U.S. Futures Fall, Asia Stocks Set for Choppy Open
U.S. equity futures retreated and stocks looked set for a choppy start Monday amid worries about high inflation and as investors await Chinese trade data that may show the economic toll of Covid lockdowns.
Contracts fell for Japan and Australia, while Hong Kong is shut for a holiday. Shares and bonds are coming off their fifth straight weekly drop, hampered by sharply tighter monetary policy and signs of a stagflation-like backdrop.
Commodity-market disruption stemming from Russia’s war in Ukraine continues to sustain price pressures. In the latest developments, the Group of Seven most-industrialized countries pledged to ban the import of Russian oil >>16236674 lb
Summary
Metals flat , WTI @ $108.9x off from it's $110.4x open from earlier , Natty Gas down -8.43% @ just above $8-cap#5
US 10 year flat @3.14% +0.073
Ruble down 0.72% in early trading-Cap #4
https://www.marketwatch.com/investing/currency/rubusd
https://www.dailyfx.com/natural-gas
https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart
cap#3
Western Banks Brace For $10 Billion Hit Over Russia Exit
Western banks are bracing for a $10 billion collective hit as they prepare to shutter operations in Russia over the invasion of Ukraine - a move which mirrors several US lenders last month. According to the Financial Times, international sanctions have "forced banks to consider turning their backs on a country that some lenders first entered more than a century ago."
This week a string of European banks set aside billions of euros in provisions ahead of the closure of their Russian operations, following similar moves by US lenders last month. Western banks collectively have $86bn of exposure to Russia — with close to 40,000 staff — and are setting aside more than $10bn in expectation of losses on their ventures, according to Financial Times calculations. -FT
https://www.bloomberg.com/markets/stocks/futures
https://www.bnnbloomberg.ca/u-s-futures-fall-asia-stocks-set-for-choppy-open-markets-wrap-1.1762912
The European Union is working on a similar plan but Hungary remains a holdout and the bloc’s talks are set to continue. Oil fluctuated near $110 per barrel.
Treasury yields, meanwhile, are in sight of levels last seen in 2018 and inflation data this week from the U.S. and elsewhere could drive bond-market swings. The dollar gained versus key peers in early trading in a sign of investor wariness.
Growth, inflation and war risks are providing investors will little respite. Later Monday, President Vladimir Putin is due to speak at Russia’s May 9 Victory Day parade, which marks the anniversary of Nazi Germany’s surrender in 1945. He may indicate his next steps for the Ukraine invasion.
The short-term outlook for the stock market “is still messy and there may be more downside as markets worry about a significant economic slowdown or ‘hard landing’ and aggressive interest-rate hikes,” Diana Mousina, senior economist at AMP Investments, wrote in a note.
The upcoming Chinese data may show that export growth slowed to its weakest pace since June 2020, while imports probably contracted for a second month. Premier Li Keqiang warned of a “complicated and grave” employment situation as Beijing and Shanghai tightened Covid curbs. French lender Société Générale, which has operated in Russia for 150 years, has set aside €561mn for the first quarter, and expects to lose €3.1bn ($3.3bn) on the sale of its Rosbank subsidiary - which was founded by billionaire Vladimir Potanin. The bank has 3.1 million retail customers throughout Russia and €18bn ($19.3bn) of total exposure to the country. Around 12,000 people are employed by Rosbank.
Italy's UniCredit has set aside €1.3bn ($1.37bn), and says that exiting Russia entirely could cost it €5.3bn ($5.6bn). The bank currently has 4,000 workers and 2 million customers in the country, where it has operated for 17 years. Other European banks preparing to take a hit are French bank Crédit Agricole, Austria's Raiffeisen, Swiss lender UBS, and Credit Suisse.
https://www.zerohedge.com/geopolitical/western-banks-brace-10-billion-hit-over-russia-exit
Watch for moar liquidations from Tiger Global as reported last week
>>16223270, >>16223287, >>16223300, >>16223331, >>16223428, >>16223468 Mkt Fags: The day after-$1.3T…meh and some historical perspective on Market drops over the last several decades-edition
excerpt
Today things look a little different. Tiger Global’s hedge fund lost 43.7 percent between January and the end of April, which in dollar terms is probably one of the largest hedge fund losses in history.
https://californianewstimes.com/aqr-regains-its-mojo-as-tiger-swoons/713943/