Stocks fell and investors sought the safety of government bonds after shares of US regional banks tumbled on concerns about lending standards. Gold was poised for a ninth week of gains. The MSCI Asia Pacific Index fell 0.8%, with financial companies among the biggest losers. US equity-index futures fell 0.4%, after the underlying gauges dipped Thursday. Contracts indicated European shares were also set for a weaker open. Regional lenders slid in the US after the fallout from the collapse of subprime auto lender Tricolor Holdings spread beyond Wall Street. As investors positioned for safe havens, gold and silver hit new all-time highs, powered by fears about credit quality in the US economy and US-China trade tensions. Treasuries extended gains with the two-year yield falling to the lowest level since 2022 and the 10-year yield below 4%. An index of the dollar declined, while the yen strengthened past the 150 against the greenback. The Swiss franc also gained.
The moves highlighted growing concerns about the US credit market, serving as the clearest evidence of the nervous undercurrents recently plaguing Wall Street, after stocks rallied to record-high levels. That’s adding to a list of worries facing investors, including the US government shutdown, fears of an AI bubble and renewed US-China trade tensions. In other corners of the market, shares in Hong Kong dropped 1.6%, leading losses in Asia as tensions with the US continued to weigh on sentiment. A gauge of technology shares in Hong Kong tumbled 2.8%. Taiwan Semiconductor Manufacturing Co. dropped 1.7% in Taipei. The Treasury 10-year yield dropped three basis points to 3.94%, while similar-maturity Australian yields fell six basis points to 4.10%, the lowest level since April. “The rally we’re seeing in Treasuries today is a hunt for havens story,” said Anna Wu, cross-asset strategist at Van Eck Associates. “There’s arguably some knee-jerk reaction amid spikes of uncertainty from the credit woes.” Earlier, the S&P Regional Banks Select Industry Index plunged 6.3% on Thursday, its biggest decline since April’s tariff-induced selloff and an echo of the losses that rocked the sector during a crisis in 2023. Zions Bancorp fell 13% after a $50 million charge-off tied to a California Bank & Trust loan, while Western Alliance Bancorp dropped 11% after revealing exposure to the same borrowers. Two high-profile collapses in short order — last month’s implosion of auto lender Tricolor and the bankruptcy of auto-parts supplier First Brands Group — have put traders on alert for more bad news waiting in the wings. Asian bank stocks dropped as well. In trade news, the White House is poised to ease tariffs on the US auto industry, a move that would deliver a major win for carmakers that have aggressively lobbied to stem the fallout from record-level import duties. US-China trade tensions are once again emerging as a drag on equities, and the selloff in Asia and emerging markets could overshoot expectations given their stretched valuations, according to Morgan Stanley. Meanwhile, Bank of Japan Governor Kazuo Ueda indicated that the bank will continue normalizing policy if confidence in achieving its economic outlook strengthens — keeping the door open for a near-term interest-rate hike. Also in Japan, the likelihood of Japan’s ruling Liberal Democratic Party forming a new coalition with opposition party Ishin is 50-50, the leader of the smaller party said Friday, as key talks continue ahead of a parliamentary vote on who will lead the nation. In geopolitical news, President Donald Trump and his Russian counterpart Vladimir Putin agreed to meet in Budapest during a two-hour phone call. The conversation took place a day before Trump’s White House meeting with Ukrainian President Volodymyr Zelenskiy. Oil headed for a third weekly decline as investors focused on oversupply and the fallout from renewed US-China trade tensions. Brent was near $61 a barrel as Trump said he would hold a second meeting with Putin, raising the prospect that an increase of barrels from the OPEC+ member will exacerbate a global glut. US after Hours CSX +2.4% tracks higher on earnings; KZR +44.6% sharply higher on program update; LBRT -4.5% and IBKR lower on earnings; NVO -3.9% lower as President Trump says the cost of Ozempic will be reduced, according to Reuters.
