Stocks and bonds declined Wednesday on the prospect of a swift reduction in the Federal Reserve’s debt holdings as part of a stepped up campaign of monetary tightening to tackle high inflation. An Asia-Pacific share index fell about 1.5%, dragged down by Japan and Hong Kong as the latter reopened after a holiday. U.S and European futures slipped, following a drop in Wall Street shares led by the technology sector. Treasuries extended a slump, pushing the 10-year yield up to 2.60%, the highest level since 2019. Bonds in Australia and New Zealand also tumbled. A gauge of the dollar’s strength was near a three-week peak. Fed Governor Lael Brainard said Tuesday curbing inflation is “paramount,” adding the central bank may start trimming its balance sheet rapidly as soon as May. Investors fear that a more restrictive U.S. central bank could end up tipping the world’s largest economy into a downturn, or even a recession. Oil dipped below $102 a barrel. Worries remain that Russia’s growing isolation over the war in Ukraine may further disrupt commodity flows. Fresh sanctions on Russia are expected, including a U.S. ban on investment in the country and a European Union proscription on coal imports. Markets signal a half-point Fed rate increase is on the cards at next month’s policy meeting. At the same time, price pressures show little sign of abating as war stokes already elevated raw-material costs. Latest data from China indicated that activity in its services industry contracted in March amid mobility curbs to stem a Covid outbreak. US After Hours JBLU makes bid for SAVE, setting up possible bidding war with ULCC; GOGO +11% on news it will join S&P SmallCap 600; ARRY +14.7% up nicely on earnings, new CEO
Nikkei -1,39% Hang Seng -1,31% CSI -0,24% Shanghai -0,04% Shenzen -0,06%
Eur$ 1,0897 CNH 6,3786 CNY 6,3693 JPY 123,89 GBP 1,3070 CHF 0,9308 RUB 83,8514 TRY 14,7322 WTI$ 101,85 Gold 1,923,36 BTC 45,180 -1,5% ETH 3,339,41 -2,60%
S&P +0,09% Nasdaq +0,04% EuroStoxx -0,26%% FTSE +0,02% Dax -0,25% SMI +0,08%
Macro :
- Germany Grid Body Warns of ‘Terrible’ Choices in Gas Plan: HB
- Draghi Plans 10 Billion Euros of Fresh Debt as Cost of War Soars
- Deutsche Bank Predicts U.S. Recession in ‘23 as Fed Boosts Rates
- U.K. Covid Cases at Highest Level as Immunity Wanes, Study Finds
- Ex-Oligarch Says Putin Sees War With the West Already Underway
Keep an eye on :
- AIR FP : Unkown Airbus Holder Raises $393 Million From Stake Sale
- ALLFG NA : Allfunds to Buy Web Financial Group for EU145m
- CS FP : *AXA, OMERS CONSORTIUMS FINAL BIDDERS FOR LYNTIA NETWORKS: CONFI
- BP/ LN : BP to Issue 165m Shares in Connection With Midstream Merger
- CARLB DC : Carlsberg Talks With Possible Buyers of Russian Unit: Berlingske
- EDF FP : EDF Completes Capital Increase With French State Backing
- ECV GY : Encavis Buys 11.5 MW Danish Wind Farm
- ERICB SS : Handelsbanken Analysts Adjust View on CFIUS, Ericsson and Vonage
- FTCH US : Farfetch Alliance Gives Its Tech ‘Stamp of Legitimacy’: Analyst
- GSK LN : Vir Plunges After FDA Cancels U.S. Sotrovimab Authorization
- HYVE LN : Hyve Agrees to Sell Russia Operations for About GBP100M: Sky
- KEYW BB : Keyware Agrees to Settlement in Probe of Market Manipulation
- LAT FP : Confirms it continues to progress discussions with multiple potential targets in North America.
- FB US : Instagram Cuts Payments to Influencers for Short Videos: FT
- ORSTED DC : Russia to Cut Danish Gas If Orsted Doesn’t Pay in Ruble: Borsen
- SPM IM : Saipem Gets Over $400m in Middle East, West Africa Contracts
- SALME NO : Salmon Evolution Offering of 33.3m Shares Prices at NOK9/Share
- SUN SW : Sulzer 1Q Orders CHF858.5M Vs. CHF749.7M Y/y
- TKA GY : Thyssenkrupp Under Immense Pressure Because of Ukraine War: CEO
- VWS DC : Vestas Will Gradually Withdraw From Russia, Borsen Says
- VOW GY : VW to Scrap Dozens of Models, Focus on Premium Market: FT
- WBD IM : Webuild Says CDP, Intesa, UniCredit, BPM Have Acquired Stakes