Stocks declined in a cautious start on Monday as investors await a slew of interest rate decisions in the days ahead and after global equities notched their worst week since hitting this year’s low in June. Shares dropped in Hong Kong, Australia and South Korea, along with US stock futures. Trading may be muted by a holiday in Japan and the UK observing a day of mourning for Queen Elizabeth II, with no trading in cash Treasuries during the Asian and European sessions. The S&P 500 index fell almost 5% last week in its worst performance since June 17 while the rate sensitive 2-year Treasury yield ended at 3.87%. The weakness in markets reflects expectations for an outsized interest rate hike from the Federal Reserve on Wednesday and worries that its aggressive tightening to quell inflation will trigger a recession. Investors also face potential volatility from policy decisions this week by the Bank of England, the Bank of Japan and a host of other central banks. The British pound sank to its weakest level against the dollar since 1985 on Friday and the yen remains under pressure, though it has backed off from just below the key 145 level versus the dollar. A gauge of the greenback was little changed. The slump in global stocks deepened after hotter-than-expected inflation data spurred traders to ratchet up wagers for rate hikes. Swaps continue to price in a 75 basis-point hike when the Fed meets -- with some wagers leaning toward a full point. Traders briefly priced the Fed’s key policy rate peaking at 4.5% in March last week as the central bank escalates its effort to contain inflation. That expected peak was up by a full percentage point since the Fed’s last policy meeting in July. Oil climbed towards $86 per barrel as the Chinese city of Chengdu ended a two-week lockdown, boosting the outlook for demand. The offshore yuan extended its decline against the dollar even after the People’s Bank of China set a reference rate with a record bias toward the strong side after it warned companies against shorting the currency last week. Cryptocurrencies were also weighed by pre-Fed jitters. Bitcoin fell below $19,000 while Ether extended its drop after its blockchain was upgraded last week.
Nikkei -1,11% Hang Seng -0,96% CSI +0,14% Shanghai -0,16% Shenzen -0,55%
Eur$ 0,9997 CNH 7,0154 CNY 7,0081 JPY 143,17 GBP 1,1402 CHF 0,9660 RUB 60,4242 TRY 18,2662 WTI$ 85,51 +0,60% Gold 1,668-0,40% BTC 18,810 -5% ETH -5%
S&P -0,28% Nasdaq -0,52% EuroStoxx +0,11% FTSE Close Dax +0,22% SMI
Macro :
- Morgan Stanley Quant Sees Capitulation Risk Rising for Equities
- Goldman Cuts US Growth Forecast for 2023 After Rate Path Change
- Ether Falls to Lowest in Seven Weeks; Offshoot Token Plunges
- MS Says Mentality of Simply Buying Stocks and Bonds Is Breaking
- Crypto Drops on Pre-Fed Jitters as Ether Falls to Two-Month Low
Keep an eye on :
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- CNHI IM : CNH Industrial Starts First Tranche of $300m Share Buyback
- CSGN SW : Credit Suisse Considers Rebranding Investment Bank First Boston
- DTG GY : Electric Big Rigs Face Uphill Trip From Show Floor to Highways
- DIS US : Disney Shows Adjusted Pay Data by Race and Gender for First Time
- EDF FP : France’s EDF May Halt Power Exports to Italy for Two Years
- EQT SS : EQT Private Equity Sells Stake in GPA Global
- FUR NA : Fugro to Repay Part of EU91M Outstanding 2024 Bonds
- FUTR LN : Future PLC CEO Zillah Byng-Thorne Plans to Step Down, Sky Says
- GBG LN : GB Group Attracts Buyout Interest From Advent, KKR: Daily Mail
- KARO SS : EQT Has 94% of Karo Pharma Shares; Completes Offer
- LHA GY : Swiss Pilots Threaten Strike by Mid-October, Tages-Anzeiger Says
- MC FP : Watch Luxury Stocks as China Lifts Two-Week Lockdown in Chengdu
- NOVN SW : Novartis Pharma Sandoz: Rosalia Study Met Primary Endpoints
- TSLA US : Tesla Wants to Double German Sales in 2022, Automobilwoche Says
- VLA FP : Valneva, IDT Biologika Agree to Terminate Covid Vaccine Pact
- VAR NO : Var Energi Raises Balder X Gross Investment Estimate by $1.2b
- VOW GY : Tesla Wants to Double German Sales in 2022, Automobilwoche Says
- VOW GY : Volkswagen Seeks to Raise $9.4 Billion in Porsche IPO
- MF FP : Wendel Hires BPCE’s Laurent Mignon to Become CEO by Jan. 1
- WIX US : Hedge Fund Starboard Has Built Stake in Platform Wix.com: Rtrs