Asian equities fell while major currencies made gains against the dollar in a cautious open to the week following further weakness on Wall Street and a defiant message to the world from China’s Communist Party congress. Stocks dropped in Japan, Australia and Hong Kong, where technology companies led declines. Contracts for the S&P 500 and Nasdaq 100 rose after tumbling Friday, when Treasury yields climbed as year-ahead inflation expectations increased. US Yields trimmed that move in Asia on Monday. The dollar eased against its Group-of-10 counterparts, providing a touch of respite to harried currency markets. Traders remained on guard for possible intervention to support the yen, which is near a 32-year low and within reach of the key 150 level versus the greenback. The pound rallied on expectations that the UK may reverse more of its unfunded tax cuts. The outlook for consumer prices in the US continues to fuel bets that the Federal Reserve may make jumbo rate hikes at its next two meetings, further challenging global growth.
Against this negative backdrop, investors have to contend with news from Beijing, where President Xi Jinping said China’s global power had increased while warning of “dangerous storms” ahead. There were few signs of any let up in the Covid-Zero campaign or housing market policies that are weighing on the economy. Xi also said China would prevail in its fight to develop strategically important technology amid rising tension with the US. The offshore yuan extended gains versus the dollar after China’s central bank halted its cash withdrawal via medium term loans for the first time in three months in a bid to boost the economy. UK markets may be in for a particularly torrid week, with Britain’s beleaguered prime minister Liz Truss battling to rescue her premiership after the Bank of England ended its emergency bond-buying program on Friday. Fed officials in their latest comments suggested they were ready to hike rates higher than previously planned. Kansas City Fed President Esther George said the terminal rate may need to be higher to cool prices. San Francisco Fed’s Mary Daly said she’s “very supportive” of raising to restrictive levels and to between 4.5% and 5% “is the most likely outcome.” Corporate America offered some bright spots Friday, with big banks including JPMorgan Chase & Co. and Wells Fargo & Co. rising after reporting results, while Morgan Stanley fell as equity trading revenue disappointed. oil clawed back some losses after a weekly slump as fears over an economic slowdown continue to weigh on the outlook for demand. Gold steadied in Asia after a volatile week in which expectations of more aggressive rate hikes by the Fed boosted the dollar, weighing on the precious metal.
Nikkei -1.29% Hang Seng -0.58% CSI -0.09% Shanghai +0.25% Shenzen +0.38%
Eur$ 0.9739 CNH 7.2150 CNY 7.2009 JPY 148.73 GBP 1.1232 CHF 1.0035 RUB 62.8250 TRY 18.5810 WTI$ 86.24 +0.74% Gold 1,650 +0.34% BTC 19,240 -0.49% ETH 1,305 -0.41%
S&P +0.75% Nasdaq +0.89% EuroStoxx -0.21% FTSE -0.35% Dax -0.09% SMI +0.02%
Macro :
- Europe to Propose Dynamic Price Cap on Its Biggest Gas Exchange
- Big VIX Bets Roll In With Wager on ‘Fear Gauge’ Hitting 100
- UK in Talks With US LNG Producers for Major Buys: Sky
- Marshall Wace Hiring Commodities Head for $5 Billion Quant Fund
Keep an eye on :
- A2A IM : A2A, Margherita to Restructure Group Headed by Daunia Wind
- ACI US : Kroger’s Pursuit of Albertsons Hinged on Regulatory Strategy
- AIR FP : Boeing Gets Dragged Into Airbus-Qatar Dispute Over Max Deal
- BMW GY : BMW to Stop Making Electric Minis in UK as Focus Shifts to China
- ACA FP : Credit Agricole Unit to Acquire RBC Investor Svcs Ops in Europe
- CSGN SW : Credit Suisse Talks to Underwriters as It Weighs Capital Options
- CSGN SW :Credit Suisse Prepares To Sell Parts of Swiss Domestic Bank: FT
- DRW3 GY : Draegerwerk Prelim 3Q Net Sales About EU725M
- ETL FP : Eutelsat Says Hotbird 13F Satellite Successfully Launched
- FAST NA : Fastned Gets EU75M Investment From Schroders Via Placement
- FOXA US : News Corp., Fox Confirm They Will Explore Combination
- FOXA US : Lachlan Murdoch Would Consolidate Power in News Corp. Deal
- HYQ GY : Hypoport Says Mortgage Finance Market Contracted Sharply in 3Q
- ITV LN : ITV Explores Options for Its Production Arm ITV Studios: FT
- LHA GY : Eurowings Pilots Begin Second Strike in Less Than 2 Weeks: DPA
- B4B GY : Metro Will Only Sell India Business At Desired Valuation: ET
- MOWI NO : Mowi Prelim 3Q Ebit EU240M
- NTGY SM : *NATURGY SPINOFF `ISN'T CONVENIENT' RIGHT NOW: RIBERA TO CINCO
- NEL NO : Nel Gets NK600m Purchase Order From Woodside Energy
- PRX US : Prosus to Sell Russian Classifieds Business for $2.4 Billion
- TIT IM : Telecom Italia Puts Off Action on Bid as Key Investor Absent
- TEMN SW : Temenos Investor ‘Very Concerned’ After Forecast Hits Stock
- TSLA US : Tesla Won’t Make Batteries in Germany Before 2024: Handelsblatt
- VIRP FP : Virbac To Invest Around €40M in New Production Facility: Echos
- VOD LN : Vodafone Activist Cevian Is Said to Sell Majority of its Stake
- VOD LN : Vodafone Seeks to Finalize Vantage Stake Sale by Nov. 15: Rtrs
- VOW3 GY : European Car Sales’ 4Q Recovery Can't Rescue Full-Year Decline