Stocks declined Tuesday as the rally in global equities lost momentum and investors fretted over China’s tepid post-pandemic recovery. European equity futures ticked lower, US contracts declined after Wall Street was shut for a holiday Monday and Hong Kong shares led declines in Asia, with the Hang Seng China Enterprises Index falling more than 2%. The broad negative moves pointed to further anxiety about Chinese growth and the lack of fresh stimulus from Beijing. Chinese property companies were among the decliners after disappointment at the magnitude of cuts by banks to their lending rates, with the 10-basis points reduction to the key five-year rate on Tuesday coming in less than some projections. The yen weakened to 142 versus the dollar as Japan’s loose monetary policy weighs on the currency. The yuan depreciated slightly, taking declines to a third day. The cost for banks to borrow Hong Kong dollars from each other for a month rose to the highest level since 2007. The move comes after prolonged currency intervention shrank the city’s liquidity pool and demand for cash climbed. The Australian dollar dropped 0.7% after minutes from the latest central bank decision — when rates were unexpectedly hiked — showed that the case to move in either direction was finely balanced. Australian stocks extended gains and short-term yields on government bonds changed direction and fell after the central bank minutes were released. US Treasury yields rose after the break from trading Monday. Meanwhile, with the path of Federal Reserve interest rates increasingly uncertain, US traders are vacillating between the lure of the rally and concern it’s exhausted and that the market has become overbought. Looking ahead, Fed Chair Jerome Powell will give his semi-annual report to Congress on Wednesday. Federal Reserve Bank of St. Louis President James Bullard and his counterparts in New York and Chicago are also among this week’s speakers. Policymakers at the Fed kept interest rates unchanged at their latest meeting but warned of more tightening ahead. The decision last week came with forecasts for higher borrowing costs of 5.6% in 2023, implying two additional quarter-point rate hikes or one half-point increase before the end of the year. Gold inched lower while oil fell as China’s plans to support its economy were seen as insufficient to reignite demand.
Macro :
- SPAIN TO END BIG FOUR LABOR PROBE WITH NO MAJOR SANCTION: CONFI
- SPAIN TO END BIG FOUR LABOR PROBE WITH NO MAJOR SANCTION: CONFI
- EU Prepares to Launch Adobe-Figma Antitrust Probe This Year: FT
Keep an eye on :
Keep an eye on :
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- BP/ LN : BP Withdraws Objection to Orsted’s UK Offshore Wind Farm
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- HKY NO : Havila Kystruten Offering of 688.9m Shares Prices at NOK1.10/Shr
- EQT SS : BPEA EQT-Led Group Buys HDFC Credila for $1.3 Billion
- FRAS LN : Frasers Group Discloses 4.32% Voting Rights in Currys Plc
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Rose 18% in May
- IGR LN : IG Design FY Revenue Misses Estimates
- DEC FP : JCDecaux Wins 6-Year Advertising Deal With Sporveien Media
- LAT FP : Latecoere Wins Boeing Wiring Systems Contracts
- LXS GY : Lanxess Set For Material Downgrades After Warning: Street Wrap
- LAZ US : Abu Dhabi’s ADQ, Lazard Deal Talks Held This Year Fell Apart: FT
- LOOK LN : Alpha Auto Group to Buy Lookers Plc for 120p/Share in Cash
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- NEOEN FP : Neoen Guidance Implies Meaningful Upside, Morgan Stanley Says
- OPG LN : OPG Power Ventures Says Performance is in Line With Market Views
- ORSTED DC : BP Withdraws Objection to Orsted’s UK Offshore Wind Farm
- OTEC NO : Otello to Start Share Buyback With Max Price of NOK15/Share
- SPIE FP : Spie Buys Enterprise Communications & Services GmbH; No Terms
- RNO FP : Renault CEO to Take on Leadership of EV Arm Ampere as Well
- SAGA LN : Saga Sees Earnings in Line With Guidance
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- SANN SW : Santhera Licenses Vamorolone in North America to Catalyst
- GLE FP : SocGen to Bring Securities Back-Office Ops in-House by 1H24
- SOW GY : Silver Lake Secured 41% of Software AG After Bain Sold Stake
- STLA IM : Stellantis, Foxconn Create Semiconductors JV SiliconAuto
- STLN SW : Oliver Streuli Named CFO of Rieter Group, Effective August 1
- TIT IM : Telecom Italia Board Examining Netco Offers From CdP and KKR
- SWEDA SS : Swedbank Reaches Deal With US OFAC to Make Payment of SEK37m
- UHR SW : Switzerland May Watch Exports Rose 14.4% Y/Y
- TIT IM : Telecom Italia Nears Picking KKR for Network Sale Negotiations
- TIT IM : Telecom Italia Nears Picking KKR for Network Sale Negotiations
- YIT GH : YIT Sees Potential to Release About €400M of Capital by End 2024