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Higher yields weigh on equities Overnight, US markets took fright as US long-dated yields shot higher as inflation nerves grew on Wall Street. The S&P 500 fell 1.68%, the Nasdaq slumped by 2.18%, and the Dow Jones retreated by 1.17%.

12-04-2022 05:09 GMT by Jeffrey Halley

Equities yield to bonds

US yields hit 3-year high Markets got a case of inflation nerves overnight, with long-dated US yields shooting higher ahead of US inflation data this evening. The US 2-year 10-year curve now has nearly 30 points of positive daylight in it, thankfully removing the “inverse yield curve, we’re all doomed” headlines off the front page for now.

12-04-2022 04:51 GMT by Jeffrey Halley

Market Insights Podcasr (Episode 318)

Jonny Hart speaks to APAC Senior Market Analyst Jeffrey Halley about news impacting the market and the week ahead. In this episode, we start off with China equities which have staged a very suspicious 3.0% reversal higher late in the session, as well as glancing at the overnight price action in New York and Asia today. We then turn our attention to a packed data calendar that includes US Inflation this evening and the ECB policy decision on Thursday, as well as German and UK data just releas

12-04-2022 04:10 GMT by Jeffrey Halley

Oil slumps as China struggles with COVID, gold remains volatile

Oil falls on China's Covid outbreak Oil prices headed lower as energy traders continue to price in further crude demand destruction as China's covid outbreak worsens. WTI crude knew it was in trouble given the deteriorating crude demand outlook, a stronger dollar, and after a senior US administration official said that President Biden did not make a “concrete ask” to India to ease up their energy purchases from Russia. The oil market is getting beat up and it might take exhaustion from the stro

11-04-2022 15:08 GMT by Edward Moya

Inflation wall of worry send stocks lower, bitcoin selloff continues

Fed, China weigh on equity markets US stocks declined as the bond market selloff continued as investors fret over aggressive monetary tightening by the Fed and as China continues to struggle with their latest Covid outbreak. Wall Street is worried that inflation will eventually destroy all the growth potential that was supposed to happen this year.

11-04-2022 14:59 GMT by Edward Moya

Oil falls below 100, gold pares gains

Oil slides amid Chinese restrictions Oil is off around 3% on the day, with Brent back below USD 100 and hitting its lowest level in almost four weeks. There has been a big effort to alleviate the pressures in the oil market in recent weeks which has no doubt helped but it's the lockdowns in China that are driving the latest declines. The country's zero-Covid policy is naturally having a dampening effect on demand which is aiding the rebalancing efforts.

11-04-2022 14:36 GMT by Craig Erlam

France outperforms after weekend election

European stocks are slipping again at the start of what is likely to be another very lively week in financial markets. That has very much become the norm this year for obvious reasons but this week has an interesting mix of central bank decisions, the start of earnings season and major data releases which will keep us all on our toes. And then of course there's China, where restrictions are causing concern, property firms are back in the spotlight and policymakers could unleash some support afte

11-04-2022 14:32 GMT by Craig Erlam

Euro gets slight lift from French vote

The euro clawed its way back to the 1.09 line on Monday but has retreated. EUR/USD fell 1.57% last week and hasn't had a winning session in the month of April. It's Macron vs.

11-04-2022 09:45 GMT by Kenneth Fisher

Dollar/yen sails past 125

The Japanese yen continues to lose ground. Last week, USD/JPY rose 1.41% and has added another 0.97% on Monday.

11-04-2022 07:34 GMT by Kenneth Fisher

New Zealand dollar extends slide

The New Zealand dollar remains under pressure and is in negative territory at the start of the week. Earlier in the day, NZD/USD dropped to 0.6813, its lowest level since March 16th. Markets await RBNZ rate decision The RBNZ, like many other major central banks, is finding itself playing catch-up with soaring inflation.

11-04-2022 05:29 GMT by Kenneth Fisher

Oil falls on China fears, gold edges up

China's growth fears prompt oil selling Oil finished last week slightly higher in directionless trading. Brent crude rose 0.95% to USD 102.30 a barrel, and WTI rose 0.80% to USD 97.75 a barrel.

