The dollar soared after the White House talked down the prospect of a currency agreement to weaken the greenback and equities extended declines in Asia after hawkish comments from Federal Reserve policymakers. Global stocks were headed for the lowest level in almost two years as major market levels crumbled. Hong Kong’s Hang Seng benchmark was at a decade low, the yield on the US 10-year Treasury breached 4% for the first time since 2010 and a gauge of the greenback set another all-time high. European and US futures slid, extending a move that saw the S&P 500 cap its worst run since early 2020. Apple Inc. scrapped plans to increase iPhone production, further weighing on sentiment. The dollar’s rally brought further loses to the pound and the euro, while the onshore yuan fell to the weakest level against the greenback since the global financial crisis in 2008. The yen remained near the key 145 mark versus the dollar and within sight of levels that have drawn intervention from Japan. The move in the 10-year Treasury continues to reverberate through bond markets. The Bloomberg Global Aggregate Index of government and corporate bonds has lost more than 20% since end-December and is in the first bear market since its inception in 1990.
Fed official James Bullard reiterated the central bank’s determination to tame inflation with tighter monetary policy, increasing the divergence with Japan and China. The urgency in the tone from Bullard and his US colleagues also contrasts with the Bank of England, which looks like it will wait until the next scheduled meeting in November to address inflationary forces triggered by planned tax changes and government spending. Leaks to a gas pipeline between Russia and Western Europe were labeled as sabotage by US and German officials, ratcheting up friction with Vladimir Putin’s regime. Russia threatened to cut off gas to Ukraine’s allies in Europe and annexed a large chunk of Ukraine in the latest signs of escalating conflict. European gas prices rose while worries about slowing global growth weighed on other raw materials, sending a Bloomberg index of commodity prices to the lowest level since February. West Texas Intermediate crude fell to around $77 per barrel. The stronger dollar and signs of growing US stockpiles countered speculation that OPEC+ will cut output. US After Hours SEC settles with various Wall Street firms for recordkeeping failures; FYBR +5.9% will join S&P Midcap 400; BB -4.5%, PRGS -0.9% lower on earnings.
Nikkei -2.09% Hang Seng -2.35% CSI -0.98% Shanghai -0.97% Shenzen -1.59%
Eur$ 0.9557 CNH 7.2330 CNY 7.2262 JPY 144.66 GBP 1.0682 CHF 0.9949 RUB 58.6936 TRY 18.4877 WTI$ 77.51 -1.26% Gold 1,623.80 - 0.31% BTC 18,845 -1.20% ETH 1,289.-260%
S&P -0.29% Nasdaq -0.56% EuroStoxx -0.66% FTSE -0.96% Dax -0.76% SMI -0.18%
Macro :
- Saudi King Salman Names Crown Prince as Prime Minister
- Morgan Stanley’s Wilson Says Stocks Can Get a Lift Into Earnings
- EU Eyes Ban on Nationals in Top Jobs at Russia State Enterprises
- Crypto Billionaire Bankman-Fried Eyeing Bid for Celsius Assets
Keep an eye on :
- AIR FP : Cathay in Talks With Boeing, Airbus to Refresh Aging Cargo Fleet
- BT/ A LN : BT Tops List of Cheap UK Stocks Attracting Takeover Speculation
- BRBY LN : Burberry Chief Creative Officer Riccardo Tisci to Step Down
- CBK GY : Commerzbank Sticks to 2022 Net Outlook Despite mBank Hit
- DBK GY : Deutsche Bank CEO Is Scenario Planning Amid Taiwan Tensions
- DUFN SW : Dufry Wins Duty-Paid Contract at China’s Chongqing Intl Airport
- EOAN GY : E.On Agrees With German Govt on Potential Continued Isar 2 Ops
- MBG GY : Mercedes, Volvo Call For Better EV Regulations in South Korea
- NHY NO : Hydro Curtails Aluminum Output at Norway Plants as Demand Drops
- PDG LN : Pendragon Conducting Review of All Potential Strategic Options
- PHARM NA : Pharming’s Leniolisib Gets FDA Acceptance For Priority Review
- RMG LN : Royal Mail Postal Workers Call 19 Days of Strike Action: Union
- SGO FP : Steelworkers, AFL-CIO Allege Threats to Workers at Mexico Plant
- SAN SM : Banco Santander Board Agrees on Shares Buyback, Dividend Payment
- TIT IM : Telecom Italia Director Luca de Meo Resigns From Board
- TWTR US : Elon Musk Asks Appeals Court to End His ‘Twitter Sitter’ Deal
- VWS DC : Vestas, Siemens Gamesa, Nordex Set for Uplift From UK Wind Plan
- DG FP : Vinci Steps Up Hydrogen Push With Stations, Airport Hub Plan
- WHA NA : Wereldhave Sees Dutch Tax Plan Impact of About -5% on EPRA EPS