Global Markets Track US Selloff; S&P Futures Edge Lower

The international market fell sharply, after Thursday’s slide on Wall Streetbut US stock futures were only modestly lower, suggesting some pressure on US stocks could ease on Friday.

Late Friday morning in Hong Kong, E-mini futures tied to the S&P 500 and the tech-focused Nasdaq-100 index were both down about 0.2%.

Benchmark indexes in mainland China, Hong Kong, Australia and South Korea all fell, with Australia’s S&P/ASX 200 down more than 2%. Hong Kong’s Hang Seng Index fell 3.2%, while a sister index that tracks technology shares fell more than 4%. In mainland China, the CSI 300 fell 1.9%.

US stocks rallied on Wednesday after Federal Reserve raised interest rates half a percentage pointfueled by relief that they weren’t actively looking at further big moves in the future, but that optimism faded on Thursday as investors reassessed the outlook for the stock.

Frank Benzimra, head of Asia equity strategy at Société Générale, said valuations of US markets have “moved from rich to very rich” over the past 10 years. But as interest rates rise, the value that investors place on companies’ future cash flows is decreasing, he said.

In addition, Mr. Benzimra said, some big tech companies depend on consumer discretionary spending and on advertising – making them vulnerable to the cyclical shift in the consumer economy. .

Japanese stocks bucked a broader downtrend as Tokyo markets reopened after a three-day public holiday. The Nikkei 225 index rose about 0.3%.

Elsewhere, the yield on the standard 10-year U.S. Treasury note was slightly lower at 3.063 percent, according to Tradeweb. On Thursday, it was steady at 3,066%, the highest since November 2018. Bond yields rose as prices fell.

According to FactSet, the most actively traded contracts for Brent crude, the global oil benchmark, rose 0.6 percent to $111.57 a barrel, extending its run since Thursday.

Bitcoin rallied to around $36,468 by mid-morning, up slightly from $36,432 at 5 p.m. ET on Thursday, according to CoinDesk.

Write letter for Rebecca Feng at [email protected]

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