In Asian Equity Markets stocks lost ground on Monday, retreating from over three-week highs as worries about a global economic downturn sapped investors’ risk appetite. Japan’s Nikkei retreated 0.75 percent, while Chinese blue chips eased 0.13 percent. Hong Kong’s Hang Seng slid 0.45 percent, with its tech index tumbling 1.51 percent. MSCI’s broadest index of Asia-Pacific shares lost 0.62 percent to 158.68, after touching the highest since June 29 at 160.03 on Friday.
In Currency Markets the dollar was on a firm footing on Monday, as traders braced for a sharp U.S. interest rate hike this week and looked for safety as data points to a weakening global economy. The greenback was up slightly against most majors in the Asia session, trading at $1.0208 on the euro and steadying Friday losses to buy 136.26 Japanese yen. The U.S. dollar index steadied at 106.650 on Monday, just below a two-decade high made in mid July at 109.290 and analysts don’t see much in the way of hurdles to the dollar ahead.
In US Equity Markets stocks fell on Friday as disappointing earnings from Snap spooked investors and shares in social media and ad tech firms fell, offsetting gains from card issuer American Express following an upbeat forecast. The Dow fell 0.43 percent, to 31,899.29, the S&P 500 lost 0.93 percent, to 3,961.63 and the Nasdaq Composite fell 1.87 percent, to 11,834.11. Verizon Communications Inc lost 6.8 percent after announcing it cut its annual adjusted profit forecast as inflation weighs. American Express Co rose 1.9 percent on strong earnings and an increased revenue forecast.
In Commodities Markets U.S. crude prices settled below $95 a barrel for the first time since April in choppy trading on Friday after the European Union said it would allow Russian state-owned companies to ship oil to third countries under an adjustment of sanctions agreed by member states this week. U.S. WTI settled 1.7 percent, lower at $94.70 a barrel, while Brent crude futures fell 0.6 percent, to $103.20. Spot gold rose 0.5 percent to $1,727.09 per ounce. Spot silver was unchanged at $18.84 per ounce while platinum rose 1 percent to $880.00. Palladium rose 0.5 percent at $1,902.18.
In European Equity Markets stocks notched up their best week in two months on Friday as concerns over an energy supply crunch eased, bringing some calm to investors worried about a big rise in interest rates and a political crisis in Italy. The pan-European STOXX 600 index rose 0.3 percent. Economy-linked stocks such as banks fell 1.2 percent, while rising oil prices lifted heavy-weigh energy stocks 1.2 percent. Danske Bank fell 2.2 percent as it axed dividends, while Swiss elevator and escalator manufacturer Schindler fell 3.9 percent after cutting 2022 revenue guidance.
In Bond Markets the U.S. 10-year Treasury note yield was on track to end the week near its lowest since late May after weak data on Friday added to worries about the global economy and traders reassessed the Federal Reserve’s ability to raise rates much further. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 12.1 basis points at 2.974 percent. The yield on 10-year Treasury notes was down 15 basis points to 2.758 percent. The yield on the 30-year Treasury bond was down 9.7 basis points to 2.975 percent.