11-04-2022 04:22 GMT by Jeffrey Halley

US dollar grinds higher

US dollar holds onto gains The US dollar has a choppy session on Friday, the dollar index spiking to 100.19 before retreating to finish just 0.10% higher at 99.84. In Asia, an uncertain outlook on multiple fronts has lifted it 0.10% higher to 99.93.

11-04-2022 04:03 GMT by Jeffrey Halley

China worries sink Asian equities

China's Covid spike weighs on Asia markets On Friday, US equities limped into a non-descript finish to the week as inflation fears were compounded by growth fears, notably from China. The S&P 500 fell 0.27%, the Nasdaq tumbled by 1.34%, while the Dow Jones booked a 0.40% gain as investors rotated into value for the weekend.

11-04-2022 03:53 GMT by Jeffrey Halley

China gloom hangs over Asia

Although we have seen some interesting political developments across the world over the weekend, it is China that is weighing on Asian markets this morning. China inflation came in slightly above expectations YoY for March rising by 1.50%, while PPI eased back to 8.30% YoY, likely thanks to Covid restrictions crimping economic activity. China's Covid spike threatens economy It is China’s Covid situation that is making Asia nervous.

11-04-2022 03:44 GMT by Jeffrey Halley

US Close - Stocks pare losses on reports ECB working on a tool to tackle yields, Canadian jobs, Oil rebounds, Gold higher, Bitcoin struggles

US stocks pared losses after reports that the ECB is working a crisis tool that could help tackle what seems to be a likely surging bond yield problem for the southern periphery. The ECB has the hardest job of all the other major central banks and this potential tool shows they are trying to get ahead of what will be an unbalanced economic recovery once inflation eases. Wall Street is looking at surging Treasury yields and swapping out tech stocks for more defensive plays such as energy, finan

08-04-2022 14:34 GMT by Edward Moya

Gold - Breaking higher or still range-bound?

Period of range tightening at an end Gold has been in consolidation for days but it may be breaking out of this at the end of the week. The range has been consolidating in recent days, even at a time when other markets were seeing plenty of volatility on the back of another hawkish move by the Federal Reserve. That at one time would have been a negative for gold as higher rates are typically associated with lower gold prices. But these aren't ordinary times.

08-04-2022 11:39 GMT by Craig Erlam

Week Ahead - Rapid tightening on the way

There has been incredible resilience in equity markets in recent weeks as central banks have ramped up interest rate expectations, particularly at the Fed, and bond markets have at times priced in a recession. While there have been wobbles in stock markets, they've quickly recovered which suggests investors may not be buying the recession warnings.

08-04-2022 10:54 GMT by Craig Erlam

Canadian dollar steadies, job data next

The currency markets are in calm waters today, with one eye on the weekend. The Canadian dollar is no exception, as USD/CAD is unchanged, trading just shy of the 1.26 line. The Federal Reserve continues to send out hawkish feelers to the markets.

08-04-2022 07:33 GMT by Kenneth Fisher

Oil dips to USD 100, gold consolidates

Oil hovers around USD 100 A second weekly decline in oil prices has eased some of the pressures on the global economy going forward, thanks to a combination of factors including huge SPR releases and Chinese lockdowns. Still, at around USD 100 a barrel, prices are very high and there remain significant upside risks going forward. How prolonged and widespread Chinese lockdowns become could be a key factor in the short-term, with it being such a large consumer and some cities with very few cases a

08-04-2022 06:55 GMT by Craig Erlam

Ending a bad week on a positive note

The stock market recovery has stalled this week despite indices ending on a positive note as investors digest the latest speak from central banks. Naturally, front and centre on this is the Fed which has notably become more hawkish, something the minutes confirmed is not just a knee-jerk response to the latest economic reports. We all expect James Bullard at this point to be at the more hawkish end of the spectrum, so his call this week for rates to hit 3.5% this year didn't cause the shock and

08-04-2022 06:50 GMT by Craig Erlam

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