Stocks fell Thursday after the Federal Reserve outlined plans to pare its balance sheet by more than $1 trillion a year while hiking interest rates, a campaign to curb inflation that could hit economic growth. An Asia-Pacific share gauge fell over 1%, sapped by Japan. Losses were a little smaller in China, where officials have again signaled that they intend to loosen policy amid a Covid outbreak and property-market woes. U.S. and European futures dipped after a tech-led Wall Street retreat Wednesday. Treasuries rose, the yield curve was steeper and the dollar flirted with a three-week high as investors digested the minutes of the Fed’s March meeting. The minutes signaled half-point rate increases are possible, and that the Fed is considering reducing its massive bond holdings at a maximum pace of $95 billion a month to tighten financial conditions. Commodity markets continue to be whipsawed by disruptions sparked by Russia’s war in Ukraine and efforts to curb raw-material costs. Oil rallied, paring a slump that was triggered by the International Energy Agency’s decision to deploy 60 million barrels from emergency stockpiles. The Fed’s plan to prune its near $9 trillion balance sheet, which was swollen by pandemic-era bond purchases, points to more volatility in global markets. Investors are doubtful the Fed can avoid tipping the world’s biggest economy into a recession as it focuses on slowing activity to bring down price pressures. In China, officials will use monetary policy tools at an “appropriate time” and consider other measures to boost consumption, according to the readout from a meeting of the State Council chaired by Premier Li Keqiang on Wednesday. Russia slipped closer to a technical default after foreign banks declined to process about $650 million of dollar payments on its bonds, forcing it to offer rubles instead. The latest corporate developments included the purchase of a stake in HP Inc. valued at more than $4.2 billion by Warren Buffett’s Berkshire Hathaway Inc. HP’s shares jumped in extended trading. US After Hours SOFI -5.3% falls on weak guidance; VAPO -18.8% as it withdraws FY22 rev guidance; LEVI +1% ticks higher on earnings
Nikkei -1.60% Hang Seng -1.13% CSI -1.06% Shanghai -1.18% Shenzen -1.55%
Eur$ 1.0917 CNH 6.3674 CNY 6.3622 JPY 123.68 GBP 1.3083 CHF 0.9326 RUB 81.8411 TRY 14.7424 WTI$ 97.23+ +1.06% Gold 1,923.03 -0.12% BTC 43,270 -1.37% ETH 3,200 -1.91%
S&P -0.30% Nasdaq -0.22% EuroStoxx -0.16% FTSE +0.06% Dax -0.18% SMI +0.08%
Macro :
- ECB’s Knot Expects Higher Inflation in Coming Months
- Fed Officials Weigh Pruning Balance Sheet by $95 Billion a Month
- Oil Selloff Accelerates as IEA Sets Coordinated Global Release
Keep an eye on :
- 888 LN : 888 to Launch Equity-Raise to Fund William Hill Takeover: Sky
- ARL GY : Advent, Centerbridge to Submit Renewed Aareal Takeover Bid
- ACCEL NA : Accell Says Acceptance Period in KKR Deal Runs April 8 to June 3
- ACS SM : ACS Confirms Interest to Bid For Atlantia With GIP, Brookfield
- ACS SM : ACS Looks to Elevate Highways Ambition With Atlantia Bid: React
- AIR FP : Airbus Is Said to Have Delivered About 60 Aircraft in March
- ALV GY : BNP, SocGen Interested in Allianz’s Generation Vie Stake: Echos
- ARR NO : Arribatec Group Offering of 100m Shares Prices at NOK0.5/Share
- ATL IM : Blackstone Is Said to Weigh Potential Bid for Italy’s Atlantia
- ATL IM : Atlantia Shares Jump in Milan After Report Perez Weighing Offer
- ATL IM : Atlantia Outlook to Stable by Moody's
- AVTX NA : Avantium Starts Offering Worth up to EU45m, Terms Show
- BARC LN : Barclays Hires BofA Equity Capital Markets Veteran Warren Fixmer
- BBVA SM : BBVA Plans Early Redemption of Contingent Conv. Securities
- BA US : Boeing 737 Max 10 Faces Costly Delays as Lawmaker Opposes Waiver
- CA FP : Carrefour Seen as Europe’s Top M&A Target in Bloomberg Survey
- CLASB SS : Clas Ohlson March Sales +22% (1)
- CNP FP : CNP Assurances Names Barriere, Thepaut to Executive Committee
- DBK GY : Deutsche Bank Plans to Hire 3,700 in India to Entrench Position
- H20 GY : Enapter AG Plans EU100m Capital Raise in Two-Part Share Issue
- EUZ GY : Eckert & Ziegler Prelim 1Q Net Income About EU6.5M
- SGRE SM : Gamesa Sinks on Turbine Issue; Citi Says Drop May Be Overdone
- G IM : Generali Div. at Risk in Challengers’ Plan, CEO Tells Repubblica
- GXI GY : Gerresheimer 1Q Adjusted Ebitda EU61.5M Vs. EU54.2M Y/y
- HPQ US : Buffett’s Berkshire Hathaway Adds New $4.2 Billion HP Stake
- REMEDY FH : Finland’s Remedy to Remake Max Payne Titles With Rockstar Games
- REP SM : Repsol 1Q Refining Margin Widens, Crude Output Drops
- MSLH LN : Marshalls to Buy Marley For GBP535m Ent. Value; Starts Placing
- SAN FP : Sanofi, Regeneron: EU Commission Approves Dupixent for Children
- SBMO NA : SBM Offshore Has No Significant Business in Ukraine or Russia
- SCTS SS : Scandi Standard Says Fire Broke Out at Danish Facility
- SKAB SS : Skanska Receives Order for Route 146 in U.S. Worth SEK780m
- SOP FP : Sopra Steria Indexes EU1.1B Credit Line to Carbon Target
- SREN SW : Swiss Re Reiterates Target ROE of 14% in 2024
- DG FP : Vinci Highways Acquires 70% of Tollplus It Didn’t Already Own
- WMH LN : 888 to Launch Equity-Raise to Fund William Hill Takeover: Sky