Asian stocks advanced, as the focus shifted from Middle East tensions to company earnings and economic data for insight into the direction of central bank policy. Benchmarks across the region recouped some of last week’s slide as traders took comfort in the absence of further escalation from Iran following Israel’s retaliatory strike. The Hang Seng Index outperformed, with measures from Chinese authorities to bolster the city’s status as a financial hub giving an added boost.
Demand for safe havens eased, after traders last week were whipsawed by Middle East tensions as well as hawkish comments from Federal Reserve officials indicating reluctance to cut rates anytime soon. Oil and gold both fell. A Bloomberg dollar index slipped 0.1% while the yield on 10-year US Treasury yields advanced four basis points. Mainland Chinese shares declined as the country’s lenders kept the loan prime rates steady. Contracts for US equities edged higher after the S&P 500 recorded its worst week since March 2023 and the Nasdaq 100 fell over 2% on Friday, dragged lower by a 10% tumble in Nvidia. The US semiconductor giant’s decline spurred losses in Asian chip stocks Monday. Investors are recalibrating their positions after stronger-than-expected US data forced the Fed to reset the clock on its first interest rate cut. Data prints later in the week are likely to help finesse policy bets, with both US growth and the Fed’s preferred measure of inflation due.
Investors must also absorb a hefty slate of Treasuries auctions, a major test of whether yields have peaked for the year. Higher-than-expected interest rates amid persistent inflation are perceived as the biggest threat to financial stability among market participants and observers, the Fed said in its semiannual Financial Stability Report published Friday. More than half of the “Magnificent Seven” cohort of tech megacaps will report earnings this week — leaving investors wondering whether those firms are going to live up to the high expectations set for artificial intelligence. “Nevertheless, this may offer market participants the opportunity to watch for any signs of weakness in rallies to sell the rip.” Profits for the seven biggest growth companies in the S&P 500 — Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia, Meta Platforms Inc. and Tesla Inc. — are on course to surge 38% in the first quarter, according to Bloomberg Intelligence. When excluding them, the rest of the benchmark index’s profits are anticipated to shrink by 3.9%. Elsewhere this week, inflation readings in Australia and Malaysia are due. Bank Indonesia will give a policy decision just as the currency comes under pressure, while earnings at global growth bellwether Caterpillar are due.
Nikkei +0.48% Hang Seng +1.97% CSI -0.22% Shanghai -0.47% Shenzen -0.22%
Eur$ 1.0667 CNH 7.2509 CNY 7.2432 JPY 154.71 GBP 1.2389 CHF 0.9116 RUB 93.1090 TRY 32.5355 WTI$ 82.44 -0.84% Gold 2,370 -0.91% BTC 66,200 +2.40% ETH 3,220 +2.20%
S&P +0.35% Nasdaq +0.52% EuroStoxx +0.41% FTSE +0.77% Dax +0.36% SMI +0.73%
Macro :
- FDIC Mulls Tighter Checks on ‘Passive’ Investors in US Banks: FT
- Andurand Isn’t Buying Into Widespread Talk of a CO2-Credit Boom
- Shares of Junk-Bond Issuers to Slide Alongside Bonds: Macro View
- China’s New Stock Champions Face Growing Waves of Trade Probes
- US House Passes $95 Billion to Aid Ukraine, Israel, Taiwan
- US House Passes $95 Billion to Aid Ukraine, Israel, Taiwan
- Defense Companies Are Luring Germany’s Struggling Autoworkers
- Italy Survives S&P Scrutiny of Meloni’s Worsened Debt Trajectory
- UK Energy Bills Could Rise by £29 Billion on High Interest Rates
Keep an eye on :
Keep an eye on :
- ADS GY : Adidas Found Its Next Samba. Watch Out, Nike: Andrea Felsted
- AIR FP : Airbus Workers in Canada Reject a Tentative Labor Agreement
- AKRBP NO : Aker BP Starts Output From Hanz Discovery in North Sea
- ALO FP : Knorr-Bremse to Buy Alstom Signaling North America
- ALO FP : Knorr-Bremse to Buy Alstom Signaling North America
