Blog post

Asian stocks appear stable after U.S. tech sell-off: markets close in

Content of the article

(Bloomberg) – Stocks in Asia are expected to open stably on Wednesday as investors worry about interest rate hikes that have caused US stocks to fall to a record low and prolong a decline in Treasuries.

Futures rose in Japan, changed little in Australia, and plunged in Hong Kong. The Nasdaq 100 underperformed amid a massive sell off of tech stocks. The S&P 500 has changed little.

The U.S. Treasuries rout worsened for a second day amid growing belief that the Federal Reserve will hike rates at least three times starting in May to counter price pressures. Yields on long maturities climbed amid a large supply of new corporate bonds after a year-end lull. The dollar was little changed, while the yen hit its lowest level since January 2017.

Advertising

Content of the article

Chinese stocks will be watched closely after having experienced their worst start to the year since 2019. An index of New York-listed companies with their business primarily in China fell the most in more than two weeks.

December payroll data in the US and minutes from the Fed’s meeting last month may shed more light this week on the potential pace of rate hikes. Minneapolis Fed Chairman Neel Kashkari has said he supports two rate hikes this year to counter the risks posed by inflation.

“Wall Street knows the first quarter of the year will be devoted to accelerating Fed rate hike expectations as investors assess the impact of high energy prices, surging Treasury yields and the endless attention to new variants of Covid, “Edward Moya, senior market analyst in Oanda, said in a note

Advertising

Content of the article

Tuesday’s data showed mixed signs on US inflation. Prices paid by manufacturers in December were significantly lower than expected. However, figures showing a record rate of job resignations in the United States added to concerns about wage inflation.

Crude oil in New York won. OPEC and its allies have agreed to revive more interrupted production as the outlook for global oil markets improves, with demand largely resisting the new variant of the coronavirus.

Elsewhere, Bitcoin has traded above $ 46,000. Goldman Sachs Group Inc. predicts that $ 100,000 is possible as the cryptocurrency continues to take market share from gold as a store of value.

What to watch this week:

FOMC meeting minutes due for release on Wednesday Fed Bullard discusses US economy and monetary policy at event Thursday Fed’s Daly discusses monetary policy at panel Friday ECB schnabel speaks on Saturday during a panel

Advertising

Content of the article

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

The S&P 500 was little changed The Nasdaq 100 fell 1.4% Nikkei 225 futures were up 0.2% Australia’s S & P / ASX 200 index futures fell 0 , 3%

Currencies

Japanese Yen fell 0.7% to 116.14 per dollar Offshore Yuan was 6.3750 per dollar Bloomberg Dollar Spot Index was little changed Euro was at $ 1.1282

Obligations

The yield on 10-year treasury bills rose two basis points to 1.65%

Merchandise

West Texas Intermediate crude rose 1.4% to $ 77.12 per barrel Gold rose 0.7% to $ 1,814.30 per ounce

© 2022 Bloomberg LP

Bloomberg.com

Advertising

comments

Postmedia is committed to maintaining a vibrant but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Check out our community guidelines for more information and details on how to adjust your email settings.