(Bloomberg) – Stocks and currencies plunged on Tuesday as investors gauged the health of China’s economy and reassessed a fresh rally in equities.
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US stock futures fluctuated and European contracts fell after the Euro Stoxx 50 benchmark index across the region rose 1.7 per cent on Monday. Share markets across Asia rocked in a mixed trade of Hong Kong and mainland China stocks edging higher after early losses and falling Australian and South Korean markets.
The pressure on stocks comes after last year’s sharp volatility caused global stocks to lose 20% of their value, the worst drop since the financial crisis. Bonds lost 16% of their value, the biggest drop since at least 1990 for a leading measure, as central banks raised interest rates to lower inflation.
Marc Franklin, senior portfolio manager at Manulife Investment Management, said in an interview with Bloomberg Television.
The yen strengthened 0.8% against the greenback to pierce 130 yen to the dollar – the highest level since June. It has appreciated against all peers in Group 10, especially are the commodity currencies of Australia, New Zealand and Canada. The increase comes after the Bank of Japan’s persistent efforts to reduce government bond yields, with the yen strengthening suggesting traders believe the central bank will be forced to cut yields. ease policy settings.
Read more: As roads split in 2022, stocks, one trade that made all the difference
The dollar traded flat and cashless Treasuries trade in Asia as the Japanese market was closed on Tuesday. Gold rose about 1% above $1,840 an ounce for the first time since June.
Elsewhere in the market, oil prices fell while US natural gas prices fell as warmer weather is expected to reduce heating demand. China’s private purchasing managers index fell for the fifth consecutive month. Other data on the notebooks for Tuesday includes German jobless claims.
Read more: Treasury strategists expect lower yields, steeper curve in 2023
Bonds are about to return to the stage to hedge stock losses: MLIV Pulse
Some key moves in the market:
share
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S&P 500 futures were little changed at 12:22 p.m. Tokyo time
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Australia’s S&P/ASX 200 drops 1.5%
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Hong Kong’s Hang Seng up 1.1%
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Shanghai Composite up 0.3%
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Euro Stoxx 50 futures down 0.6%
currency
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Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0673
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Japanese yen rose 0.7% to 129.82 to the dollar
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Offshore yuan rose 0.6% to 6.8877 per dollar
electronic money
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Bitcoin drops 0.4% to $16,676.87
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Ether drops 0.4% to $1,214.13
bonds
Goods
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West Texas Intermediate crude fell 0.2% to $80.09 per barrel
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Spot gold rose 1% to $1,842.02 an ounce
This story was made possible with the help of Bloomberg Automation.
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