Nikkei -1.42% Hang Seng -1.76% CSI -1.38% Shanghai -1.19% Shenzen -1.89%
Eur$ 1.1715 CNH 7.1247 CNY 7.1227 JPY 149.93 GBP 1.3457 CHF 0.7900 RUB 80.1416 TRY 41.9477 WTI$ 57.30 -0.28% Gold 4,361.58 +0.81% BTC 108,853 +0.89% ETH 3,921 .1.76%
S&P -0.69% Nasdaq -0.80% EuroStoxx -0.94% FTSE -1.11% Dax -1.26% SMI -1%
Macro :
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Keep an eye on :
Keep an eye on :
- AIR FP : French Antitrust Allows Airbus Purchase of Some Spirit Assets
- AAPL US : Apple’s iPhone Air sells out in minutes in China after CEO Tim Cook’s visit
- ASC LN : Asos Faces Custom Duties Claims From German Tax Authorities: FT
- ASMDEE SS : Asmodee Holder PAI Offers About 3.3m Shares: Terms, Asmodee Offering by Holder PAI Prices at SEK114.50/Share: Terms
- AZA SS : Avanza 3Q Operating Income Beats Estimates
- BFIT NA : Basic-Fit Maintains FY Revenue Forecast
- BBVA SM : BBVA’s Sabadell Takeover Bid Fails in Blow to Chairman Torres
- BITF CN : Bitfarms Prices Upsized $500m Convertible Senior Notes Due 2031
- BC IM : Brunello Cucinelli Confirms 3Q Results, FY25 Guidance
- CLNX SM : Cellnex to Sell French Data Centers for €391M
- COTN SW : Comet Sees FY Sales Low End of CHF460M to CHF500M
- CON GY : Continental Prelim 3Q Sales About EU5 billion
- CRWV US : CoreWeave Reaffirms Commitment to Proposed Core Scientific Deal
- EDF FP : EDF Must Review Ground Reinforcement for French Nuclear Project
- LLY US : Lilly, Novo Fall After Trump Touts ‘Much Lower’ Ozempic Price
- ENGI FP : Engie Energía Chile secures US$400mn multilateral loan facility
- EL FP : EssilorLuxottica 3Q Revenue in Constant Currency Beats Estimates
- RACE US : Ferrari Cut UK Vehicle Sales to Stem Falling Residual Values: FT
- GM US : GM, Vale Pause Battery Material Plans in Canada on EV Pullback
- GM US : GM, Vale Pause Battery Material Plans in Canada on EV Pullback
- IBE SM : Iberdrola Held Talks on Potential Scottish Power Merger: FT
- KVUE US : Kenvue Shares Sink as Citi Flags ‘Major’ Baby Powder Lawsuit
- MMB FP : Lagardere 3Q Revenue EU2.55B
- LULU US : Lululemon Faces More Pressure From Rival Alo’s Push into Brazil
- MC FP : LVMH-backed L Catterton invests around $30 million in Healing Hands Clinic
- MRK GY : Trump Strikes Deal With German Merck on Tariffs and IVF Costs
- NORION SS : Norion Bank 3Q Operating Profit Misses Estimates
- NOVOB DC : Lilly, Novo Fall After Trump Touts ‘Much Lower’ Ozempic Price
- NBG6 GY : Austria’s VIG to Buy Rival Nuernberger for About €1.4 Billion
- ORCL US : Oracle Rallies After Saying AI Cloud Gross Margin Can Be 35%
- ORA FP : Orange Denies Having Offered €4.8 Bln for 50% Masorange Stake
- P911 GY : Volkswagen CEO Blume to Give Up Porsche AG CEO Role, Bild Says
- ROG SW : Roche’s Xofluza Launches as Direct-To-Patient Program in US
- SAN FP : FDA Gives National Priority Vouchers to Nine Sponsors
- SMIN LN : Smiths Group to Sell Smiths Interconnect to Molex Electronic
- SLNO US : Soleno May Be Working With Advisers on Deal, Betaville Says
- STAA US : STAAR Says No Acquisition Proposals Received Other Than Alcon
- STLA US : Future of Ontario Stellantis Plant Hinges on USMCA, Carney Says
- 2330 TT : TSMC Drops as Traders Lock in Gains After Strong 3Q: Street Wrap
- TOM NO : Tomra 3Q Gross Margin 44% Vs. 43% Y/y
- VIG AV : Austria’s VIG to Buy Rival Nuernberger for About €1.4 Billion
- VIRP FP : Virbac Boosts FY Organic Revenue at Constant FX, Scope Forecast
- VOLVB SS : Volvo 3Q Net Sales Meet Estimates, Volvo 3Q Adjusted Operating Profit Beats Estimates
- WDP BB : WDP 9M Adjusted EPS EU1.15 Vs. EU1.09 Y/y
- YAR NO : Yara 3Q Adjusted Ebitda Beats Estimates