In Asian Equity Markets stocks fell on Thursday to their lowest since April 2020 as risk appetite among investors faded after inflation data across the globe re-ignited fears of aggressive interest rate hikes by the Fed. MSCI’s broadest index of Asia-Pacific shares outside Japan fell as much as 1.8 percent to 436.14, before cutting some losses. The index was last down 0.79 percent at 440.82. Australia’s S&P/ASX 200 index was 1.12 percent lower, while Japan’s Nikkei fell 1 percent. China’s stock market fell on Thursday while Hong Kong stocks hit levels last seen during the 2008-09 global financial crisis.
In Currency Markets the dollar loomed over major peers on Thursday as Treasury yields peaked at multi-year highs, while the yen slid to a fresh 32-year low and kept markets on high alert for any signs of an intervention. The U.S. dollar index was up 0.08 percent to 113.07, after rising almost 1 percent overnight. The Japanese yen hit a fresh trough of 149.96 per dollar, its lowest since August 1990, and last bought 149.92. The euro was down 0.1 percent to $0.9762. The Aussie fell 0.58 percent to $0.6234, while the kiwi fell 0.87 percent to $0.5627.
In US Equity Markets stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc shares. The Dow fell 0.33 percent, to 30,423.81, the S&P 500 lost 0.67 percent, to 3,695.16 and the Nasdaq Composite fell 0.85 percent, to 10,680.51. Dow components Procter & Gamble Co gained 0.93 percent and Travelers Companies Inc rose 4.44 percent after the companies posted better-than expected quarterly profit.
In Commodities Markets oil prices rose on Wednesday as caution over tightening supply countered the negative impact of uncertain demand, and news that the United States will release more crude from its reserves. Brent crude futures for December settlement ended up 2.6 percent, to $92.41 a barrel. U.S. WTI crude for November, which is expiring on Thursday, ended at $85.55 a barrel, up 3.3 percent. Spot gold fell 1.5 percent to $1,627.81 per ounce. Meanwhile, spot silver fell 2 percent to $18.38 per ounce. Platinum fell 2.3 percent to $886.75 per ounce while palladium lost 1.1 percent to $1,990.22.
In European Equity Markets stocks fell on Wednesday as investors fretted about runaway inflation, the prospect of more interest rate hikes and a mixed batch of earnings reports. The region-wide STOXX 600 index ended 0.5 percent lower, snapping a four-day rally that was mainly driven by hopes of a better-than-expected earnings season and the UK’s fiscal policy reversal. ASML’s shares jumped 8.2 percent after the chip equipment maker reported upbeat third-quarter sales and profit, and said it did not expect a large impact from U.S. sanctions on China.
In Bond Markets a selloff in U.S. government bonds resumed on Wednesday, pushing the benchmark 10-year Treasury yield to its highest level since mid-2008, as investors largely shrugged off a weak housing report and expected the Federal Reserve to remain aggressive in tightening rates. U.S. 10-year yields rose to 4.136 percent, their highest since July 2008 and were last up near 13 basis points (bps) at 4.127 percent. U.S. 30-year yields also rose to 4.147 percent. On the short-end of the curve, U.S. two-year yields rose to a 15-year peak of 2.556 percent and were last up 11.3 bps at 4.55 percent.