- AUD -1.9% to 69.26 US cents close to 6.57 am AEST
- Bitcoin -15% up to $ 23,242.85 near 6.55am AEST
Bitcoin crashed, reflecting general distrust and after the big US cryptocurrency lending company Celsius Network froze withdrawals and transfers.
U.S. 10-year note yield rose 21 basis points to 3.37 percent at 16.52 in New York. The two-year yield was 3.36 percent; the five-year yield was 3.48 percent.
In a tweet, Mohamed El-Erian said: “The U.S. government bond market is indicating a double concern for the Federal Reserve and markets in general: strong sell-off along with some signs of stress for the US government. orderly functioning of the market. ”
The Washington Post’s Board of Directors called on the Fed to raise its key rate by 75 basis points this week: “The Fed is gaining little by slowing down the pain that everyone sees coming right now. “Enough to fight inflation. The board already made that mistake earlier this year. It shouldn’t stumble again.”
On Wall Street, sales were wide. The 11 sectors of the S&P 500 industry were lower, with an energy drop of 5.1%. Six sectors fell by at least 4.4%. The best performance was basic consumption, which fell 2.18 percent.
“If the markets are good at anything, it’s to remind investors that stock prices aren’t just going up, uninterrupted, forever,” said Charles Schwab’s chief investment strategist Liz Ann Sonders. a note.
JPMorgan’s global market strategists also tried to moderate concerns. “The movement of market prices with a risk of recession more than enough and we believe that a short-term recession will finally be avoided thanks to the strength of the consumer, the reopening / recovery of COVID and the political stimulus in China.
“We also see strong support from low investor positioning, depressed sentiment and corporate repurchase inflows. While we expect markets to recover annual losses during the second half to end approximately flat, we do not advocate indiscriminate buying of markets. We maintain a large overweight position in commodities both at the asset class level and in the equity and foreign exchange sectors, given our supercycle thesis and to cover inflation and geopolitical risks. “
In a tweet, RMK CEO Rich Kleinbauer said: “I agree with Jim @biancoresearch and I suggest that the Fed go up 150 bp by Wednesday, as three 50 bp hikes over the next 90 days already have “Both scenarios are bad, so it’s best to rectify the mistakes of the previous policies as soon as possible. Start this week.”
The NYSE Fang + index fell 6.5%. Microsoft fell 4.2% and Alphabet lost 4.1%.
Apple, a predictor of the U.S. stock market with the highest S&P 500 weighting, has dropped 25 percent this year.
Amazon is close to falling below $ 1 trillion in market value, Meta is about to close at its lowest level since April 2020 after three days of losses and the four-day streak of Microsoft is the longest since March. Nvidia chip maker has lost more than half its value compared to last year’s high.
“Today’s move is a sign that investors are throwing their hands in the air, looking at the data and getting nervous about what they see,” David Lebovitz, global market strategist at JPMorgan Asset Management, told Bloomberg.
The VIX jumped more than 22 percent to 34.02.
Today’s agenda
Local: NAB business survey May at 11.30am AEST
Data Abroad: Industrial Production in Japan Late April; ZEW forecasts for the euro area June, industrial production April; United Kingdom April ILO unemployment rate; May PPI in the US at 10:30 p.m.
Market highlights
ASX futures down 294 points or 4.24 percent to 6634 near 7:00 AM
- -1.9% AUD to 69.24 US cents close to 6:20 AEST
- Bitcoin -15% up to $ 23,242.85 near 6.55am AEST
- A Wall St: Dow -2.8% S&P 500 -3.9% Nasdaq -4.7%
- New York: BHP -4.2% Rio -4% Atlassian -9.5%
- Tesla -7.1% Apple -3.8% Amazon -5.5% Netflix 7.2%
- In Europe: Stoxx 50 -2.7% FTSE -1.5% CAC -2.7% DAX -2.4%
- Cash -2.3% up to $ 1,828.45 is used at 2:12 p.m. New York time
- Brent crude + 0.4% to $ 122.54 a barrel
- Iron ore -3.5% to $ 136.60 a tonne
- 10 Year Yield: USA 3.37% Australia 3.67% Germany 1.63%
- US prices from 16:52 in New York
United States
First Trust: “We wouldn’t be surprised if the Fed raised rates by more than 50 bp on Wednesday, but we think it’s more likely to stay at just 50 bp. Why? Remember Powell was blunt in May that the Fed didn’t have to ‘go to 75 bp at the next meeting.
“In addition, Powell places a lot of weight, too much, in our opinion, on gradualism and signaling instead of focusing only on getting monetary policy where it needs to be to achieve the goal of controlling inflation.”
Europe
European equities fell to a three-month low on Monday as a sharp rise in US inflation raised concerns about the Federal Reserve’s aggressive rate hikes.
The pan-European STOXX 600 index fell 2.4% to its lowest level since March 7.
High-growth technology stocks fell 4.2% as government bond yields reached multi-year highs with bets on a faster tightening of monetary policy, with sectors linked to the economy , such as travel and leisure and carmakers, also fell 5.3% and 4.5%, respectively. respectively
Goods
Iron ore and steel benchmark futures fell on Monday as new outbreaks of COVID-19 in China revived fears that the blockades would dampen demand from the world’s largest steelmaker.
September’s most traded iron ore contract on China’s Dalian commodity exchange ended day trading 1.9 percent down to 903.50 yuan ($ 134.17) a tonne, after of having previously touched a minimum of two weeks of 886 yuan.
On the Singapore Stock Exchange, July’s most active contract for the steelmaking ingredient fell 2.9 percent to $ 135.70 a tonne at 7:05 GMT.
Beijing rushed to contain a “ferocious” outbreak, with millions of people facing mandatory tests and thousands under specific blockades, after the capital recently relaxed its edges.