Asian stocks retreated as the Federal Reserve’s resolve to keep raising rates reduced the appetite for riskier assets. The yen strengthened on speculation that a shift is on the horizon for Japan’s monetary regime.
Shares dropped across the region, while US equity futures ticked higher after the S&P 500 and the tech-heavy Nasdaq 100 closed lower for a third day on Friday. The yen extended gains for the second day and the yield on Japan’s benchmark five-year note climbed to the highest level in more than seven years. The moves were supported by a report that the Japanese prime minister may consider allowing more flexibility in the monetary framework. A top government spokesman denied the report. If such flexibility does translate into an exit from Japan’s yield-curve control policy or if it suggests a higher target for the 10-year government bond yield, “the markets will absolutely interpret that as bullish yen. At the same time, the dollar fell versus most of its major counterparts as investors cut long bets in the greenback while weighing the Fed’s outlook on rates. Yields on US Treasuries edged higher, with the policy-sensitive two-year Treasury at around 4.2%. Government bond yields rose in Australia and fell New Zealand. The risk of higher interest rates pushing the US into recession in 2023 is casting a pall over trading that’s winding down into year end. Investors had cheered softer-than-expected US inflation data last week but that euphoria faded as Fed officials hammered home the message that rates would go higher for longer until they’re confident inflation has been subdued. A wave of rate hikes and hawkish outlooks from central banks across the globe, including the European Central Bank, have further bruised sentiment. traders are keeping an eye on a surge of Covid infections in China and a pledge by China’s top leaders to focus on boosting the economy next year, hinting at business-friendly policies, further support for the property market while likely scaling back fiscal stimulus. In commodities, oil climbed on China’s pledge to revive consumption and move by the US to refill its strategic crude reserves. Gold was little changed.
Nikkei -1,05% Hang Seng -0,45% CSI -1,03% Shanghai -1,31% Shenzen -1,13%
Eur$ 1,0608 CNH 6,9823 CNY 6,9823 JPY 136,21 GBP 1,2178 CHF 0,9323 RUB 64,7669 TRY 18,6467 WTI$ 75,08 +1% Gold 1,793,20 BTC 16,720,50 ETH 1,183
S&P +0,20% Nasdaq +0,22% EuroStoxx +0,29% FTSE +0,24% Dax +0,31% SMI +0.11%
Macro :
- Morgan Stanley’s Wilson Says Peaking Inflation to Hurt Profits
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- EU Considers Lower Gas-Price Cap in Latest Plan to Limit Crisis
- Binance, Alone at the Top, Stirs ‘Too Big to Fail’ Crypto Worry
- Putin’s War Makes Russian Stocks World’s Worst With Grim Outlook
- Musk Asks Twitter Users to Decide If He Should Step Down (3)
Keep an eye on :
Keep an eye on :
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