Stock rally fizzles on revived inflation fears

22/6/2022 4:24:00 PM

Stock rally fizzles on revived inflation fears

Asian Stocks, Asian Share

Stock rally fizzles on revived inflation fears

TOKYO, June 22 — Asian stocks slipped across the board today, failing to extend Wall Street’s rally as persistent worries about interest rates and inflation remained a key...

Wednesday, 22 Jun 2022 2:05 PM MYTTOKYO, June 22 — Asian stocks slipped across the board today, failing to extend Wall Street’s rally as persistent worries about interest rates and inflation remained a key focus for investors, while the Japanese yen hit a fresh 24-year low against the dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.39 per cent, still up 1.02 per cent on the more than five-week low it hit on Monday. Tokyo’s Nikkei gave up early gains and was flat.Investors are continuing to assess how worried they need to be about central banks pushing the world economy into recession as they attempt to curb red hot inflation with interest rate increases.

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Tokyo stocks open higher on US reboundTOKYO, June 22 — Tokyo stocks opened higher on Wednesday as investors took heart from a strong bounce back on Wall Street following last week’s rout over inflation fears. The...

Morgan Stanley, Goldman strategists see more stock market losses(June 22): US stocks are staging a furious rally on Tuesday but top strategists at Societe Generale SA and Goldman Sachs Group Inc. warn of more declines ahead as equities have yet to fully price in the risk of a recession.The technology-heavy Nasdaq 100 and the S&P 500 each surged more than 2.6% on Tuesday following a sharp rout last week that sent the US benchmark index into a bear market. While the selloff is luring investors chasing cheaper

Tencent slashes wager on stock that soared 684% in edtech frenzy(June 21): Tencent Holdings Ltd slashed its stake in a Chinese education technology firm that staged an eye-watering rally in the past two weeks, as investors debate whether the sector’s surge is sustainable.The mobile gaming giant reduced its holdings in Koolearn Technology Holding Ltd to 1.6% from 9%, according to Hong Kong Exchange filings. Koolearn surged 684% in just nine trading sessions through June 16, as its foray into livestreaming e-commerce created social media buzz and market excitement after

Tech and energy shares boost Wall St in bear market rallyNEW YORK/BENGALURU (June 21): Wall Street's major indexes climbed on Tuesday, as investors scooped up shares of megacap growth and energy companies that were hammered in a rout last week on worries over a global economic downturn.All the 11 major S&P sectors advanced in the short-term rebound. The S&P 500 and the Nasdaq are still in bear market, with the benchmark index down 21.6% from its record closing high on Jan 3.'We are still viewing this as a rally in

Britain’s FTSE rises as oil rally boosts index; Ocado drops 5pcLONDON, June 21 — London’s FTSE 100 index climbed today, as a rally in crude prices saw energy stocks surge, while shares of Ocado plunged 5 per cent after the online...

Spain to cut electricity tax to ease inflation painMADRID: Spain will cut the value-added tax on electricity by half to shield consumers from soaring inflation fuelled by Russia&039;s invasion of Ukraine, ...

for the latest news you need to know.for the latest news you need to know.A (June 22): US stocks are staging a furious rally on Tuesday but top strategists at Societe Generale SA and Goldman Sachs Group Inc.A (June 21): Tencent Holdings Ltd slashed its stake in a Chinese education technology firm that staged an eye-watering rally in the past two weeks, as investors debate whether the sector’s surge is sustainable.

Wednesday, 22 Jun 2022 2:05 PM MYT TOKYO, June 22 — Asian stocks slipped across the board today, failing to extend Wall Street’s rally as persistent worries about interest rates and inflation remained a key focus for investors, while the Japanese yen hit a fresh 24-year low against the dollar. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1. The benchmark Nikkei 225 index was up 0.39 per cent, still up 1.6% on Tuesday following a sharp rout last week that sent the US benchmark index into a bear market.02 per cent on the more than five-week low it hit on Monday.54 points, at 26,421. Tokyo’s Nikkei gave up early gains and was flat. It is “too early” to call Koolearn’s transition to livestreaming business a viable option for other education names, he added.