- AAPL US : Apple Needs a True Low-End iPhone to Revive Growth: Power On
- ATO FP : JDD Article
- ARYN SW : Aryzta 1Q Revenue EU514M
- BAS GY : BASF boss Brudermüller: “Germany is falling far short of its potential – that makes me angry” - Handelsblatt:
- BT/A LN : BT installs McKinsey partner to head new strategy unit
- CPR IM : Campari’s New Chief Says Now’s the Time to Boost Aperol in Asia
- CNHI US : Agnelli’s CNH Industrial Names Iveco’s Marx New Chief Executive
- CVC IPO : CVC Sets Amsterdam IPO Price Range €13/Shr to €15/Shr
- EMBRACB SS : Embracer to Split Into 3 Standalone Listed Entities
- GALP PL : Galp Says Namibia’s Mopane May Be Important Commercial Oil Find
- GTT FP : GTT 1Q Revenue EU144.8M Vs. EU79.9M Y/y
- GTT FP : GTT 1Q Revenue EU144.8M Vs. EU79.9M Y/y
- ICAD FP : ICADE 1Q Revenue EU322.0M Vs. EU286.7M Y/y
- IPN FP : Ipsen, Skyhawk Therapeutics Enter RNA Research Pact
- SONG LN : Sky News: Blackstone tunes up £1.2bn bid for Blondie music owner Hipgnosis
- SONG LN : Hipgnosis Plans to Recommend Blackstone Bid If Offer Is Made
- MeadowHall : Norway’s sovereign wealth fund to take control of Meadowhall
- MITRA BB : Mithra Secures Court Protection Measures
- NKE US : Nike Says Job Cuts at Oregon Headquarters to Total More Than 700
- 7201 JP : -2.50% Nissan Drops After Missing Annual Profit Forecast on Weak Sales
- NOBI SS : Nobia Says SEK1.26b Rights Issue Is Fully Subscribed
- NVDA US : Japan, Nvidia to Jointly Create Quantum Computing System: Nikkei
- OCDO LN : Ocado under pressure to abandon London for New York
- ROG SW : Pfizer May Loosen Roche Hold on $3.5 Billion ALK-Lung Market
- SAABB SS : Saab chief warns against EU defence protectionism
- SGSN SW : SGS to Pay About 65% of 2023 Dividend in New SGS Shares
- TSLA US : Tesla Cuts China, US Prices After Sales Slow, Inventories Rise
- TSLA US : Tesla Is Consumed by Chaos in Shift to Musk’s Robotaxi Dream
- TSLA US : Tesla’s Price Cuts Trigger New Round in China EV Price War
- VWS DC : Vestas Seeks to Hold Onto Higher Wind Power Prices
- VOW GY : Volkswagen Tennessee Plant Unionizes in Landmark Win for UAW
- VOW GY : Volkswagen to Face Investors Skeptical of China Turnaround Plan
- WLN FP : Worldline to Propose Three New Directors to Board
---> Key events this week:
- Eurozone consumer confidence, Monday
- Philippines and US military forces commence annual war games near Taiwan and South China Sea, Monday
- ECB President Christine Lagarde speaks, Monday
- Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Tuesday
- UK S&P Global, CIPS Manufacturing PMI, Tuesday
- Australia CPI, Wednesday
- Indonesia rate decision, Wednesday
- IBM, Boeing, Meta Platforms earnings, Wednesday
- Malaysia CPI, Thursday
- South Korea GDP, Thursday
- Turkey rate decision, Thursday
- US GDP, wholesale inventories, initial jobless claims, Thursday
- Microsoft, Alphabet, Airbus, Caterpillar earnings, Thursday
- Japan rate decision, Tokyo CPI, inflation and GDP forecasts, Friday
- US personal income and spending, University of Michigan consumer sentiment, Friday
- Exxon Mobil, Chevron earnings, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.2% as of 1:15 p.m. Tokyo time
- Nikkei 225 futures (OSE) rose 0.3%
- Japan’s Topix rose 0.8%
- Australia’s S&P/ASX 200 rose 0.8%
- Hong Kong’s Hang Seng rose 1.7%
- The Shanghai Composite fell 0.5%
- Euro Stoxx 50 futures rose 0.3%
- Nasdaq 100 futures rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $1.0664
- The Japanese yen was little changed at 154.72 per dollar
- The offshore yuan was little changed at 7.2514 per dollar
- The Australian dollar rose 0.3% to $0.6439
Cryptocurrencies
- Bitcoin rose 1.4% to $65,566.04
- Ether rose 1.2% to $3,187.54
Bonds
- The yield on 10-year Treasuries advanced four basis points to 4.66%
- Japan’s 10-year yield advanced three basis points to 0.875%
- Australia’s 10-year yield advanced eight basis points to 4.34%
Commodities
- West Texas Intermediate crude fell 0.8% to $82.51 a barrel
- Spot gold fell 0.9% to $2,371.12 an ounce