Stocks in Asia slipped and US equity futures declined in subdued trading ahead of a pivotal US monthly payrolls report. Disappointing earnings from chipmakers weighed on broader investor sentiment.
(Bloomberg) — Stocks in Asia slipped and US equity futures declined in subdued trading ahead of a pivotal US monthly payrolls report. Disappointing earnings from chipmakers weighed on broader investor sentiment.
The MSCI Asia Pacific Index fell as much as 1% and is on track to snap a three-day winning streak. Technology shares in Hong Kong led the retreat after Advanced Micro Devices Inc. and Samsung Electronics Co. reported earnings that missed analyst estimates. US equity contracts fell and European stock futures pointed to a lower open.
The dollar traded slightly higher against most major currencies, while the offshore yuan slipped after China said its foreign-exchange reserves fell to the lowest since 2017. The yen earlier weakened against the dollar toward levels that triggered direct market intervention last month, as traders test authorities’ tolerance for currency depreciation. Treasuries were little changed.
Friday’s US jobs report is forecast to show employers added a further 255,000 workers in September. That would be the fewest jobs added in a month since a decline in late 2020.
It comes amid a drumbeat of hawkish comments from Federal Reserve officials — Chicago Fed President Charles Evans said the benchmark rate will probably be at 4.5% to 4.75% by next spring, and Minneapolis Fed’s Neel Kashkari said the central bank is “quite a ways away” from pausing its campaign of rate increases.
Read more: VIX Surge to 150 Is Day’s Biggest Options Bet for ‘Fear Gauge’
“There’s so much money out in the system chasing little supply,” Mariann Montagne, portfolio manager at Gradient Investments, said on Bloomberg Radio. “And what really needs to happen is we need more manufacturing in the US, more dependable sources of parts. We need more manufacturing goods available so that we can have a better economy.”
Ahead of the European open, Credit Suisse Group AG said it was offering to buy back debt securities for cash worth approximately 3 billion Swiss francs ($3 billion).
Elsewhere, oil topped $88 a barrel and gold fell. Bitcoin traded around $20,000.
Key events this week:
- US unemployment, wholesale inventories, nonfarm payrolls, Friday
- BOE Deputy Governor Dave Ramsden speaks at event, Friday
- Fed’s John Williams speaks at event, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures lost 0.3% as of 2:01 p.m. Tokyo time. The S&P 500 fell 1%
- Nasdaq 100 futures fell 0.3%. The Nasdaq 100 fell 0.8%
- Japan’s Topix index dropped 0.8%
- South Korea’s Kospi index was down 0.3%
- Hong Kong’s Hang Seng Index slumped 1.3%
- Australia’s S&P/ASX 200 Index decreased 0.6%
- Euro Stoxx 50 futures slipped 0.4%
Currencies
- The Bloomberg Dollar Spot Index rose 0.1%
- The euro strengthened 0.1% to 0.9795 per dollar
- The British pound was at 1.1161 per dollar
- The Japanese yen surged 0.1% to 145.05 per dollar
- The offshore yuan was at to 7.1016 per dollar
Bonds
- The yield on 10-year Treasuries was little changed at 3.82%
- Australia’s 10-year yield advanced almost eight basis points to 3.85%
Cryptocurrencies
- Bitcoin fell 0.6% to $19,924
- Ether fell 0.8% to $1,353
Commodities
- West Texas Intermediate crude was at $88.29 a barrel
- Gold fell 1.7% to $1,710.74 an ounce
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