Chinese equities are back in vogue. A Bloomberg survey of 19 fund managers and analysts predicts that benchmark indexes in China and Hong Kong will post gains of at least 4% by year-end, outperforming global peers. About 70% of those polled plan to maintain or bolster holdings of shares in the next three months. Investors are also piling into the largest US-listed ETF tracking Chinese stocks, which lured $333 million on Wednesday.
The nearly 60% drawdown in Bitcoin since the end of March is the largest since the third quarter of 2011. The currency fell to around $19,000, and crypto stocks dropped; tellingly, the only digital-asset investment vehicle not to shrink in June was a fund betting against Bitcoin.
Michael Burry, the founder of Scion Asset Management who was made famous by Christian Bale in the movie “The Big Short,” said on Twitter that the first half declines in equity markets this year were “multiple compression” and following this will be earnings compression.
President Xi Jinping was expected to swear in Hong Kong’s new, security-minded leader in a ceremony to mark 25 years of Chinese rule, after declaring that the Asian financial hub had been “reborn” in the wake of a crackdown on the pro-democracy opposition.
The IMF’s latest data on global FX reserves show the yen’s unshakeable status (for now) as a reserve currency. FX reserve managers sold euros, dollars and pounds in the first quarter and bought more yen than any other currencies reported in the IMF’s latest data released Thursday.
S&P 500 futures have kicked off July in the same bearish tone that has prevailed throughout 2022. Traders looking for stocks to slide further in the third quarter will be encouraged by the ongoing pattern of modest rallies followed by longer declines.
Ten-Year Treasury Yield Falls Below 3% as Recession Fears Mount. Treasuries began the second half of the year on the front foot Friday as concerns continued to mount that Federal Reserve rate hikes will lead to a recession.
President Vladimir Putin signed a decree to transfer rights to the Sakhalin-2 natural gas project to a new Russian company, a move that could force foreign owners including Shell Plc to abandon their investment in the facility.
Global companies have pulled more debt sales in the past six months than in all of 2020. More than 70 deals have been postponed or canceled so far in 2022, according to data compiled by Bloomberg. That’s compared with 37 during the full year of 2021, and 67 in 2020.
After attracting crypto firms, property investors and Russian billionaires, Dubai is drawing a new crowd: hedge fund managers. Izzy Englander’s Millennium Management has grown its staff in the Dubai International Financial Centre to about 30 since securing a license in 2020. Michael Gelband's ExodusPoint Capital Management, one of the largest multi-strategy hedge funds in the world, registered in the DIFC in June, according to a filing.
Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.
Treasury holders reeling from the most brutal first half on record are starting to bet that a worsening economy will deliver some relief from the relentless selloff even as they brace for the risk of more weakness.
The dollar sealed its best quarter since 2016 this week while S&P 500 suffered the worst first half in more than five decades. Leading central bankers warned that high-inflation regime may be here to stay -- a possible paradigm shift that may warrant even more aggressive policy response than expected. Global bond yields tumbled on mounting recession worry and base metals capped their worst quarterly performance since 2008.
Argentine President Alberto Fernandez tapped Silvina Batakis as the country’s new economy minister Sunday after her predecessor resigned Saturday, deepening a political crisis boiling over into the economy and markets.
There’s more downside ahead for Taiwan stocks, if they are to mirror the underperformance seen when the Internet bubble burst in the early 2000s. The Taiex index is already one of the worst performers in Asia this year, with its tech component driving the pain.
The worst US stock selloff in half a century may not be over, some investors say, including Michael Wilson at Morgan Stanley. Most MLIV Pulse survey respondents think earnings forecasts will be slashed. Treasury holders are starting to bet a worsening economy will deliver some relief. Any recession may be long but modest, economists say, albeit not as bad as the GFC or the '80s. EMs are now ready for a US recession, and may even be able to lure investors.
Major banks are ratcheting up funds for the global commodities trade as Russia’s war in Ukraine drives up prices for everything from crude oil to corn.
Asian equities face another road block to a sustained rebound, with new orders on a downward track. The latest JPMorgan global PMI data shows the new orders component has dropped past the level seen in January 2020, just before Covid collapsed the index.
Germany’s foreign trade balance just came in at -1 billion euro. Which is the first negative print for that number since 1991.
The European Central Bank will “tilt” its corporate bond holdings toward issuers that demonstrate a “better climate performance,” marking its most significant shift yet to weave environmental considerations into monetary policy.