US equity futures are down, and European stocks are less open, due to concerns that high inflation is undermining bargaining stocks, overshadowing corporate performance.
The S&P 500 futures slipped 0.4% on Wednesday after the equity benchmark posted its biggest one-day drop since June 2020. Nasdaq 100 contract down 0.5%. The Stoxx 600 lagged more than 1% as European technology shares joined global sales. After a two-day drop, the oil rose again. The dollar was stable, while treasuries gained little.
Betting on investor sentiment has been in doubt since this year’s volatile weather, after the US consumer Titans signaled the growing impact of high inflation on margins and consumer spending. Meanwhile, Federal Reserve officials have confirmed that tighter monetary policy is ahead and investors are worried about the risk of stagnation.
“We are pricing for fear of an increase,” Laurie Calvasina, head of US equity strategy at RBC Capital Markets, told Bloomberg TV. “There’s a lot of uncertainty in the market right now about whether that recession will come or whether it’s going to be another near-death experience.”
Stocks of retailers and consumer-oriented companies posted some of the biggest losses in Asia and Europe after U.S. investors questioned the high valuation of companies like Target Corporation against the backdrop of rising interest rates.
In China, Tencent Holdings Limited fell 6.6 percent after warning that it would take time for Beijing to work on its commitment to advancing China’s technology sector. Cisco Systems Inc. Extended US trading has slipped in a disappointing revenue outlook.
Some of the major rice in the market:
- Stoxx Europe 600 fell 1.2% at 8:14 a.m. London time
- The S&P 500 futures are down 0.4%
- Nasdaq 100 futures down 0.5%
- The Dow Jones Industrial Average futures are down 0.4%
- The MSCI Asia Pacific Index fell 1.9%
- The MSCI emerging market index fell 2.1%
- The Bloomberg Dollar Spot Index has changed slightly
- The euro has changed slightly to $ 1.0468
- The Japanese yen fell 0.1% to 128.37 against the dollar
- Offshore yuan has changed slightly to 6.7830 per dollar
- The British pound changed slightly to 1.2344
- Yields on the 10-year Treasury fell two basis points to 2.87%
- Germany’s 10-year yield fell four basis points to 0.99%
- Britain’s 10-year yield fell four basis points to 1.83%
- Brent crude rose 1.3% to $ 110.49 a barrel
- Spot gold fell 0.1% to 13 1813.89 an ounce
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