Shares of Asia and US equity futures fell on Tuesday as investors assessed whether the fresh Chinese stimulus could help offset the impact of the lockdown on the economy and sell off Internet shares.
As the government is unlikely to cancel the Hotel Quarantine before July, MSCI Inc., an Asian stock exchange, retreated to Hong Kong. The gauge slips. Chinese stocks have fallen as investment banks cut their growth forecasts.
The Nasdaq 100 futures performed lower after Snapchat owner Snap Inc. warned of a downturn in macroeconomic trends, saying it was unlikely to meet revenue and profit forecasts for the second quarter, punishing social media stocks in after-hours trading. The dollar rose, the Treasury was stable.
Traders have blocked China’s latest move to boost flagship growth. UBS Group AG and JPMorgan Chase & Co. This year has lowered their forecast for the country’s economic growth.
Equities have been volatile as investors assess the outlook for monetary policy, inflation and the impact of China’s austerity policy on the global economy. This week’s minutes of the most recent Federal Reserve rate-setting meeting will provide market insights into the US Federal Reserve’s tightening this week.
Margaret Patel, senior portfolio manager at Allspring Global Investments on Bloomberg Television, said: “It’s a big risk that the Fed is not getting the signal for a big economy and is moving forward with a very aggressive austerity program.” “But if they look at the real world there, they will see that it is time to take a big break and at that point we will evaluate the market and probably try to find a way out without a recession.”
European Central Bank President Christine Lagarde’s possible two-quarter-point interest rate hike has annoyed colleagues who want to keep the option of moving fast open.
Ether George, president of the Kansas City Fed, said he expects the central bank to raise interest rates to 2% by August, and the path to further tightening will be guided by how to calm rising inflation.
Here are some important events to watch this week:
- Eurozone S&P Global PMIs Tuesday
- US New Home Sales, S&P Global PMIs Tuesday
- The Reserve Bank of New Zealand decided the rate on Wednesday
- FOMC minutes Wednesday
- The ECB released its financial stability review on Wednesday
- Bank of Korea rate decision on Thursday
- US GDP, primary unemployment claims Thursday
- US original PCE price index; Personal income and expenses; Wholesale inventory; University of Michigan Consumer Feelings Friday
Some of the major rice in the market:
- The S&P 500 futures fell 0.9% in Tokyo at 2:10 p.m. The S&P 500 rose 1.9% on Monday
- Nasdaq 100 futures down 1.6%. The Nasdaq 100 rose 1.7% on Monday
- The Topix index fell 0.7%
- Australia’s S&P / ASX 200 index has changed slightly
- The Kospi index fell 1.1%
- Hang Seng index down 1.6%
- The Shanghai Composite Index fell 1.3%
- Euro Stocks 50 futures fell 0.5%
- The Bloomberg Dollar Spot Index rose 0.1%
- The Japanese yen was up 127.60 per dollar, up 0.2%
- Offshore yuan was 6.6739 per dollar, down 0.2%
- The euro was down $ 1.0665, down 0.2%
- Yield to 10 year Treasury was 2.84%
- Australian 10-year bond yield was 3.34%
- West Texas Intermediate crude fell 0.6% to $ 109.65 a barrel
- The price of gold was 185 1855.83 per ounce
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