Connect with us

Business

Stocks Slump Amid China Unrest, Dollar Advances: Markets Wrap

News Agencies

Published

on

(Bloomberg) — Shares tumbled and the dollar climbed as markets opened Monday to news of growing unrest in China over Covid restrictions.

Most Read from Bloomberg

Chinese equities led the declines, with weakness also evident in Australia, Japan and South Korea. US futures dropped as modest customer traffic and heavy discounting by American retailers on Black Friday added to the downbeat tone.

The greenback strengthened on haven demand, showing notable gains against the currencies of Australia and South Africa, both of which are exposed to trade with China. The offshore yuan dropped.

Advertisement

“Markets will respond negatively to the widespread protests and rising case numbers, which are likely to trigger new supply-chain disruptions and dampen consumption demand, at least in the short term,” said Gabriel Wildau, managing director at Teneo Holdings LLC in New York.

Oil fell as developments in China hurt appetite for risk and the outlook for demand, adding to stresses in an already-fragile global market. West Texas Intermediate Crude slid to the lowest level since 2021.

Gold edged lower as the dollar strengthened, placing downward pressure on the precious metal.

Advertisement

Treasury yields held near recent lows. Moves were also relatively muted in Australian and New Zealand government bond yields.

The downbeat mood emanating from China contrasts with the boost to sentiment in global markets last week after the Federal Reserve’s Nov. 1-2 meeting minutes showed most officials backing slowing the pace of interest-rate hikes.

Fed Focus

Advertisement

Since the Fed’s latest meeting, investors have parsed a bevy of economic data that somewhat eased inflation concerns, further strengthening the case for smaller rate hikes.

The S&P 500 notched a weekly gain of 1.5% that took the index to the highest level since early September. The Nasdaq 100 also eked out a gain for the week.

Advertisement

All eyes will be on the US jobs report this week and on Fed Chair Jerome Powell and New York Fed President John Williams, who are among central bank officials scheduled to speak.

Amid the challenges in China, the nation’s central bank on Friday cut the amount of cash lenders must hold in reserve for the second time this year, an escalation of support for an economy that’s being weighed down by Covid curbs.

“Anything exposed to China is probably going to be vulnerable,” said Jessica Amir, a market strategist at Saxo Capital Markets in Sydney. “Forward earnings of Chinese exposed companies will be in question and investors will probably express that by selling.”

Advertisement

Key events this week:

  • Fed’s John Williams speaks, Monday

  • Fed’s James Bullard MarketWatch interview, Monday

  • ECB’s Christine Lagarde addresses European Parliament committee, Monday

  • Euro area economic confidence, consumer confidence, Tuesday

  • US Conference Board consumer confidence, Tuesday

  • EIA crude oil inventory report, Wednesday

  • China PMI, Wednesday

  • Fed Chair Jerome Powell speech, Fed’s Michelle Bowman Lisa Cook speak, Wednesday

  • Fed releases its Beige Book, Wednesday

  • US wholesale inventories, GDP, Wednesday

  • S&P Global PMIs, Thursday

  • US construction spending, consumer income, initial jobless claims, ISM Manufacturing, Thursday

  • Fed’s Lorie Logan, Michelle Bowman, Michael Barr speak, Thursday

  • BOJ’s Haruhiko Kuroda speaks, Thursday

  • US unemployment, nonfarm payrolls, Friday

  • Fed’s Charles Evans speaks, Friday

  • ECB’s Christine Lagarde speaks, Friday

Some of the main moves in markets:

Stocks

Advertisement
  • S&P 500 futures fell 0.6% as of 10:32 a.m. Tokyo time.

  • Nasdaq 100 futures fell 0.9%

  • Euro Stoxx 50 futures fell 0.7%

  • The Topix Index fell 0.7%

  • The S&P ASX Index fell 0.5%

  • The Hang Seng Index fell 3.6%

  • The Shanghai Composite Index fell 1.4%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.4%

  • The euro fell 0.3% to $1.0361

  • The Japanese yen rose 0.2% to 138.85 per dollar

  • The offshore yuan fell 0.8% to 7.2508 per dollar

  • The Australian dollar fell 1% to $0.6686

Cryptocurrencies

  • Bitcoin fell 2.3% to $16,183.26

  • Ether fell 3.3% to $1,174.5

Bonds

Advertisement
  • The yield on 10-year Treasuries declined one basis point to 3.67%

  • Japan’s 10-year yield was little changed at 0.25%

  • Australia’s 10-year yield declined two basis points to 3.55%

Commodities

  • West Texas Intermediate crude fell 2.5% to $74.39 a barrel

  • Spot gold fell 0.3% to $1,748.97 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Georgina Mckay and Jacob Gu.

