Shares in Asia unwound much of their earlier fall after US President Joe Biden said a missile that struck Poland was unlikely to have been fired from Russia.
(Bloomberg) — Shares in Asia unwound much of their earlier fall after US President Joe Biden said a missile that struck Poland was unlikely to have been fired from Russia.
The dollar was little changed after previous gains. The greenback had climbed while equities fell as markets in Asia opened after reports that explosion that killed two people was caused by a Russian-made rocket.
Poland’s zloty trimmed its decline but was still among the poorer performers against the dollar.
Biden convened a meeting of leaders at the Group of 20 summit to discuss the missile incident which damped earlier positive sentiment from signs that the Federal Reserve may slow interest-rate hikes.
US stocks had rallied on Tuesday after producer price index data undershot estimates, easing inflation concerns and supporting the case for a slowdown in rate hikes. A slew of Fed speakers in recent days have indicated the central bank could slow the tempo of rate rises while cautioning more work is needed to tame inflation.
“I don’t think we’re at the trough,” said Ann Berry, founder and managing partner of Threadneedle Ventures in New York, speaking on Bloomberg TV about the S&P 500. “I would not be surprised if we hit the 3,600 level again if we see the confidence that has come into the market deflate,” she said, implying a 10% decline from Tuesday’s closing price.
Read More: The Great Inflation Trade Falters, Whiplashing Momentum Players
Key events this week:
- US business inventories, cross-border investment, retail sales, industrial production, Wednesday
- Fed’s John Williams, Lael Brainard and SEC Chair Gary Gensler speak, Wednesday
- ECB President Christine Lagarde speaks, Wednesday
- Eurozone CPI, Thursday
- US housing starts, initial jobless claims, Thursday
- Fed’s Neel Kashkari, Loretta Mester speak, Thursday
- US Conference Board leading index, existing home sales, Friday
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 fell 0.1% as of 11:39 a.m. Tokyo time. The S&P 500 rose 0.9%
- Nasdaq 100 futures fell 0.1%. The Nasdaq 100 rose 1.5%
- The Topix Index was little changed
- The S&P ASX Index fell 0.3%
- The Hang Seng Index fell 0.1%
- The Shanghai Composite Index was little changed
- Euro Stoxx 50 futures fell 0.7%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.3% to $1.0382
- The Japanese yen fell 0.4% to 139.89 per dollar
- The offshore yuan fell 0.3% to 7.0667 per dollar
Cryptocurrencies
- Bitcoin rose 0.4% to $16,949.95
- Ether rose 1.3% to $1,262.12
Bonds
- The yield on 10-year Treasuries advanced three basis points to 3.80%
- Australia’s 10-year yield declined five basis points to 3.71%
Commodities
- West Texas Intermediate crude fell 0.3% to $86.65 a barrel
- Spot gold fell 0.2% to $1,775.84 an ounce
This story was produced with the assistance of Bloomberg Automation.
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