Global stocks headed for their biggest weekly decline in more than three months following a spate of central bank rate hikes that have pushed up bond yields and heightened fears of recession. European equity futures fell about 0.4% Friday, as did contracts for US benchmarks, taking little relief from Treasury Secretary Janet Yellen’s view that the risk of a US economic contraction was declining. She suggested that a slowdown in consumer spending may be the price to pay for finishing the campaign to contain inflation.
Japanese shares erased initial gains Friday and fell more than 1% as investors turned their attention to speed bumps that are likely to slow this year’s blistering rally in Tokyo. Asia’s biggest losses were in Hong Kong, where traders played catch-up following a holiday Thursday. Friday’s decline extended the run of losses to four straight days amid concern that even if China does provide more aid for the economy, it won’t have a major impact on markets. Treasury two-year yields hovered around 4.78% and near the highest since March after Federal Reserve Chair Jerome Powell said the US may need one or two more rate increases in 2023. Rate hikes from policymakers in England, Norway and Switzerland underscored the upward pressure on bond yields. The yields rose on Australian and and New Zealand 10-year bonds Friday. Signs of risk aversion were also on show in currency markets, with a gauge of dollar strength rising 0.3% as commodity currencies including the Australian dollar and the Norwegian krone slumped. The yen resumed its recent depreciation, a move that has stoked speculation that authorities in Tokyo may turn to verbal intervention. Stronger-than-expected inflation also fueled suggestions that the Bank of Japan may adjust its price forecasts or tweak its ultra-loose monetary policy. Elsewhere, stocks linked to Adani Group declined after Bloomberg reported that US authorities opened an inquiry into the statements by the group during meetings with investors in the US. In commodities, oil fell more than 1%, adding to a slump in excess of 4% on Thursday as worries about high interest rates rattled investors, overshadowing a drop in US crude inventories. Gold was set for its biggest weekly drop since early February.
Macro :
- Fed Stress Tests Banks, Nike, Carnival: Week Ahead in Functions
- Global Construction Fundamentals Obscured by Eroding Sentiment
- Goldman, BofA Diverge on European Stock Outlook for Rest of 2023
- Greeks Vote Again With Investment Grade Close: What to Watch
- Qatar’s Wealth Fund to Buy Stake in NBA’s Washington Wizards
Keep an eye on :
Keep an eye on :
- AC FP : Accor Sells, Leases Back Paris Headquarters in €460 Million Deal
- AIR FP : Airbus Outsells Boeing as Focus Shifts From Buying to Building
- ARD CN : Alimentation Couche-Tard Says TotalEnergies Accepts its 3.1-Billion Euro Offer for Some European Retail Assets
- CAP FP : Capgemini Buys Japan’s BTC Corp.; No Terms
- CARR US : Germany Approves Carrier Global’s €12 Billion Deal: Handelsblatt
- DTE GY : Hellenic Telecom Issued Bond, Deutsche Telekom Fully Subscribes
- DORIL NO : Dolphin Drilling Offering Prices at NOK7.50/Share
- 9638 HK : Ferretti Prices Euronext Milan Offering at €3.00/Share
- GSK LN : GSK Settles Zantac Lawsuit Set for Trial in California
- HBH GY : Hornbach Holding 1Q Sales Meets Estimates, FY Outlook Confirmed
- ICPT US : Intercept Discontinues NASH Investment After FDA Letter
- NHY NO : Norsk Hydro Boosts Tender Price for Polish Alumetal Again
- NOVN SW : Biogen Lost Bid to Block Novartis Biosimilar: Health Wrap
- ROG SW : Roche to Divest Legacy Genentech Facility in Vacaville, CA
- SAZ GY : Borusan Holding to Buy BMBYH’s 23% Stake From Salzgitter
- SESL FP : SES-Imagotag Says Gotham City Report Has ‘Gross Inaccuracies’
- SESL FP : SES-Imagotag Says Gotham City Report Has ‘Gross Inaccuracies’
- ENR GY : Siemens Energy Shares Fall After Company Withdraws Outlook
- STR AV : Strabag Claims Court Win Over Sanctioned Shareholder Deripaska
- TIT IM : Telecom Italia to Start Exclusive Talks With KKR on Network Sale
- TKA GY : Thyssenkrupp Nucera IPO Range Set at €19-€21.50/Share: Terms
- TTE FP : Alimentation Couche-Tard Says TotalEnergies Accepts its 3.1-Billion Euro Offer for Some European Retail Assets
- VAR NO : Var Energi to Buy Neptune Assets for Enterprise Value $2.275B