European equity futures inched lower, raising the prospect that a regional benchmark may fall for a fifth consecutive day after pressure on riskier assets in Asia and the US.
(Bloomberg) — European equity futures inched lower, raising the prospect that a regional benchmark may fall for a fifth consecutive day after pressure on riskier assets in Asia and the US.
Stocks in Japan, Australia and South Korea followed a the S&P 500, which dropped for the fifth day.
Hong Kong shares rallied on reports that mask-wearing requirements may be scrapped. Shares in mainland China seesawed.
A gauge of the dollar gave up earlier gains to be little changed. The offshore yuan held below the 7 level to the greenback as investors continued to balance China easing Covid restrictions and a dimming outlook for the global economy.
The euro rose slightly while the pound was little changed.
Treasury yields rose after a sharp decline in the prior session.
Read: Bruising Stock Reversal Shows How Fed’s Pivot May Come Too Late
Chinese regulators asked the nation’s biggest insurers to buy bonds being offloaded as retail customers pull their cash from fixed-income investments, according to people familiar with the matter.
Iris Pang, chief economist for Greater China at ING Groep NV, said China’s economy would face further strain next year despite relaxed Covid restrictions.
“The manufacturing sector in 2023 is not going to look good because of the very weak export sector and a likely recession in the US and Europe,” she said in an interview with Bloomberg Television.
“We can’t be too optimistic for retail sales to boost growth in 2023. It may happen in the second half but not in the first half.”
Elsewhere in markets, oil rose after a four-day drop as investors weighed the impact of China’s moves to ease virus curbs against a looming US slowdown.
Gold slipped after rising 0.9% in the previous session on weakness in Treasury yields, with traders looking to Friday’s US producer price report and the US Consumer Price Index print next week.
Key events this week:
- ECB President Christine Lagarde speaks, Thursday
- US initial jobless claims, Thursday
- China PPI, aggregate financing, money supply, new yuan loans, Friday
- US PPI, wholesale inventories, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 were little changed as of 6:51 p.m.
Tokyo time. The S&P 500 fell 0.2%
- Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.5%
- Japan’s Topix Index fell 0.4%
- The Hang Seng Index rose 3.2%
- The Shanghai Composite Index fell 0.1%
- Euro Stoxx 50 futures fell 0.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0515
- The Japanese yen was little changed at 136.72 per dollar
- The offshore yuan was little changed at 6.9673 per dollar
- The British pound was little changed at $1.2202
Cryptocurrencies
- Bitcoin fell 0.1% to $16,810.27
- Ether fell 0.3% to $1,228.67
Bonds
- The yield on 10-year Treasuries advanced three basis points to 3.45%
- Australia’s 10-year yield advanced one basis point to 3.37%
Commodities
- West Texas Intermediate crude rose 1.7% to $73.21 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rita Nazareth and Stephen Kirkland.
More stories like this are available on bloomberg.com
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