In Asian Equity Markets stocks trimmed losses on Friday after a volatile session for U.S. equities, while the dollar hovered near 20-year highs as investors continued to digest worries about persistently high inflation and tightening central bank policy. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.5 percent from Thursday’s 22-month closing low, trimming its losses for the week to around 3 percent. Australian shares were up 1.53 percent, while Japan’s Nikkei stock index jumped 2.61 percent. In China, the blue-chip CSI300 index was up 0.41 percent and Hong Kong’s Hang Seng rose 2.21 percent.
In Currency Markets the dollar was down on Friday morning in Asia but remains near a 20-year high. Persistent global economic worries gave the dollar support. The US Dollar Index that tracks the greenback against a basket of other currencies edged down 0.14 percent to 104.737. The Aussie dollar gained 0.46 percent to $0.6885, while the kiwi jumped 0.35 percent to $0.6251. Against the Japanese yen, the dollar gained 0.58 percent to 129.06. Thursday’s 1.2 percent decline for the pair was its biggest daily fall this year.
In US Equity Markets stocks ended a whipsaw session slightly lower on Thursday, as investors juggled signs of peaking inflation with fears that it could remain elevated, prompting ever more aggressive tightening from the Federal Reserve. The Dow fell 0.33 percent, to 31,730.3, the S&P 500 lost 0.13 percent, to 3,930.08 and the Nasdaq Composite added 0.06 percent, to 11,370.96. Twitter Inc shed 2.2 percent. Its chief executive officer announced a hiring freeze and the departure of two of its leaders in view of the takeover effort by Elon Musk.
In Commodities Markets oil prices settled mixed on Thursday as supply concerns and geopolitical tension in Europe got the upper hand over the economic fears dogging financial markets as inflation soars. Brent crude fell 6 cents to settle at $107.45 a barrel. WTI crude rose 0.4 percent, to settle at $106.13. Spot gold fell 1.6 percent to $1,823.14 per ounce. Spot silver fell 4.3 percent to $20.63 per ounce. Palladium slid 7 percent to $1,892.69, having earlier slid as much as 8.2 percent to its lowest since January at 1,867.68. Platinum fell 5.2 percent to $940.51.
In European Equity Markets stocks fell on Thursday, with most cyclical parts of the market coming back down, a day after U.S. inflation data fuelled worries about the impact of rising interest rates on economic growth. The continent-wide STOXX 600 index slid 0.8 percent, reversing much of the mid-week gains. Technology, automakers and mining stocks were the top losers among sectors. Siemens fell 2.5 percent after it said it will quit the Russian market due to the war in Ukraine, taking a 600 million euros ($630.18 million) hit to its business during the second quarter.
In Bond Markets U.S. Treasury yields rose in line with those of European government bonds on Thursday, with two-year yields hitting their highest in three years, after hawkish comments from an ECB official and as investors prepare for aggressive Federal Reserve rate hikes. Ten-year Treasury yields were last 2.882 percent. They reached a high of 2.981 percent on Wednesday, the highest since Dec. 2018. Two-year yields, which are highly sensitive to interest rates, reached 2.674 percent on Thursday, also the highest since Dec. 2018, before falling back to 2.661 percent.