Equities slid while government bonds yields climbed in much of Asia and Treasuries held their sharp move from the previous session as investors reassessed the risks from inflation. The unexpected decision by the Bank of Canada to restart its rate-hiking campaign on Wednesday — which followed an increase earlier in the week in Australia — continued to reverberate across global markets Thursday. Traders have boosted wagers on Federal Reserve rate increases, with swaps close to pricing in a quarter-point hike for the July meeting. Benchmark 10-year yields rose around 15 basis points in Australia and while Japanese yields of the same maturity edged about two basis points higher. The yield on Australia’s three-year note touched the highest level since 2012. Yields rose in India, even after the central bank kept rates unchanged. The governor mentioned the hikes in Australia and Canada — a possible hint at future increases amid the uncertain inflation outlook. Yields also climbed in Indonesia, the Philippines and Malaysia. The moves in Japan, meanwhile, were heavily influenced by GDP data that was much stronger than estimated, with the economy expanding 2.7% in the first quarter versus projections for 1.9% growth. The news also saw the yen strengthen.
Treasury yields stabilized in Asian trading after a sharp increase across the curve Wednesday that added 14 basis points to the 10-year benchmark. A gauge of Asian equities fell, with the most notable weakness in Hong Kong-listed technology stocks. Benchmarks in Australia, South Korea and Japan also declined slightly.
Indian shares opened moderately higher, putting the Sensex benchmark on course for a fresh record high after a recent rally. US futures edged lower after a decline on Wall Street on Wednesday. The S&P 500 fell for a second day this week and the Nasdaq 100 suffered its worst day since April as tech shares bore the brunt of jitters over higher rates. European futures were also lower. Bridgewater Associates’ billionaire founder Ray Dalio said while interest rates won’t go much higher, the economy will get worse.
“We are at the beginning of a late, big-cycle debt crisis when you are producing too much debt and have a shortage of buyers,” Dalio said from the Bloomberg Invest conference in New York..Gold advanced, while oil slid after a rally Wednesday and Bitcoin was little changed, hovering around $26,400. US After Hours HCP -22.5%, GME -18.9%, SMAR -15.8%, OXM -10% lower on earnings; SMTC +14%, GEF +5.3% higher on earnings; EXPI +6.5% and PRVA +5.8% get a boost on joining S&P Small Cap 600.
Nikkei -1,23% Hang Seng -0,33% CSI +0,10% Shanghai -0,08% Shenzen -0,41%
Eur$ 1,0716 CNH 7,1458 CNY 7,1360 JPY 139,80 GBP 1,2458 CHF 0,9089 RUB 81,55 TRY 23,3244 WTI$ 72,43 Gold 1,947 +0,25% BTC 26,418 +2% ETH 1,838,50 -0,16%
S&P -0,16% Nasdaq -0,38% Eurostoxx -0,30% FTSE -0,08% Dax -0,30% SMI -0,28%
Macro :
- BofA’s CEO Says Higher Capital Requirements Will Impact Lending
- Ray Dalio Says US at Beginning of ‘Late, Big-Cycle Debt Crisis’
- BT Pension Scheme to Invest in Private Credit Sector: FT
- *SPANISH TAX AGENCY SLAPS €90M FINE ON CVC: EL CONFIDENCIAL
Keep an eye on :
- ATEB BB : No Changes in Belgium’s BEL 20 Composition at Quarterly Review
- CAP FP : EU IT-Spending Crunch Could Hurt Small Companies More Than Big
- CLASB BB : Clas Ohlson 4Q Sales Matches Estimates
- DTE GY : Telcos' AI Gains May Be Ephemeral and Risks Can't Be Overlooked
- EDF FP : EDF Moves Back Into State Ownership With a Multitude of Burdens
- ENGI FP : Engie Brasil Inks Deal to Sell BRL1b Stake in Unit to Itau
- ERA FP : Rio Tinto, Tianqi Have Held Lithium Talks With Chile’s Enami
- INVP LN : Investec Takes Majority Stake in M&A Boutique Capitalmind
- BIIB US : Eisai Alzheimer’s Drug Leqembi Moves Closer to Full US Approval
- MBLY US : Mobileye Offering by Holder Intel Prices at $42/Share
- NOVN SW : Novartis’s Sandoz Sees Pipeline Adding $3 Billion Sales by 2028
- ORA FP : Telcos' AI Gains May Be Ephemeral and Risks Can't Be Overlooked
- ORSTED DC : Orsted Aims to Spend DKK475 Billion for 50GW Installed Capacity
- PSH NA : Pershing Square Holdings Reports $100m Share Buyback Program
- SEBA SS : SEB Raises €300 Million for ESG Fund Under Strictest EU Rules
- GLE FP : SocGen Seeks Buyer of Controlling Stake in Tunisia’s UIB
- SOI FP : SOITEC FY Current Operating Income EU267M Vs. EU195M Y/y
- TIT IM : Sparkle Signs MoU With Libya’s LPTIC on Bluemed Submarine Cable
- UCG IM : UniCredit May Be Interested in OTP Bank’s Romania Arm: MF
- DG FP : Vinci to Offer 20% Toll Rebate For Some Summer Travel (June 7)
- WIZZ LN :