Stocks and US equity futures fell Tuesday amid escalating US-China tension over Taiwan and deepening worries about a global economic slowdown, risks that supported demand for havens like Treasuries. An Asian share index slid the most in three weeks, with some of the steepest falls in Hong Kong, China and Taiwan. US and European futures were also in the red as July’s equity market rebound stumbled into August. US House Speaker Nancy Pelosi is set to land in Taiwan on Tuesday and would be the highest-ranking American politician to visit in 25 years. China views the island as its territory and has warned of consequences if the trip happens.
The visit may end up being another “short-term dislocation” for markets but “it’s always concerning when they do happen,” Ayako Yoshioka, senior portfolio consultant at Wealth Enhancement Group, said on Bloomberg Radio. The offshore yuan stabilized after retreating Monday, while Taiwan’s dollar weakened. Gains in the yen and gold hinted at the mood of caution in markets. Treasuries advanced, lowering the 10-year yield to about 2.55%. Bonds globally have pushed higher in the wake of data suggesting factory output is shrinking or cooling in key economies just as input prices moderate. The wide-ranging strains in US-China ties are exacerbating the geopolitical stress already buffeting markets from Russia’s war in Ukraine. nvestors are also keeping a wary eye out for more potentially hawkish comments from Federal Reserve officials about the need for higher interest rates to restrain elevated inflation. Exprectations for how aggressive the Fed must be have receded because of recession risk, so any shift in those perceptions could stoke market volatility. The prospect of a demand slowdown has sapped oil, leaving it around $93 a barrel. Oilseed and grain futures fell after the first grain ship since Russia’s invasion left Ukraine, heralding some relief for a tight global food market. US After Hours COWN +7.1% higher on WSJ report TD close to purchasing COWN; PINS +22.3%, ZI +12.5%, ANET +5% higher on earnings; WWD -8.4%, EBS -4.4%, RMBS -3.8% lower on earnings
Nikkei -1,55% Hang Seng -2,71% CSI -2,47% Shanghai -2,86% Shenzen-3,59%
Eur$ 1,0272 CNH 6,7816 CNY 6,7689 JPY 130,80 GBP 1,2256 CHF 0,9498 RUB 64,9883 TRY 17,9032 WTI$ 93,22 Gold 1,773,51 BTC 22,820 -1,2% ETH 1,575 -3%
S&P -0,48% Nasdaq -0,47% EuroStoxx -0,59% FTSE -0,69% Dax -0,70% SMI
Macro :
- Biden Team Tries to Blunt China Rage as Pelosi Heads for Taiwan
- Chinese Leaders Say GDP Goal Is Guidance, Not a Hard Target
- Biden Says Strike in Kabul Killed a Planner of 9/11 Attacks
- Billionaire Steve Cohen Exits Investment in Crypto Startup Radkl
- Oil Drops Ahead of OPEC+ as Traders Track Signs Tightness Easing
Keep an eye on:
- ATS AV : AT&S 1Q Ebitda EU137M
- ATVI US : Activision Blizzard 2Q Adj Rev Beats Estimates: Snapshot
- AG1 GY : Auto1 Adds Kennedy, Santelmann to Supervisory Board
- EN FP : Bouygues 1H Current Operating Income EU492M Vs. EU471M Y/y
- 1COV GY : Covestro 2Q Ebitda EU547M
- CSGN SW : Credit Suisse Downgraded to Baa2 by Moody's
- DBV FP : DBV Tech 1H Net Loss $39.7M
- DIC GY : DIC Asset 1H FFO EU53.0M Vs. EU53.0M Y/y
- DIE BB : Belgian July Car Registrations Slip 5.2%; D’Ieteren Has 21.3%
- RAC EIM : McLaren Extends Supercar-Brand Aura With Debut of $450 Sneakers
- G IM : Generali 1H Profit Beats Estimates on Higher Operating Income
- G IM : Generali to Start Up to EU500m Share Buyback
- GLEN LN : Glencore Is Cashing In on Coal to Dodge Big Mining’s Slowdown
- IBE SM : Greenvolt JV Sells Solar, Wind Portfolio in Poland to Iberdrola
- INRN SW : Interroll 1H Ebitda CHF52.4M Vs. CHF56.3M Y/y
- KRN GY : Krones 2Q Ebitda Beats Estimates
- LSCC US : Lattice Semi 2Q Adjusted EPS Beats Estimates
- MC FP : Estée Lauder in Talks to Buy Luxury Brand Tom Ford -- WSJ
- META US : Instagram’s Adam Mosseri to Temporarily Relocate to London: FT
- OCI NA : OCI 2Q Adjusted Ebitda Beats Estimates
- PFV GY : Pfeiffer Vacuum 2Q Sales EU224.7M Vs. EU199.5M Y/y
- PSH NA : Pershing Square Holdings July Net Performance +10.2%
- RBI AV : Raiffeisen 4.3-4.7 Billion Euro, 2022 NII Goal = Upside: React
- REV US : Revlon Climbs; Judge Okays $200m Borrowing Under Bankruptcy Loan
- SPM IM : Saipem Gets New ~EU300m Offshore E&C Contract Italy
- SFOR LN : Colin Day to Be Named S4 Capital’s Audit Committee Chair: Sky
- SGRE SM : Siemens Gamesa Cuts FY Sales Forecast
- SGRE SM : Siemens Gamesa Weighs Around 2,500 Job Cuts: Reuters
- SMCP FP : SMCP 1H Adjusted Ebitda EU121.8M Vs. EU98.5M Y/y
- STLA IM : Chrysler to Pay $300M in Emission Test Avoidance Penalties
- SY1 GY : Symrise 1H Ebitda Beats Estimates
- TEL NO : AIS Presses Regulator to Decide on Rivals’ Merger: Bangkok Post
- URW NA : Simon Property Boosts FY FFO per Share Forecast
- VLA FP : Valneva Signs Amdended Purchase Agreement In EU For Covid Jabs
- RIN FP : Vilmorin 4Q Like-for-Like Sales +12.5%
- VLTSA FP : Voltalia Names Sylvine Bouan as CFO
- VOW GY : Avis Shares Jump After 2Q Profit Beat; Hertz Also Gains (1)