(Bloomberg) – U.S. and European stock futures fell along with Asian stocks on Tuesday as investors weighed the prospect of central banks tightening policy more than previously expected to tame inflation.
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Futures on the S&P 500 and Nasdaq 100 lost more than 0.3%, indicating continued bearish pressure on US stocks after last week’s plunge. The MSCI Asia Pacific Index slid as much as 0.5% in mixed trade as it saw Japanese shares swing between gains and losses while Chinese stocks plummeted.
The drop in Chinese shares came after the benchmark CSI 300 index posted its best one-day gain since November on Monday, when Goldman Sachs Group Inc. strategists. said the country’s shares could rise about a fifth from current levels this year.
The dollar edged higher, rising against Group 10 currencies, as Treasury yields rose in Asia after the US holiday close on Monday.
Policy-sensitive two-year yields are near their highest since November as traders await the release of the PCE deflationator, the Federal Reserve’s preferred inflation gauge, at the end of the month. this week.
Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.
The benchmark two-year yield on New Zealand government bonds rose on Tuesday while Australian yields edged higher. Economists expect the Reserve Bank of New Zealand to raise its policy rate by 50 basis points on Wednesday.
Meanwhile, economic data released so far “certainly pours cold water” on the argument that the Federal Reserve may pause or even cut interest rates soon, said Chuck Cumello, president. and chief executive officer of Essex Financial Services, said on Bloomberg. Radio. “We are on a more volatile ride and I think the market is finally waking up to interest rates staying higher for longer,” he said.
Elsewhere, oil trading turned rough as investors weighed the possibility of further monetary tightening against signs of improving demand from China. Gold was little changed.
This week’s main events:
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Expected weekly earnings include: Alibaba, Anglo American, AXA, BAE Systems, Baidu, BASF, Danone, Deutsche Telekom, Holcim, Home Depot, Hong Kong Exchanges & Clearing, HSBC, Iberdrola, Lloyds Banking Group, Moderna , Munich Re, Newmont, Nvidia, Rio Tinto, Walmart, Warner Bros Discovery
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PMI for Japan, Eurozone, UK, US, Tuesday
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US Existing Home Sales, Tuesday
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US MBA Mortgage Application, Wednesday
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Minutes of the Federal Reserve from January 31 to February 31. 1 policy meeting, Wednesday
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Eurozone CPI, Thursday
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US GDP, Initial Jobless Claims, Thursday
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Atlanta Fed President Raphael Bostic Speaks Thursday
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G-20 finance ministers and central bank governors meet in India, Thursday-Friday
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Japan CPI, Friday
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BOJ gubernatorial candidate Kazuo Ueda appears before the Japanese lower house, Friday
Some key moves in the market:
share
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S&P 500 futures were down 0.4% at 12:32 p.m. Tokyo time.
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Nasdaq 100 futures fell 0.3%.
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Japan’s Topix index little changed
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Korea’s Kospi index little changed
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Hong Kong’s Hang Seng Index drops 1.1%
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China’s Shanghai Composite Index was little changed
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Australia’s S&P/ASX 200 Index drops 0.2%
currency
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The Bloomberg Dollar Spot Index is up 0.1%.
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The euro fell 0.2% to $1.0665
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Japanese yen fell 0.1% to 134.43 to the dollar
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Offshore yuan fell 0.2% to 6.8759 per dollar
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Australian dollar fell 0.1% to $0.6899
electronic money
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Bitcoin up 0.8% to $24,975.93
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Ether rose 0.4% to $1,707.7
bonds
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Yields on 10-year Treasuries rose 4 basis points to 3.85%
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Japan’s 10-year yield unchanged at 0.50%
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Australian 10-year bond yield rose two basis points to 3.83%
Goods
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West Texas Intermediate crude rose 0.4% to $76.61 a barrel
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Spot gold fell 0.1% to $1,838.93 an ounce
This story was made possible with support from Bloomberg Automation.
–With support from Akshay Chinchalkar and Richard Henderson.
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