Asian shares were mixed, European futures fell and Treasuries extended a rally on Thursday as investors weighed the risks of economic slowdown and the outlook for interest rates. The two-day drop in the yield on 10-year US government debt reached 22 basis points, putting the rate at the lowest level since mid September. Contracts for the S&P 500 also slid, following a 1.6% drop in the index Wednesday as the close correlation between bonds and stocks snapped. Hong Kong-listed equities fluctuated, with notable weakness in technology companies, while Japanese shares showed a decisive drop. The fall in Tokyo also reflected upward pressure on the yen after the central bank left policy settings unchanged Wednesday. Traders were again focused on the benchmark 10-year Japanese government bond yield amid expectations that it may start creeping back to toward the target ceiling of 0.5% after a sharp drop on Wednesday. It popped up by a basis point before slipping back to be unchanged at 0.41%. The yen resumed its advance after being whipsawed over the past 24 hours. A gauge of dollar strength traded little changed. Australian stocks erased losses and rallied, while bond yields extended their drop after the nation’s employment unexpectedly fell in December and the jobless rate held unchanged, casting doubt over another interest-rate increase in February. Market pricing for the terminal Fed funds rate fell by more than 50 basis points from a day earlier in a sign investors are anticipating a rapid slowdown to Federal Reserve interest rate hikes. Comments from Fed officials Wednesday, however, repeated calls for more hikes even after further signs the economy was softening and inflation cooling. Global bond sales so far this year have reached record levels as companies and governments around the world tap investors to raise hundreds of billions of dollars in capital. Oil fell for a second day as concerns over a US recession deepened and figures pointed to another build in inventories. Gold edged higher. US After Hours SMCI +3.1% on raised DecQ guidance; VRE -9.4% after Kushner Companies noted it is no longer interested in transaction, DFS -6.4%, AA -3.6%, FUL -2.9%, WTFC -2.1% down on earnings
Nikkei -1.44% Hang Seng -0.02% CSI +0.34% Shanghai +0.33% Shenzen +0.60%
Eur$ 1.0798 CNH 6.7789 CNY 6.7784 JPY 127.84 CHF 0.9162 RUB 68.8772 TRY 18.7934 WTI$ 78.28 -1.51% Gold 1,910 +0.32% BTC 20,834 +0.32% ETH 1,5230 +0.10%
S&P -0.15% Nasdaq -0.10% EuroStoxx -0.62% FTSE -0.44% Dax -0.57% SMI -0.51%
Macro :
- London’s Luxury Houses Are Defying Britain’s Home Sales Slowdown
Keep an eye on :
- AC FP : Accor $460 Million H-World Sale Conveys Asset-Light Plans: Reactfd
- AA US : Alcoa 4Q Adjusted Ebitda Misses Estimates: Snapshot
- BKT SM : Bankinter: Earnings Day Ahead
- SAB SM : Banco Sabadell to Early Redeem €400 Convertible Bond
- BEAN SW : Belimo FY Sales Beats Estimates
- BNP FP : BNP Paribas Hires Ex-Credit Suisse Private Bankers in Hong Kong
- BP/ LN : BP Toledo Refinery Repairs May Stall Full Restart Until late 2Q
- CARM FP : Carmila Holder AXA Offers 1.26m Shares via Goldman Sachs: Shares priced at EU12.60/sh
- CTM SS : Catena Media Prelim 4Q Adjusted EBITDA €12.7M
- Cosentino IPO : Cosentino Hires JPMorgan, Goldman Sachs for IPO Plan: Expansion
- BN FP : Danone Names Penchienati-Bosetta, Grant, Esser Deputy CEOs
- BN FP : Danone Names Penchienati-Bosetta, Grant, Esser Deputy CEOs
- Eurogroup Lamination IPO : Eurogroup Laminations Says It Plans to List on Euronext Milan
- GALE SW : Galenica to Propose Neuhaus for Board of Directors Chairman
- GEBN SW : Geberit 4Q Sales Misses Estimates
- Gubra IPO : Danish Biotech Company Gubra Plans IPO, Borsen Says
- IBE SM : IBEX Looks to Deep Cyclical Value as Valuation Discount Closes
- JYSK DC : Jyske Sees 2023 EPS DKK55 to DKK65
- MWTR NO : Meltwater Board Recommends Intended Share Offer: M&A Snapshot
- OMV AV : Mubadala, OMV to Explore Sustainable Fuel Projects in Pakistan
- ROG SM : Roche Says Tecentriq + Avastin Met Main Goal in Liver Cancer
- SECUB SS : Securitas Signs EU1.1B of Term Loan to Repay Bridge Facility
- SUSE GY : SUSE FY Adjusted Ebitda Misses Estimates
- TIT IM : Telecom Italia Kept Debt in Check at Year End After 2022 Surge
- TTE FP : Total CEO Urges French Motorists Not to Panic About Strike
- VWS DC : Vestas to Invest $300m in Wind Turbine Parts Factory in S. Korea
- VIRP FP : Virbac Sees FY Adj. Current Oper Income Margin About 15%
- ROSE SW : Zur Rose FY Revenue CHF1.61B