A slump in Chinese stocks took the shine off a rally in equities in other major Asia markets Monday while Treasury yields slipped from multiyear highs. Hong Kong’s benchmark share index dropped more than 4% as investors contended with the delayed release of China’s economic growth data and the conclusion of the party congress in Beijing, which saw Xi Jinping tighten his grip on power. Equities were higher in Japan, South Korea and Australia while US futures advanced after stocks on Wall Street had their best week since June. Trading in major currencies was choppy, with the yen swinging between gains and losses amid signs of a second intervention from Japanese authorities in two sessions. Volatility is set to continue, with the government’s efforts to curb rapid depreciation running counter to the Bank of Japan’s ultra-loose monetary policy. The pound lost most of an earlier spike higher that came as Boris Johnson pulled out of the race to lead the UK’s ruling Conservative Party, putting Rishi Sunak closer to becoming the next prime minister. More broadly across markets, investors are looking beyond the present state of aggressive monetary tightening by the Federal Reserve to the next phase, which may see a slowing or pause in interest-rate hikes. That’s providing support amid headwinds from the war in Ukraine to risks from China. The outcome Sunday of the party congress in Beijing suggests Xi’s Covid-zero campaign will continue to slow the economy and has also fueled speculation that his “common prosperity” goal may even lead to property and inheritance taxes. The offshore yuan weakened to approach a record low seen last week. The People’s Bank of China set the yuan fixing at 7.1230 per dollar, away from the recent pattern of near 7.11 per dollar. The S&P 500 jumped 2.4% Friday amid an increase in appetite for bullish US equity wagers following an equity rout that’s already erased $13 trillion in market value this year. Ten-year Treasury yields fell further on Monday, to below 4.20%, after reversing a surge on Friday. Yields also opened lower in Australia, led by the policy-sensitive three-year maturity.
Nikkei +0,61% Hang Seng -4,99% CSI -1,73% Shanghai -0,89% Shenzen -0,35%
Eur$ 0,9848 CNH 7,2653 CNY 7,2522 JPY 148,88 GBP 1,1344 CHF 0,9981 RUB 61,5898 TRY 18,5942 WTI$ 84,60 -0,50% Gold 1,658,40 +0,40% BTC 19,328 -0,80% ETH 1,347 +1,2%
S&P +0,03% Nasdaq +0,11% EuroStoxx +0,60% FTSE +0,02% Dax +0,64% SMI
Macro :
- Crypto Is More Attractive as SEC Gets Aggressive: MLIV Pulse
- Xi Stacks China Leadership Body With Allies, Cementing Control
- UK Outlook Revised to Negative by Moody’s Amid Political Drama
- UK Consults Private Equity Firms on Market Turmoil Effects: FT
- Wall Street Targets Saudi Arabia Oil Riches as US Spat Simmers
- After $13 Trillion Stock Crash, Signs of a Turn Are Now Mounting
- US Equity Preview: BA, HRL, IE, HOLX, LMT, MAT, PCAR, SLNH, TEVA
Keep an eye on :
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- BABA US : *ALIBABA FALLS AS MUCH AS 8.3% IN HK AMID BROAD CHINA SELLOFF
- ASC LN : Frasers Group Notified Asos It Has Significant Stake: Telegraph
- BMW GY : Mercedes, BMW, Audi New Electric Models Can Power 2023 Recovery
- CSGN SW : Janus, Blue Owl Eye Credit Suisse US Asset Management Arm: Rtrs
- DIE BB : D’Ieteren’s PHE in Talks to Sell Mondial Pare-Brise For €102m
- EDF FP : France to Reduce Discounted Power EDF Must Sell, Le Point Says
- GS US : Goldman Executives Clashed Over Retail Banking Strategy, FT Says
- HUBN SW : Huber+Suhner 9M Revenue CHF732.7M Vs. CHF645.4M Y/y
- IBE SM : Iberdrola Adds JPMorgan to Help Its CWP Renewables Bid, AFR Says
- ICAD FP : ICADE 9M Revenue EU1.25B Vs. EU1.22B Y/y
- ILCF IM : Illycaffe Revenue Rises, CEO Confirms Listing Plans: Corriere
- MC FP : Not All Luxury-Goods Makers Are Recession Proof: Earnings Watch
- MYOV US : Sumitovant Raises Offer to Buy Out Myovant to $27/Share in Cash
- NTGY SM : *IFM `CONFORTABLE' WITH NATURGY'S CURRENT STRUCTURE: SILES
- NOVN SW : Novartis Phase III Apply-PNH Trial Met Two Primary Endpoints
- OTEC NO : Bemobi Ends Buyback Program; Approves New Plan For 18 Months
- PHIA NA : Philips 3Q Adjusted Ebita Meets Estimates, Starts Restructuring, ~€300M Charges in Coming Quarters
- PAH3 GY : Porsche Eyes Ferrari Luxury, Tesla Tech After Consequential IPO
- RATOB SS : Ratos AB - Set up for Fundamental Purposes 3Q EPS Misses Est.
- RNO FP : Reuters: Technology-sharing a sticking point as Renault, Nissan hash out reset, sources say https://t.co/jbSeS2DRCe https
- SHEL LN : Shell Takes 9% Stake in Qatari Liquefied Gas Project
- SDR LN : Schroders CEO Sees More Bond Sales by Pension Funds, Figaro Says
- SOLB BB : Solvay Prelim 3Q Revenue About EU3.6B, Raises FY Guidance
- TSLA US : Tesla Cuts China Prices of All Domestically Made Car Models
- UN01 GY : *HABECK SEES GERMAN GAS SITUATION BETTER IN WINTER 2023/24: HB
- VOW GY : VW CEO Will Join German Chancellor on China Trip Next Month
- WBD IM : Webuild Grouping Wins Approx. €490m Rail Contract in Romania