Advertisement

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

Advertisement
Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Entertainment9 hours ago

Stephen Dorff slams ‘garbage’ superhero movies, Marvel’s ‘Blade’ reboot: ‘We already did it and made it the best’

Stephen Dorff attends the premiere of his movie “Divinity” on Jan. 21 at the 2023 Sundance Film Festival in Park...

Entertainment10 hours ago

Yoshiki, glam-rocker responsible for ‘changing Japan’s culture,’ eyes U.S. stardom with supergroup the Last Rockstars: ‘It’s kind of cool to break some kind of boundary again’

When Japanese musician/composer/producer Yoshiki founded seminal glam-metal band X Japan back in 1982, pounding the drums in kabuki-esque facepaint, peroxide-blond...

Entertainment12 hours ago

Britney Spears asks fans to respect her privacy after police welfare check: ‘Things went a little too far’

Britney Spears says things went “too far” after fans called police to her home. (Photo: FilmMagic) Britney Spears broke her...

Entertainment13 hours ago

Camila Mendes details struggles with eating disorder: ‘I was really afraid of eating carbs’

Camila Mendes opens up about recovering from an eating disorder. (Photo: Frazer Harrison/Getty Images) Camila Mendes is opening up about...

Entertainment14 hours ago

Amy Robach and T.J. Holmes mediating with ABC amid suspension: ‘It’s all a huge mess,’ says source

T.J. Holmes and Amy Robach’s fate at GMA3 unclear as the two begin a mediation with ABC. (Photo: Getty Images)...

Entertainment17 hours ago

‘Shazam 2’ Trailer Highlights the Villainous Daughters of Atlas

A new Shazam! Fury of the Gods trailer has been released, giving fans a closer look at the upcoming DC...

Entertainment17 hours ago

Salma Hayek’s see-through dress leaves Channing Tatum speechless: ‘I have no comment’

Salma Hayek stuns in a see-through dress at the premiere for Magic Mike’s Last Dance. (Photo: Getty Images) Salma Hayek...

Entertainment18 hours ago

Succession season 4 teaser promises more warring, more Wambsgans, and a wedding

Succession will return for its fourth season March 24, HBO announced today. And we also got us our first, predictably...

Advertisement

Latest Sports

Sports37 mins ago

Record-hunter Shiffrin blows away rivals to win Kronplatz giant slalom

Mikaela Shiffrin continued her bid to become the most successful alpine World Cup skier of all-time after winning Wednesday's giant...

Sports1 hour ago

Inside a stunned Memphis Grizzlies locker room after a two-point loss to the Warriors

The Memphis Grizzlies wanted a win bad on Wednesday night against the Golden State Warriors. Instead, they lost their fourth...

Sports2 hours ago

Warriors’ Jonathan Kuminga taking giant steps toward immense NBA potential

Jonathan Kuminga has moved beyond the nights when he was glued to the bench and is playing a significant role...

Sports2 hours ago

Raptors trade rumours: Interest in VanVleet, Anunoby picks up; Trent Jr. could re-sign

As the NBA Trade Deadline approaches, interest in the Raptors' core pieces is picking up around the league.

Sports2 hours ago

Finley Chastain, nation’s top-ranked eighth-grader, commits to Lady Vols basketball

Finley Chastain, the nation's No. 1 prospect for the Class of 2027, announced her committed to Tennessee Lady Vols basketball...

Sports3 hours ago

Dana Brown to take over as GM of the Houston Astros, a well-earned but dubious honor

In joining the reigning champions, Brown becomes MLB's only Black GM.

Sports3 hours ago

Aaliyah Edwards, No. 5 UConn run away with 84-67 win in renewed battle with Tennessee

UConn beat Tennessee on Thursday night in Knoxville in what was its fourth straight win over the Lady Vols.

Sports4 hours ago

Boogie Ellis has career-best performance to will USC past No. 8 UCLA

Boogie Ellis has found his basketball zen, as he showed Thursday night. "It's basketball -- you're going to have your...

Technology Hot News

Technology1 week ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology1 week ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology1 week ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology1 week ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology1 week ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology1 week ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology2 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology2 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement