US Stocks to Extend Slide, muh Yen breaches Key Level of 150 US 10y closer to 5% Markets Wrap
Futures on the tech-heavy Nasdaq 100 index extended declines in Asian trading after US shares slumped on a batch of poor corporate earnings. Currency traders were on edge after the yen fell to a new low for the year.
Contracts for US equities slipped following Meta Inc.’s drop in after-market trading, when the company said its earnings were uncertain for 2024. The tech-heavy Nasdaq 100 index already slid 2.5% on Wednesday, weighed by Google’s parent Alphabet Inc.’s disappointing cloud figures and Texas Instruments Inc.’s bearish forecasts.
Treasury yields held most of Wednesday’s surge in Asia, which was triggered by poor demand for a sale of five-year notes deepened anxiety about auction size increases expected to be announced next week. A return of rising oil prices in their previous session helped send 10-year yields back toward 5%.
Meanwhile, currency traders will remain on alert after a rise in Treasury yields pushed the Japanese yen to a fresh low this year. The move increases the risk of intervention from the authorities in Tokyo, who have repeatedly said they wouldn’t rule out any options to curb against the excessive moves. Japan’s finance minister Shunichi Suzuki said authorities are watching currency moves with a high sense of urgency. Oil steadied with West Texas Intermediate trading near $85 a barrel, after rising 2% in the previous session. Israel’s Prime Minister Benjamin Netanyahu said his nation was in a battle for its very existence, and that an invasion was being prepared. The remarks reignited a war premium in the oil price that had been subsiding over the last few sessions.
In Asia, benchmarks in Australia, South Korea and Japanese fell in early trading while stock futures in China and Hong Kong pointed to gains after Beijing unveiled more measures to stimulate the economy. The Golden Dragon index, a gauge of Chinese shares in the US, slumped over 2%.
Treasury Volatility
Wall Street grappled with a batch of corporate earnings which sent stocks lower on Wednesday amid heightened Treasury volatility
Key events remaining this week:
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European Central Bank interest rate decision; President Christine Lagarde holds news conference, Thursday
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US wholesale inventories, GDP, US durable goods, initial jobless claims, pending home sales, Thursday
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Intel, Amazon earnings, Thursday
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China industrial profits, Friday
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Japan Tokyo CPI, Friday
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US PCE deflator, personal spending and income, University of Michigan consumer sentiment, Friday
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Exxon Mobil earnings, Friday
https://finance.yahoo.com/news/asian-stocks-open-mixed-yen-224036423.html
https://tradingeconomics.com/japan/currency
https://tradingeconomics.com/united-states/government-bond-yield
https://tradingeconomics.com/japan/government-bond-yield