Stocks and US equity futures fell Friday while bondsextended a rally as a looming economic slowdown drove another bout of risk aversion. An Asian share index dropped for a third day, led lower by Japan. In Taiwan, stocks slid again and were on track to enter a bear market. US futures shed about 1% after the worst first half for Wall Street since 1970.
The traditional havens of the dollar and the yen climbed while commodity-linked currencies were on the back foot. India’s rupeedropped to a record low. Treasuries added to gains -- leaving the 10-year yield below 3% -- in the wake of softer than expected US consumer spending and inflation. The data bolstered the view that sharp Federal Reserve interest-rate hikes will spark a recession. Traders also assessed President Xi Jinping’s speech on the 25th anniversary of Chinese rule in Hong Kong. Xi defended his crackdown on Hong Kong’s pro-democracy movement, adding the city should focus on economic development. Chinese equities are one of the few bright spots in global markets, following a recent rally that’s taken the CSI 300 Index to the cusp of a bull market. Easing Covid curbs and brighter economic signs have contributed to the rebound, though Chinese bourses posted modest losses on Friday. Notwithstanding a possible buffer from China, investors appear increasingly convinced that the global economy will slow markedly amid tightening monetary settings in many nations to quell runaway inflation. The latest US data showed inflation-adjusted personal spending shrankin May for the first time this year. Gains in the prior four months were revised down. Traders expect another 75-basis-point Fed rate increase in July. Swaps referencing policy meeting dates price in a peak rate near 3.5% in March 2023 and a drop to about 3% by year-end. crude held around $106 a barrel. Bitcoin jumped as much as 11% at one point and retook the $20,000 level. US After Hours MU -2.6% falls on earnings; FDA recommends inclusion of Omicron BA.4/5 component for COVID-19 vaccine booster doses
Nikkei -1.76% Hang Seng -0.62% CSI -0.32% Shanghai -0.18% Shenzen -0.07%
Eur$ 1.0451 CNH 6.7159 CNY 6.7064 JPY 135.14 GBP 1.2118 CHF 0.9568 RUB 54.4812 TRY 16.6987 WTI$ 105.48 - 0.27% Gold 1,802.50 -0.27% BTC 1,9690.30 +5% ETH 1,057.50 +4.70%
S&P -0.94% Nasdaq -1% EuroStoxx -0.87% FTSE -0.39% Dax -0.92% SMI -0.16%
Macro :
- ESG’s Regulatory ‘Shakeout’ Could Benefit Sector’s Do-Good Funds
- Ukraine Considering Debt-Restructuring Options as Payments Loom
- BlackRock’s China ETF Lures Record Cash Amid World-Beating Rally
Keep an eye on :
- ACKB BB : Ackermans Gets EU159m For Manuchar Stake, Sees EU97m Gain
- AF FP : Air France Plans to Cut Close to 300 Airport Staff: Le Figaro
- ALTN LN : Kazakh Oil Explorer MM Petroleum Files for Hong Kong IPO
- AZE BB : Azelis to Buy Chemical Partners, Provides No Financial Terms
- BMW GY : Jaguar Land Rover Hires Former Airbus, BMW Executive Bergmeier
- BON FP : Bonduelle to Sell 65% of Americas Long Life to FTQ, CDPQ
- BORR NO : Borr Drilling’s Necessary Covenant Waivers Extended to July 15
- BT/A LN : BT May Not be Quick to Blink on Summer Strike Action: React
- CRW LN : Craneware Offering by Holders Prices at GBP16/Share: Terms
- DBK GY : Deutsche Bank Names Markus Mueller ESG Chief Investment Officer
- RF FP : Eurazeo Leads EU160m Round in French EV Company Electra
- RACE IM : Ferrari Kicks Off ~EUR2b Share Buyback Program
- GMAB DC : Genmab to File AbbVie-Partnered Lymphoma Therapy With FDA in 2H
- IDE LN : Ide Group Says Performance is in Line With Expectations
- BAER SW : Julius Baer Settles Lithuanian Legacy Litigation for EU105m
- FFARM NA : Forfarmers UK to Acquire 2Agriculture; No Terms
- LONN SW : Lonza to Establish Drug Product Facility, Investment ~CHF500M
- EMG LN : Man Group Will Start New Share Buyback Program of up to $125m
- NKT DC : NKT Signs EUR1.4 Billion Turnkey Contract in US
- 1913 HK : Prada Seeks to Fashion Greener Luxury Brand Under Future CEO
- RNO FP : French June New Car Registrations Fall 14.2%: PFA
- SHEL LN : Shell Pauses Nigeria Asset Sale Pending Outcome of Court Case
- SIE GY : Benetton’s Atlantia Completes Purchase of Siemens Traffic Unit
- SRG IM : Snam CFO Alessandra Pasini to Resign; CEO to Be Interim CFO
- SRG IM : Italy to Spend EU4b to Support Filling of Gas Storages
- SW FP : Sodexo 3Q Revenue Beats Estimates
- STLA FP : French June New Car Registrations Fall 14.2%: PFA
- STLA IM : Stellantis to Cut Engine Line, Staff in Trenton: Detroit News
- SUN SW : Sulzer to Write Off Assets in Russia and Poland
- TIT IM : Telecom Italia Said to Reject CVC Bid for Business Unit
- TOBII SS : Tobii to Provide Technology for Sony’s Playstation VR2 Headset
- VGP BB : VGP to Buy Former Brownfield Near Rouen in First French Purchase
- DG FP : Vinci Consortium Wins EU305M Deal for New Zealand Road Project
- VOW GY : Lamborghini Boosts Investment Plan to EU1.8b, CEO Tells Sole
- W5 SS : W5 Solutions Offering of 1.08m Shares Prices at SEK60/Share
- WIE AV : Wienerberger Sees FY Adj Ebitda EU900M, Saw EU750M to EU770M
- WLN FP : Eurobank Transfers 80% of Cardlink to Worldline for EU254m