanged at 2.5%. The US said it will tighten sweeping measures that restrict China’s access to advanced semi-conductors and chip making gear in a bid to prevent its geopolitical rival from getting a military edge. In currencies, New Zealand’s dollar led gains among major peers after the country elected a center-right government on Saturday. Poland’s zloty jumped as a bloc of pro-European opposition parties appeared on track to unseat the nationalist government. Big Tech sold off on Friday in New York, with the Nasdaq 100 down over 1%. Boeing Co. sank after saying it’s investigating quality issues affecting the 737 Max aircraft. JPMorgan Chase & Co. and Wells Fargo & Co. gained on solid earnings. Jamie Dimon on Friday warned of serious geopolitical risks from a widening Israel-Hamas conflict. Markets will also be parsing key economic data this week to gauge the health of the global economy. Among the highlights are Chinese growth data, inflation readings in Japan and New Zealand as well as central bank decisions in China, Indonesia and South Korea. Meantime, Fed chairman Jerome Powell is set to speak later this week following a string of stronger than expected data readings.
Nikkei -2.20% Hang Seng -1.02% CSI -1.00% Shanghai -0.53% Shenzen -1.15%
Eur$ 1.0526 CNH 7.3109 CNY 7.3088 JPY 149.44 GBP 1.2160 CHF 0.9015 RUB 97.6942 TRY 27.8430 WTI$ 87.74 Gold 1,920 -0.67% BTC 27,277 +0.27% ETH 1,564 -0.02%
S&P +0.10% Nasdaq +0.16% EuroStoxx +0.07% FTSE +0.20% Dax +0.05% SMI +0.11%
Macro :
- Morgan Stanley’s Wilson Sees US Stocks on ‘Boom-Bust-Boom’ Path
- Poland’s Pro-EU Opposition Set for Majority, Exit Poll Shows
- Gold Billionaire Sawiris Eyes Stake in $7 Billion Reko Diq Mine
- Israel-Related Stocks in Focus as US Pushes to Avert Wider War
- Thailand Extends Russian Visitors’ Length of Stay to 90 Days
Keep an eye on :
Keep an eye on :
- AIR FP : Boeing Suppliers Fall Amid Ongoing 737 Quality Issues
- ALB US : Albemarle Abandons Takeover Offer for Liontown Resources
- ATO FP : Atos Chair Bertrand Meunier Is Set to Step Down, FT Says
- ATO FP : Atos Sees Planned Tech Foundations Sale Completing in 2Q24
- BMW GY : Fin24: Sasol, BMW and Anglo American to ink new agreement for green hydrogen
- CO FP : Casino Group to Extend Last Accession Date to October 17
- CO FP : Grupo Calleja to Buy Exito Group for $0.9053/Share in Cash
- DVT FP : Solutions by STC Signs SPA for 40% Stake in Devoteam Middle East
- DIS US : Sony Initiates Talks to Buy Disney’s India Business: Mint
- DNO NO : DNO’s 3Q Kurdistan Gross Operated Production 25,984 Boepd
- ERG IM : ERG in Pact for Buyback of up to 3.76M Treasury Shares
- HEIJM NA : Heijmans to Release €15M Provision After Final Wintrack Ruling
- KGX GY : Kion Lifts Full-Year Ebit Guidance on Pricing
- RACE IM : Ferrari Begins to Take Crypto as Payment for Cars in US: Reuters
- MMB FP : Lagardere 3Q Like-for-Like Sales +9.6%
- LLOY LN : Lloyds Targets Family Firm Ahead of Telegraph Sale, Times Says
- MB FP : Glass Lewis Supports Mediobanca’s Slate for Board
- MB FP : Glass Lewis Supports Mediobanca’s Slate for Board
- NWG LN : NatWest Plans to Resolve Ex-CEO’s Payoff Before Earnings: Sky
- NWSA US : Activist Builds News Corp Stake, Plans to Seek Changes -- WSJ
- NVAX US : EU Delays Approval of Novavax’s Revised Covid Jab: FT
- ORDI NA : Sopra Steria to Initiate Squeeze-Out Proceedings for Ordina
- SAN SM : Santander Prepares $250m Expansion of Investment Bank: FT
- SHEL LN : Aramco Is Said to Study Potential Bid for Shell’s Pakistan Unit
- SHEL LN : Shell, Saudi Investor in Alliance for Egypt’s Wataniya: Al-Borsa
- GLE FP : SocGen’s ALD-Leaseplan Unit to Operate Under New Brand Ayvens
- TEG GY : TAG Immobilien Appoints Claudia Hoyer, Martin Thiel as Co-CEOs
- THG LN : THG Considers Listing Myprotein Nutrition Unit in US: Telegraph
- MF FP : Wendel Is Said to Explore Acquisition of Buyout Firm IK Partners