Share market declines deepened in Asian trading amid diminishing odds of a soft economic landing after the Federal Reserve hiked interest rates by 75 basis points and signaled further aggressive tightening. Shares fell in China, Japan and South Korea while US futures dropped after the S&P 500’s slide overnight took it more than 20% below the record high in January. Chinese tech stocks led declines as Hong Kong’s benchmark equities gauge headed for lows last seen in 2011. A dollar gauge traded near a record high while the yen briefly weakened through 145 versus the greenback for the first time since 1998 after the Bank of Japan maintained ultra-loose monetary policy. Treasury two-year yields rose further above 4% to trade around the highest since 2007 as investors positioned for further rate hikes in the US. The 10-year yield erased some of Wednesday’s fall while still reflecting market worries of recession. Sentiment took an additional hit from Russia’s escalation of its war with Ukraine and tensions between Beijing and Taiwan. “After an initial bout of volatility in the first couple hours after the Fed hike, the market has clearly sided with the US dollar, which offers better carry and safe-haven appeal as downside US and global growth fears percolate,” said David Croy, a strategist at Australia & New Zealand Banking Group Ltd. Markets in Asia are also contending with a host of other central bank meetings in the region. Taiwan, Indonesia and the Philippines were all set to raise rates on Thursday. The euro was around the lowest in 20 years. South Korea’s won weakened past the 1,400 threshold to the greenback for the first time since 2009 and the yuan weakened even as China set its reference rate for the currency stronger-than-expected for a record 21st day. Gold fell to near a two-year low and was on the cusp of sinking into a bear market. Oil traded near $83 a barrel and bitcoin was under pressure below $19,000. US After Hours FUL +4.1% on earnings, CRM +2.6% on guidance, SCS -2.6% on earnings
Nikkei -0.56% Hang Seng -1.80% CSI -0.82% Shanghai -0.30% Shenzen -0.32%
Eur$ 0.9831 CNH 7.0970 CNY 7.0901 JPY 144.83 GBP 1.1243 CHF 0.9652 RUB 61.0121 TRY 18.3479 WTI$ 83.25 +0.37% Gold 1,661 -0.77% BTC 18,655-1.43% ETH 1,258 -4.25%
S&P -0.47% Nasdaq -0.68% EuroStoxx -1.69% FTSE -0.83% Dax -1.74% SMI -1.29%
Macro :
- Goldman’s Oppenheimer Sees S&P 500 Falling 10% If Recession Hits
- Powell Warns of Correction in Once ‘Red-Hot’ US Housing Market
- Bitcoin, Ether Drop as Fed Warning of Rate-Hike Pain Hits Crypto
Keep an eye on :
- ATL IM : Bank of Italy Authorizes Blackstone, Benettons’ Atlantia Bid
- BT/ LN : BT Group Workers to Strike on Four Days in October, Union Says
- CRI FP : Fribourg Increases Stake in Chargeurs to 26.46%
- CSGN SW : Credit Suisse Draws Up Plan to Resurrect ‘Bad Bank,’ FT Reports
- DBV FP : DBV Tech: Partial Clinical Hold on Vitesse Phase 3 Study
- LSG NO : Leroy Seafood Aims to Double Revenue by 2030, Boost Harvest
- DRLCO DC : Maersk Drilling Gets $24.7 Million Contract Extension
- MUV2 GY : Triple-Dip La Nina Threatens More Floods, Droughts and Cyclones
- NOVN SW : Novartis Says New Strategy Underpinned by Eight Sales Brands
- RIO LN : Rio Tinto CEO Says Russia Aluminum Imports Are Hurting US Profit
- SU FP : Aveva Investor M&G to Vote Against ‘Opportunistic’ Schneider Bid
- SUSE GY : SUSE 3Q Adjusted Ebitda $65.1M Vs. $55.2M, Reaffirms Guidance
- SREN SW : Triple-Dip La Nina Threatens More Floods, Droughts and Cyclones
- VIE FP : Veolia to Sell UK Waste Assets to Suez: M&A Snapshot
- VWS DC : Vestas to Outsource More Production Ahead of Growth, Borsen Says