US Futures dive like oil, gas rises; China Data Loom: Markets Wrap
US Futures dive like oil, gas rises;  China Data Loom: Markets Wrap

US Futures dive like oil, gas rises; China Data Loom: Markets Wrap

This content was published on April 17, 2022 – 22:52

(Bloomberg) – Asian equities look set for a subdued open Monday ahead of Chinese economic data, which may shed light on the impact of Covid lockdowns. Prices of natural gas and oil rose due to risks due to Russia’s war in Ukraine.

Stock futures fell for Japan, while other markets, including Australia, Hong Kong and many in Europe, remain closed for Easter. Contracts for the S&P 500 and technology-heavy Nasdaq 100 fell.

China is due to release quarterly growth data and activity indicators for March. Officials lowered the reserve ratio on Friday, but refrained from lowering interest rates in a cautious approach to political easing amid inflation risks.

The possibility of a de facto EU embargo on Russian gas and the threat of some restrictions on crude oil in Europe’s next sanction package strengthened both commodities. US natural gas prices hit a more than 13-year high, in part because the country exports as much liquefied natural gas as possible to help Europe.

Government bonds will resume trading at large losses from the end of last week, when the 10-year yield rose above 2.80%. Renewed concerns about price pressure and rapid monetary tightening by the Federal Reserve triggered the sale. A measure of the dollar rose, and then the yen withdrew.

China’s Covid-related restrictions are tightening supply chains and fueling global inflationary pressures. The latter was already exacerbated by disruptions in the flow of goods due to the war and Russia’s isolation. Concerns are growing that the U.S. economy is facing a downturn from the Fed’s hub toward aggressive political austerity to curb the cost of living.

“Major regime changes are rarely smooth in either geopolitics or economics, and markets are underestimating these risks,” Eric Robertsen, chief strategist at Standard Chartered Bank Plc, wrote in a note. “We are increasingly concerned about a summer of turbulence and volatility.”

In Shanghai, officials announced plans to resume production after a lengthy shutdown. Companies should adopt so-called closed circuits, where workers live on site and are tested regularly, they said.

What to see this week:

  • Earnings include American Express, Bank of America, Bank of New York Mellon, China Telecom, IBM, Johnson & Johnson, Netflix, Tesla
  • China’s GDP, economic activity data, Monday
  • Market closures on Easter Sunday in the UK, large parts of Europe
  • The IMF / World Bank’s spring meetings start on Monday
  • St. Louis Fed President James Bullard speaks Monday
  • Chicago Fed President Charles Evans speaks Tuesday
  • EIA report on crude oil inventory, Wednesday
  • China’s prime interest rate on loans, Wednesday
  • Federal Reserve Beige Book, Wednesday
  • French presidential debate on Wednesday
  • San Francisco Fed President Mary Daly, Chicago Fed President Charles Evans, speaks Wednesday
  • Eurozone CPI, US First Unemployment Applications, Thursday
  • Fed President Jerome Powell, ECB President Christine Lagarde discusses global economy at IMF event on Thursday
  • Manufacturing PMIs: Eurozone, France, Germany, UK, Friday
  • Bank of England Andrew Bailey speaks on Friday

Some of the key movements in markets:

Equities

  • S&P 500 futures fell 0.3% from 1 p.m. 7:43 in Tokyo. The S&P 500 fell 1.2 percent. Thursday
  • Nasdaq 100 futures fell 0.6 percent. Nasdaq 100 fell 2.3 percent on Thursday
  • Nikkei 225 futures fell 0.2% previously

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1 percent.
  • The euro was at $ 1.0814
  • The yen was at 126.63 per dollar, down 0.1%
  • The offshore yuan was $ 6.3810 per dollar

Raw materials

  • West Texas Intermediate crude rose 0.8% to $ 107.78 per barrel
  • Gold was at $ 1,978.43 an ounce

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