In Asian Equity Markets stocks fell on Friday while the U.S. dollar and Treasury yields rose in a reversal of a day earlier after investors expressed concerns that rising interest rates could hurt global economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 2.34 percent on Friday morning and is down 3.5 percent from last Friday’s close. Japan’s Nikkei was flat on its return from a three-day holiday. Chinese blue chips fell 2 percent on Friday and the Hong Kong benchmark shed 2.44 percent.
In Currency Markets the dollar was headed for a fifth winning week versus major peers on Friday, ahead of closely watched U.S. jobs report that’s likely to back the case for aggressive monetary policy tightening. The greenback added 0.22 percent to 130.46 yen, gaining 0.46 percent on the week, and taking it closer to last week’s 20-year top of 131.25. The euro fell 0.11 percent to $1.0529 on Friday, keeping it down 0.12 percent for the week, but the currency has mostly traded sideways since sliding to a five-year trough of $1.04695 last week.
In US Equity Markets stocks ended Thursday sharply lower amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve’s interest rate hike the previous day would not be enough to tame rising inflation. The Dow fell 3.12 percent, to 32,997.97, the S&P 500 lost 3.56 percent, to 4,146.87 and the Nasdaq Composite lost 4.99 percent, to 12,317.69. Technology megacaps slumped. Google-parent Alphabet Inc, Apple Inc, Microsoft Corp, Meta Platforms, Tesla Inc and Amazon.com all fell between 4.3 percent and 8.3 percent.
In Commodities Markets oil prices edged up on Thursday on supply worries after the European Union (EU) laid out plans for new sanctions against Russia including an embargo on crude. Brent futures rose 0.7 percent, to settle at $110.90 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.4 percent, to settle at $108.26. Spot gold fell 0.3 percent to $1,876.13 per ounce, having earlier hit its highest since April 29. Spot silver fell 2.4 percent to $22.40 per ounce, platinum was down 0.9 percent at $982.35, and palladium fell 3.1 percent to $2,185.83.
In European Equity Markets stocks fell for the second straight session on Thursday, with most major sectors handing back earlier gains made after less hawkish comments from the Federal Reserve. The pan-European STOXX 600 index closed 0.7 percent lower, led by the travel and leisure, banking and insurance sectors. Credit Suisse fell 2.8 percent after it froze 10.4 billion Swiss francs ($10.63 billion) of wealthy clients’ assets in the first quarter under sanctions imposed in connection with Russia’s invasion of Ukraine.
In Bond Markets U.S. Treasury yields rose on Thursday as traders questioned the Federal Reserve’s ability to keep the economy from falling into recession, with data pushing markets to price in a more aggressive monetary policy. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 9.6 basis points at 2.712 percent. The yield on 10-year Treasury notes was up 13.9 basis points to 3.054 percent after crossing above 3.1 percent for the first time since November 2018. The yield on the 30-year Treasury bond was up 15.2 basis points to 3.155 percent.