Stocks slid with bonds Friday and the dollar rose as inflation, rising borrowing costs and China’s Covid lockdowns depressed sentiment. An Asia-Pacific share index shed over 1.5%, sapped by the technology sector amid drops in Hong Kong and China. The overall regional loss was smaller than Thursday’s slide of more than 3.5% in the S&P 500 index and 5% in the Nasdaq 100 gauge. U.S. and European futuresdipped. Australian debt and Treasuries extended a tumble that’s lifted the U.S. 10-year yield past 3%. A dollar gauge neared a two-year high and the yuan retreated.
Risk aversion has swept away a relief rally in the wake of the Federal Reserve decision Wednesday. The U.S. central bank raised interest rates by the most since 2000 while pushing back against talk of super-sized increases.
That led to temporary respite in markets as traders pared the most aggressive rate-hike bets but sentiment quickly skidded again on the cold reality of tightening financial conditions. The war in Ukraine and China’s Covid outbreak are also stirring angst and stoking concerns about the risk of a recession. Elevated commodity prices are feeding into rising costs. West Texas Intermediate crude has topped $108 a barrel on supply concerns stemming from a European Union proposal to sanction Russian oil. Meanwhile, China reaffirmed its preference for a strategy of lockdowns to eliminate Covid despite the economic cost. Top leaders warned against questioning President Xi Jinping’s so-called Covid Zero strategy. Separately, the nation ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within two years. Later Friday, the U.S. jobs report may show that rising wage costs are adding to the inflationary pressures that have been undermining market sentiment. US After Hours OPEN +13.3%, SQ +8.5%, DASH +7.6%, MELI +6.5% higher on earnings; FTDR -26.4%, CGNX -9.8%, ZG -9.4%, DLB -6.3% lower on earnings; FNKO +28% jumps on investment
Nikkei +0.53% HAng Seng -3.55% CSI -2.14% Shanghai -1.86% Shenzen -1.32%
Eur$ 1.0519 CNH 6.7126 CNY 6.6805 JPY 130.64 GBP 1.2353 CHF 0.9872 RUB 65.2146 TRY 14.8810 WTI$ 108.69 +0.40% Gold 1,877 -0.05% BTC 36,470 ETH 2,750 -0.22%
S&P +0.07% NAsdaq +0.15% EuroStoxx +0.05% FTSE -0.20% Dax +0.11% SMI +0.08%
Macro :
- ECB to Discuss Rate Hike in June, Probably Act, Holzmann Says
Keep an eye on :
- ARL GY : Aareal Boards Recommend Accepting Advent/Centerbridge Offer
- AC FP : Marriott Vacations Boosts FY Adjusted EPS Forecast
- ADS GY : Adidas and Foot Locker Announce New Long-Term Partnership
- ADS GY : Adidas Cuts FY Margin View on Lower-Than-Expected China Sales
- APAM NA : Aperam 1Q Adjusted Ebitda Meets Estimates
- IAG LN : *IAG 1Q ADJ. OPER LOSS EU754M, EST. LOSS EU521.2M
- CS FP : Axa 1Q Revenue Meets Estimates
- BAMI IM : Banco BPM to Securitize ~EU700m of Unlikely to Pay, Bad Loans
- BMPS IM : Paschi Swings to Quarterly Profit Ahead of Planned Capital Hike
- BPOST BB : Bpost 1Q Adjusted Ebitda Beats Estimates
- CTY1S FH : Citycon Narrows FY EPRA EPS Forecast
- CTT PL : CTT 1Q Net Income EU5.4M Vs. EU8.7M Y/y
- BN FP : Lactalis Could Look at Some Danone Brands: Les Echos
- DPW GY : U.S. Postal Service Posts 2Q Adjusted Loss About $1.7 Billion
- EDP PL : EDP 1Q Net Loss EU76M, Est. Loss EU43.4M (2 Est.)
- ECMPA NA : Eurocommercial 1Q Net Property Income EU40.1M Vs. EU36.0M Y/y
- FER SM : Ferrovial 1Q Ebitda Misses Estimates
- FCT IM : Fincantieri 1Q Ebitda EU118M Vs. EU101M Y/y
- FLYR NO : Flyr Offering of 208.3m Shares Prices at NOK1.2/Share
- GLPG NA : Galapagos 1Q Revenue Beats Estimates
- G1A GY : GEA Group 1Q Adjusted Ebitda Beats Estimates
- INGA NA : ING 1Q Net Income Misses Estimates, EU834m Russia Risk Costs (1)
- INW IT : INWIT 1Q Revenue Meets Estimates
- DEC FP : JCDecaux Sees 2Q Organic Adjusted Revenue Above +15%
- JUN3 GY : Jungheinrich 1Q Ebit EU77.9M Vs. EU72.1M Y/y
- KBC BB : KBC Names Frank Jansen as CEO of Irish Unit
- KRN GY : Krones 1Q Ebitda Beats Estimates
- LDO IM : Oto Melara Sale Is Not Frozen, Leonardo CEO Says
- MB IM : Caltagirone Raised Stake in Mediobanca to 5.499%: Filing
- NOVN SW : Novartis Suspends Radioligand Therapy Production in Italy, U.S.
- RHM GY : Rheinmetall 1Q Operating Profit Beats Estimates
- RTL LX : RTL 1Q Revenue EU1.56B Vs. EU1.40B Y/y
- RUI FP : Rubis 1Q Revenue Beats Estimates
- SFQ GY : SAF-Holland SE Boosts FY Sales Forecast
- SCATC NO : Scatec 1Q Ebitda Misses Estimates
- SCR FP : Scor 1Q Net Loss EU80M Vs. Profit EU45M Y/y
- STR AV : Strabag Appoints Klemens Haselsteiner as New CEO
- TRUEB SS : Truecaller 1Q Ebit SEK175.5M Vs. SEK40M Y/y
- WDP BB : WDP to Buy Shares of WVI Joint Venture From VIB Vermogen