A global stocks selloff deepened on Monday as concerns grew that the Federal Reserve is behind the curve with policy support for a slowing US economy, sending investors into the safety of bonds. Japanese shares plunged as traders priced in more domestic rate hikes. The Topix and Nikkei indexes were on the verge of a bear market, with the former set for three-day declines that would be the worst since the 2011 Fukushima nuclear meltdown. The yen rallied over 1.5% against the dollar on bets the Bank of Japan will keep raising interest rates. Shares in Korea, Taiwan and Australian slid, prompting a gauge of regional shares to slump the most in four years. Concerns about the US economy sent Treasury yields lower, while spreads on investment—grade dollar bonds in Asia were set to widen the most in 22 months. Futures contracts on US equities also declined during Asian trading. The price action underscores how quickly sentiment has shifted away from expectations the Fed will be able to engineer a soft landing for the US economy. Data on Friday showed that US nonfarm payrolls recorded one of the weakest prints since the pandemic, and the jobless rate unexpectedly climbed to above the Fed’s year-end forecast, triggering a closely watched recession indicator. Bond traders have repeatedly misjudged where interest rates have been headed since the end of the pandemic, at times overshooting in both directions. Global bonds erased their losses for the year, as signs of US economic deterioration fueled demand for fixed-income. Japan’s benchmark 10-year bond yield fell to its lowest since April, slipping as much as 17 basis points to 0.785% on Monday. Mitsubishi UFJ Financial Group Inc.’s shares posted their biggest intraday drop on record as the fall in bond yields threatened to eat into loan margins. Asian currencies pushed higher - led by Malaysia’s ringgit - while the Mexican peso’s slump extended as traders continued to unwind emerging market carry trades. The sudden appreciation in funding currencies, such as the yen and China’s yuan, have damaged the carry trade, which typically involves traders borrowing at lower rates to invest in higher-yielding assets. In commodities, oil rose Monday amid reports Iran may strike Israel to avenge assassinations of Hezbollah and Hamas officials. Elsewhere, Bitcoin sank more than 10% at one point before paring some of the decline. Gold edged higher.
Nikkei -12.70% Hang Seng -2.20% CSI -0.68% Shanghai -0.89% Shenzen -1.24%
Eur$ 1.0932 CNH 7.1258 CNY 7.1343 JPY 143.13 GBP 1.2798 CHF 0.8507 RUB 85.3387 TRY 33.2185 WTI$ 73.30 Gold 2,446 BTC 53,600 -10% ETH 2,350 -14.50%
S&P -2.65% Nasdaq -5% EuroStoxx -2.55% FTSE -1.30% Dax -2.30% SMI -2%
Macro :
- Buffett’s BofA Sale a Warning of Recession as Bonds Align
- Goldman Says Short Euro Vs Dollar on US Election, Targets 1.0750
- Iran says Haniyeh assassinated by projectile, denies bomb explosion
- EU States Set to Back Chinese EV Tariffs, Dombrovskis Says: FT
- *BITCOIN SLIDES 10% IN A BROAD CRYPTO MARKET SELLOFF
- Buffett’s BofA Sale a Warning of Recession as Bonds Align (2)
Keep an eye on :
Keep an eye on :
- 1U1 GY : 1&1 Cuts FY Ebitda Forecast
- A4Y GY : Accentro Creditors Agree on Interim Funding for Interest Payment
- A4Y GY : Accentro Creditors Agree on Interim Funding for Interest Payment
- AAPL US : Apple Intelligence Has Long Way to Go to Match Hype: Power On
- AAPL US : Apple Investors Urged to Stay Calm After Buffett Slashes Stake
- ASMI NA : ASMI Slower Migration Risk After Blackwell Woes at Nvidia: React
- NDA GY : Aurubis 3Q Pretax Operating Profit Misses Estimates
- CS FP : Axa Says Proposed €5B BNP Deal May Help Fund Future Deals: FT
- CO FP : Casino to sell block of Pão de Açúcar shares on the market
- BDT GY : Bertrandt 3Q Ebit Loss EU7M
- IAG LN : BA parent intensifies Air Portugal pursuit after EU blocks Spanish deal
- CG US : Carlyle to Sell Cogentrix Energy to Quantum Capital for $3b: FT
- GALD SW : L’Oreal to Buy 10% Stake in Galderma; No Terms
- IFX GY : Infineon 3Q Revenue Misses Estimates
- K US : Mars in Advanced Talks to Buy Cheez-It Maker Kellanova -- WSJ
- LOGN SW : Logitech Co-Founder Says Guy Gecht Would Accept AGM Chair Vote
- OR FP :L’Oreal to Buy 10% Stake in Galderma; No Terms (1)
- META US : Meta Is Offering Hollywood Stars Millions for AI Voice Projects
- NAE LN : Neuberger Berman in Talks to Buy Nord Anglia Stake, WSJ Saysblp
- NTG DC : NTG Buys German Logistics Provider SSH for €39.1 Million
- PARA US : Byron Allen Prepares Topping Bid for Paramount: Semafor
- PETR4 BZ : Petrobras, Partner to Bid for 40% in Mopane Oil Field: Reuters
- PNL NA : PostNL 2Q Normalized Ebit Beats Estimates
- REN PL : REN Gets Portuguese Govt Approval for Transmission Projects
- SAY SM : Masdar Is Frontrunner to Buy Saeta Yield: El Confidencialblp again
- GLE FP : SocGen to Sell Private Banking Units in UK, Switzerland
- GLE FP : SocGen to Sell Madagascar Unit to BRED; No Terms
- TEF SM : Telefonica, Masorange to Create Spain FiberCo: Cinco Dias
- TTE FP : Business Day.za: TotalEnergies’ gas projects exit a ‘disaster’, says HCI CEO John Copelyn
- UTDI GY : United Internet Cuts FY Sales Forecast
- WSU GY : Washtec 2Q Ebit EU11.5M