Sovereign bonds and U.S. equity futures fell Monday as economic risks from inflation and tightening monetary policy sapped sentiment. A key section of the Treasury yield curve inverted, stoking fears of a growth downturn. The U.S. 10-year Treasury yield climbed past 2.5%, above a technical trendline that has served as a ceiling since the late 1980s. The yield on the five-year note rose above the 30-year -- an inversion that’s heralded recessions in the past, and raises concerns about a policy misstep as the Federal Reserve hikes interest rates. S&P 500 and Nasdaq 100 contracts dipped and those for Europe climbed as investors also monitored Russia’s war in Ukraine, now in its second month. Asian shares were mixed, with a technology rally bolstering Hong Kong. China’s mobility curbs to stem a Covid outbreak weighed on crude oil. West Texas Intermediate slid to around $110 a barrel as a Covid-linked lockdown in Shanghai stirred concerns that China’s virus resurgence imperils oil demand. The yen declined after the Bank of Japan said it will purchase an unlimited amount of 10-year bonds at a fixed rate to check yields. The dollar rose. The war continues to disrupt supplies of key commodities, stoking inflation risks that are contributing to expectations of more aggressive Fed tightening. Traders are pricing in two full percentage points of Fed rate rises over the rest of 2022. Mobility restrictions in China may fan worries about rising costs. In cryptocurrencies, Bitcoin scaled $46,000 following a recent rally that’s enabled the digital token to erase losses and turn positive for the year.
Nikkei -0.55% Hang Seng +1.19% CSI -0.80% Shanghai -0.17% Shenzen -0.88%
Eur$ 1.0951 CNH 6.3919 CNY 6.3755 JPY123.10 GBP 1.3143 CHF 0.9338 RUB 99.4909 TRY 14.8355 WTI$110.30 -3.20% Gold 1,941.40 -0.96% BTC 47,250 +2.40% ETH 3,330 +2.85%
S&P -0.42% Nasdaq -0.58% EuroStoxx +0.16% FTSE +0.07% Dax +0.11% SMI +0.04%
Macro :
- Moscow Exchange to Expand Limited Trading to All Stocks Monday
- IPO Market Plunges 70% as Higher Rates, War Curb Risk Appetite
- Stocks Defying Bond-Market Danger Put Wall Street On Notice
- Kaspersky, China Telecom, China Mobile Added to FCC Threat List
- Roth Sees 95% Chance U.S. Opens China Solar Import Investigation
Keep an eye on :
- AED BB : Aedifica Buys German Care Home for About EU7.5m at 5% Yield
- ALTA FP : Primonial Shareholders Sue Altarea After Deal Dropped: Echos
- AMUN FP : Amundi Sets Up Equity Capital Markets Desk to Capture More Deals
- AAPL US : Apple Pays Another Round of Rare Bonuses to Some Staff
- CS FP : AXA Halts Insurance Deals on Russian-Owned Assets in Russia
- BATS LN : Scottish Widows to Exit Investment in Some Tobacco Firms: Times
- BAYN GY : Temasek Is Said to Push for Removal of Bayer CEO Werner Baumann
- BPT LN : Bridgepoint Acquires Majority Stake in U.K.’s Inspired Thinking
- IAG LN : British Airways Slows Flight Ramp-Up on New-Hire Logjam
- CPRI US : Versace Owner Capri Looking at Isabel Marant: Miss Tweed
- CSGN SW : Credit Suisse Pressured Over Absolving Execs on Greensill: FT
- ELM LN : Chemical Maker Elementis Said to Explore Sale of Chromium Unit
- ENG SM : Enagas, Omers to Sell Respective Stakes in Chile’s GNL Quintero
- ENGI FP : France to Build New LNG Terminal in Le Havre: Echos
- EVD GY : CTS Eventim-Kapsch JV Wins Germany Compensation Arbitration
- INPST NA : InPost Is Said to Draw Takeover Interest From Buyout Firms
- INSTA NO : Lunar to Buy Instabank for NOK3.75/Share in Cash
- KORI FP : France's Korian to Launch Shareholding Operation for Employees
- 3690 HK : Meituan Shares Surge as Much as 14% After Earnings Report
- NG/ LN : Macquarie Buys Stake in National Grid’s $13 Billion Gas Unit (1)
- QFUEL NO : Quantafuel Reaches Proof of Concept for Skive Recycling Plant
- RLF SW : Relief’s APR: Data Shows Possible Benefits for PKU Treatment
- RR/ LN : Rolls-Royce Shares Jump After Betaville ‘Uncooked Alert’ Mention
- SPM IM : Saipem Said to Be in Talks With KCA Deutag on Onshore Asset Sale
- UHR SW : Low-Priced Omega Speedmaster Prompts Global Swatch Store Chaos
- TIT IM : Telecom Italia Says Talks With KKR Still On, Received CVC Offer
- TIT IM : CVC Is Said to Bid for Stake in Telecom Italia’s Enterprise Unit
- TTE FP : France to Build New LNG Terminal in Le Havre: Echos
- UCB BB : UCB’s Fintepla Oral Solution Gets U.S. FDA Approval