Stocks fell Monday as high inflation, tightening monetary policy and China’s Covid lockdowns deepened concerns about the economic outlook. Equities dropped in Japan, Australia and South Korea. S&P 500 and Nasdaq 100 futures stabilized after U.S. shares in April posted one of their worst monthly declines since the pandemic roiled markets in 2020. The stock slide, rising bond yields and dollar strength are tightening financial conditions ahead of looming U.S., U.K. and Australian interest-rate hikes. Treasuries held a Friday tumble, while bonds in Australia and New Zealand retreated. A dollar gaugewas around the highest level since 2020. The offshore yuan weakened in the wake of data signaling a sharp contraction in Chinese economic activity amid idled factories and snarled supply chains.
The Federal Reserve is expected to raise rates by 50 basis points Wednesday, the largest increase since 2000. The question is how high it needs to go to get runaway inflation under control -- and whether the aggressive tightening cycle that lies ahead will trigger a recession. Price pressures are being stoked by the elevated cost of commodities ranging from fuel to food, in part due to disruptions from Russia’s war in Ukraine. Those challenges could intensify: the European Union is set to propose a ban on Russian oil by the end of the year, with restrictions on imports introduced gradually until then, according to people familiar with the matter. Crude oil dipped but remained closed to $104 a barrel. Markets in China and Hong Kong are shut for holidays. Beijing will close gyms and cinemas over the Labor Day break and Shanghai will keep mobility curbs in place despite falling Covid cases. Chinese officials last week promised to scale up economic stimulus, which provided some respite for sentiment before Friday’s Wall Street slide.
Nikkei +0.26% Hang Seng Closed CSI Closed Shanghai Closed Shenzen Closed
Eur$ 1.0518 CNH 6.6812 CNY 6.6085 JPY 130.37 GBP 1.2548 CHF 0.9743 RUB 70.8160 TRY 14.8600 WTI$ 103.71 -0.95% Gold 1886.58 -0.55% BTC 39,000 +1.80% ETH 2,859.52 +1.60%
S&P +0.59% Nasdaq +0.79% EuroStoxx -1.58% FTSE Closed Dax -1.35% SMI -0.90%
Macro :
- *EINHORN’S GREENLIGHT CAPITAL DEFIES APRIL ROUT WITH 10.6% GAIN
- Bonds Are Suddenly Getting Love From Investors Hedging Recession
- CHINA APRIL MANUFACTURING PMI AT 47.4; EST. 47.3
- Ukraine Latest: Sanctions Can End When Russia Goes, Germany Says
Keep an eye on :
- ADJ GY : Adler Directors Offer Resignation After Disclaimer Opinion
- ADJ GY : Adler Posts $1.24 Billion Loss in Report Auditor Won’t Endorse
- ADJ GY : Landlord Vonovia Says Sale of Stake in Rival Adler Is an Option
- AIR FP : Qantas to Order Over 150 Airbus Aircraft, West Australian Says
- MT NA : ArcelorMittal successfully tests use of green hydrogen at Canadian plant
- BAYN GY : Bayer Shareholders Oppose Compensation Report at Annual Meeting
- COFB BB : Cofinimmo 1Q Operating Profit Misses Estimates
- CSGN SW : Credit Suisse Sued Over Alleged Dealings With Russian Oligarchs
- DOF NO : DOF, DOF Subsea Get Further Extension of Standstill Arrangements
- DBK GY : Glass Lewis for Abstaining on Deutsche Bank Management AGM Vote
- EVK GY : Evonik to Sell Assets That Make Up More Than 10% of Revenue: WAZ
- ISP IM : Italian Banks Can Weather Ukraine Fallout, Central Bank Says
- LEO GY : Leoni Prelim 1Q Adjusted Ebit Loss About EU17M
- LEO SS : MGM Resorts International to Buy LeoVegas for SEK61 Per Share
- DRLCO DC : Maersk Drilling Awarded More Three-Well Contract W/ Aker BP
- RATOB SS : Ratos 1Q Loss per Share SEK0.66 Vs. Loss/Shr SEK0.010 Y/y
- SALM NO : Salmar Says Conditions for Completing NTS Offer Are Fulfilled
- SIX2 GY : Sixt Sees Temporary Disruption on Some Ops After Cyberattack
- STM GY : Stabilus 2Q Adjusted Ebit Beats Estimates
- TUI1 GY : TUI Gets 1.3 Million Holiday Bookings in April, Reuters Says
- VWS DC : Vestas Cuts FY Revenue Forecast
- VOW GY : VW Picks Qualcomm for Automated Driving Chips From 2026: HB
- WEIR LN : Weir 1Q Orders Ex-FX up 15% Y/Y, 1% Q/Q