(Bloomberg) — US equity-index futures fell with Treasuries after a chorus of Federal Reserve officials reiterated their resolve to continue rate hikes and traders raised tightening wagers for other major central banks.
Najčitanije s Bloomberga
September contracts on the S&P 500 Index fell 0.7% after Thursday’s gains put the equity benchmark on course for the longest streak of weekly gains since November. Technology shares remained the weaker link, with Nasdaq 100 futures falling 1% Friday. The two-year Treasury yield advanced 5 basis points. The dollar headed for the biggest weekly rally since June 10. Bed Bath & Beyond sank 42% in New York premarket trading after a major investor sold his stake.
Two voting members of the Federal Open Market Committee — St. Louis’s James Bullard and Kansas City’s Esther George — emphasized that the US central bank will continue to raise interest rates until inflation eased back to its 2% target. While their views released Thursday diverged on the quantum of the Fed’s September move, they quelled expectations that a string of weak economic data will encourage the Fed into a dovish pivot.
“It is patently clear that the Fed has inflation reduction as its main aim, even though it acknowledges the knock-on risk of derailing the economy,” Richard Hunter, the head of markets at Interactive Investor International in Leeds, UK, said. “Comments from several Fed officials suggest that there remains some way to go before victory can be declared on taming inflation.”
Non-voting officials also reiterated the Fed’s hawkish stance. San Francisco’s Mary Daly said officials would be in no hurry to reverse course next year, pushing back against bets for rate cuts before the end of 2023. Minneapolis’s Neel Kashkari said that “we have an inflation problem right now,” and that the central bank has to get it down “urgently.”
Treasuries fell across the curve on Friday. Money markets raised central-bank tightening wagers, with 40% odds of a 75-basis-point Fed hike in September and a 33% probability of a similar increase by the Bank of England, while a half-point hike by the European Central Bank is baked in.
Investors are now focusing on the Fed’s annual symposium at Jackson Hole, Wyoming, next week for further clues on the policy path. Recent data suggesting a slowdown in activity have underscored the growing impact of rate hikes on the world’s largest economy. Economists see a 50% chance of recession in the US, and a 55% probability in the eurozone. Worsening the sentiment is the Fed’s quantitative easing, set to accelerate to an annual pace of $1 trillion next month.
Europe’s Stoxx 600 fell on Friday, on course for a weekly decline. Real estate and travel & leisure stocks posted the worst performances. Asian shares retreated, led by Chinese mainland stocks.
Bed Bath & Beyond fell to $10.75 in early New York trading, compared with Thursday’s close of $18.55, after Ryan Cohen sold his entire stke in the retailer. Cryptocurrency-linked stocks tumbled, tracking losses in Bitcoin: Coinbase Global Inc., Marathon Digital Holdings and Riot Blockchain Inc. each dropped at least 5% each.
The Bloomberg Dollar Spot Index was set for a 1.8% increase this week, having advanced on five of the past six days. Geopolitical tensions bubbled back to the surface, adding to the haven bid for the greenback. Indonesian President Joko Widodo said China’s Xi Jinping and Russia’s Vladimir Putin plan to be at a Group of 20 summit in Bali later this year. That sets up a showdown with US President Joe Biden and others as Russia continues its war in Ukraine.
Oil and gold dropped. Later Friday, a $2 trillion options expiration could stir volatility in global markets.
Inflacija ostaje najgledaniji indikator u drugom poluvremenu. Hoće li se postepeno smanjivati ili će ostati na povišenom, prisiljavajući Fed da nastavi agresivno podizati stope? Recite svoje mišljenje u anonimnoj anketi MLIV Pulse.
Neki od glavnih poteza na tržištu:
Akcije
Stoxx Europe 600 pao je 0.5% u 9:26 ujutro po londonskom vremenu
Fjučersi na S&P 500 pali su 0.7%
Fjučersi na Nasdaq 100 pali su 1%
Fjučersi na Dow Jones industrijskom prosjeku pali su za 0.5%
MSCI azijsko -pacifički indeks pao je 0.6%
MSCI indeks tržišta u razvoju pao je 0.5%
valute
Bloomberg Dollar Spot Index porastao je 0.3%
Euro se malo promijenio na 1.0084 dolara
Japanski jen pao je 0.5% na 136.60 za dolar
Ofšor juan pao je 0.3% na 6.8230 za dolar
Britanska funta pala je 0.4% na 1.1886 dolara
obveznice
Prinos na desetogodišnje trezore porastao je za pet baznih poena na 10%
Germany’s 10-year yield advanced nine basis points to 1.19%
Britanski 10-godišnji prinos porastao je za 10 baznih poena na 2.41%
proizvodi
Nafta Brent pala je 1% na 95.66 dolara po barelu
Spot zlato palo je 0.3% na 1,753.92 USD za uncu
Najčitanije sa Bloomberg Businessweek -a
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Source: https://finance.yahoo.com/news/asia-stock-gauge-dips-dollar-010732895.html