Asian stocks and US futures lose; The market analyzes the minutes of the Fed and the Chinese economy

Bloomberg – Asian stocks and US stock futures It fell on Thursday as investors weighed down the poor Chinese economic outlook and after the Federal Reserve’s meeting minutes They noted that the central bank is facing a delicate balancing act to reduce inflation and avoid stagnation.

stock markets Japan, South Korea and Australia lost. US contracts lost after stocks fell on Wall Street for the first time in four days, Including a drop of more than 1% in the Nasdaq 100 tech index.

Federal Reserve officials saw a necessity in the end slow rate increase Interest rates and warned of excessive tightening that could hurt the economy, but also pointed to the risk that inflationary pressures could take hold.

Sovereign bond yields rose in Australia and New Zealand. Treasuries continue to fall amid the start of a global bond slump By rising inflation in the UK. The dollar index has stabilized.

Trade-offs linked to Fed policy meeting dates They cited higher odds for a half-point increase next month instead of 75 basis points. Expectations of a slowdown in policy tightening and a shift to cuts later next year have already contributed to global stocks rallying 12% from their June lows. The question is whether this is overly optimistic. The bleakest scenario is one of persistent price pressures that imposes constrained borrowing costs even as the economy contracts.

“We’re still expecting that There will be a lot of fluctuations in interest rates in the second half of the year, Especially once markets start acknowledging the fact that we won’t necessarily see cuts in 2023 priced in, Mira Pandit, global market analyst at JPMorgan Asset Management, said on Bloomberg TV.

On the other hand, Tencent Holdings Ltd. It was the first drop in revenue after online advertising sales fell to a record low. The most valuable company in China has cut 5,000 jobs, or roughly 5% of its workforce.

earnings report Confirmed slowdown in the second largest economy in the worldwhich have been hampered by the real estate crisis, Covid-19 restrictions and a recently tight energy supply. The economists at Goldman Sachs Group Inc. Their forecast for full-year China expansion to 3% from 3.3%.

Oil is down while gold is up and bitcoin hasn’t changed much.

Some of the main events to watch this week:

• Unemployment in Australia, Thursday
• Existing US Home Sales, Initial Jobless Claims, Conference Board Leading Indicator, Thursday
• Esther George and Neil Kashkari of the Federal Reserve spoke at separate events Thursday

Some of the main movements in the markets:

• S&P 500 futures were down 0.2% at 9:08 am in Tokyo. The S&P 500 fell 0.7%.
• Nasdaq 100 futures were down 0.3%. The Nasdaq 100 is down 1.2%.
• Japan’s Topix lost 0.9%
• South Korea’s Kospi Index fell 0.9%
• Australia’s S&P/ASX 200 is down 0.2%.
• Hang Seng futures rose 0.2%.

Read more at Bloomberg.com