Investors are continuing to assess how worried they need to be about central banks pushing the world economy into recession as they attempt to curb red hot inflation with interest rate increases.70 per cent, or 13. The key read-across from the 1970s is when investors start to believe that inflation will stay high for longer, equity markets begin to focus on real instead of nominal earnings-per-share rate, which for this year is likely to be negative, SocGen said. The main US share benchmarks rose 2 per cent overnight on the possibility the economic outlook might not be as dire as thought during trade last week when the S&P 500 logged its biggest weekly percentage decline since March 2020. But the lift in sentiment did not last long with S&P 500 and Nasdaq futures ESc1, both down nearly 1 per cent today while EUROSTOXX 50 futures lost 1.27.3 per cent and FTSE futures FFIc1 shed 0. Wilson at Morgan Stanley, one of Wall Street’s most vocal bears and who correctly predicted the latest market selloff, agrees that the S&P 500 needs to drop another 15% to 20% to about 3,000 points for the market to fully reflect the scale of economic contraction.9 per cent. Wall Street stocks bounced overnight, starting a holiday-shortened week on a positive note as investors debated whether the rally could signify a market comeback.9% to HK$18.

“I think that this recent post-holiday bear market rally is a reflection of the uncertainty that investors have regarding whether we have seen the peak of inflation and Fed hawkishness or not — I think we’re close,” said Invesco global market strategist for Asia Pacific David Chao. “Even though I suspect global equity markets could end higher at the end of the year than where we are today, it’s conceivable to expect continued market volatility until it becomes clear that the Fed is not going to force the US economy into contraction in order to tamp down persistent levels of inflation.2 per cent at 30,530. Wilson said that should a full-blown recession become the market’s base case, the S&P 500 could bottom near to 2,900 index points -- more than 21% below its last close.” Chinese blue chips lost 0.44 per cent, Hong Kong’s Hang Seng Index fell 1. The broad-based S&P 500 jumped 2.24 per cent and South Korea’s KOSPI was down 1. Berenberg strategists also said on Tuesday it was too early to call a bottom for equities with earnings downgrades just beginning amid expectations of a recession. “I think it is quite reasonable for Tencent to optimise its investment portfolio and book some profits,” said Redmond Wong, market strategist at Saxo Capital Markets.

82 per cent.5 per cent. US Federal Reserve chair Jerome Powell is due to start his testimony to Congress today with investors looking for further clues about whether another 75-basis-point rate hike is on the cards in July. Economists polled by Reuters expect the Fed will deliver a 75-basis-point interest rate hike next month, followed by a half-percentage-point rise in September, and won’t scale back to quarter-percentage-point moves until November at the earliest. The dollar fetched ¥136. Most other global central banks are in a similar situation, apart from the Bank of Japan, which last week pledged to maintain its policy of ultra-low interest rates. The gap between low interest rates in Japan and rising US rates has weighed on the yen JPY=, which hit a new 24-year low of 136.40) in early Asian trade, against ¥136. “For the stocks that surged lately, I’m very cautious.

71 per dollar in early trading, before drifting firmer to 136.25. The Japanese currency fell to the 136 level in London trading in anticipation of wider interest rate gaps between the two countries, even as the dollar eased against other major peers ahead of the Fed chair’s congressional testimony. Minutes from the Bank of Japan’s April policy meeting released today showed the central bank’s concerns over the impact the plummeting currency could have on the country’s business environment. Other currency moves were more muted today, with the dollar index, which tracks the greenback against six peers, a touch firmer at 104. Among major shares in Tokyo, Toyota rallied 1.62.

The yield on benchmark US 10-year Treasuries was fairly steady at 3.99 per cent at ¥1,122.2617 per cent. Oil prices fell with US President Joe Biden expected today to call for a temporary suspension of the 18.91 per cent at ¥21,125 and construction machine maker Komatsu was up 0.4-cents a gallon federal tax on gasoline, a source briefed on the plan told Reuters. Brent dropped 3. — AFP Advertisement.

37 per cent to US$110.79 (RM487.90) a barrel, while US crude fell 3.71 per cent to US$105.46.

Spot gold dropped 0.32 per cent, trading at US$1,826.72 an ounce. Bitcoin lost 6.54 per cent from its Tuesday high, trading at US$20,288 after falling as low as US$17,592 last week.

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