Dollar reigns as investors fear recession pain

* Oil, Europe equity futures steady after steep drop

* Euro huddles at 20-yr low; sterling squeezed

* China stocks slip on fresh Shanghai virus outbreak

By Sam Byford and Tom Westbrook

TOKYO/SINGAPORE, July 6 (Reuters) - Asian stocks fell and the dollar stood by a two-decade high on the euro on Wednesday as investors' fears deepened that the continent is leading the world into recession, while oil and European equity futures made a wobbly attempt to steady.

Brent crude futures LCOc1 have slid this month on worries that a global slowdown will sap demand. Prices slumped 9.5% to a 2-1/2 month low of $101.10 on Tuesday, before bouncing slightly to $103.86 a barrel in the Asia session on Wednesday.

MSCI's index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell 1%, led by a 2% drop for Taiwan's benchmark index .TWII - heavy with growth-sensitive computer chip makers - which hit an 18-month low. Japan's Nikkei .N225 fell 1.1%.

S&P 500 futures ESc1 fell 0.1% while FTSE futures FFIc1 and EuroSTOXX 50 futures STXEc1 rose 1% after heavy Tuesday selling.

News has been relentlessly negative, with talk of gas rationing in Europe, a political crisis in Britain and a fresh flare up of COVID-19 cases prompting fresh restrictions in Shanghai.

In the United States, the two-year Treasury yield has dropped below the 10-year yield US2US10=TWEB , a reliable market signal of a recession capping growth in the medium term.

"The drumbeat is getting louder and louder about recession risk," said Jason Teh, chief investment officer at Vertium Asset Management in Sydney.

"Right now defence is the name of the game. It's the best strategy right now, because in a recession a lot of things can fall out of bed."

Accordingly ,the dollar has been king and a safety bid has even returned to the beaten-down Japanese yen. The U.S. dollar index =USD hit a 20-year high of 106.79 on Tuesday, hoisted by a tumbling euro.

The index hovered at 106.440 on Wednesday and the yen JPY=EBS rose about 0.4% to 135.39 per dollar.

The euro EUR=EBS huddled at $1.0266 after dropping as far as $1.0236 on Tuesday and traders expect little respite. Selling could follow if Eurozone retail sales figures due at 0900 GMT disappoint expectations for a 0.4% monthly rise in May.

"There are no important support levels for EUR/USD until $1," said Commonwealth Bank of Australia strategist Kristina Clifton.

Sterling GBP=D3 was near a two-year low at $1.1944 after the resignation of two of Britain's top government ministers put Prime Minster Boris Johnson's leadership under new pressure.


Uncertainty over Europe's gas supply is leading the latest round of worries, and has sent prices rocketing against slumps in other commodities on growth worries.

Benchmark Dutch gas prices TRNLTTFMc1 have doubled since the middle of June.

Some investors worry that flow along the Nord Stream pipeline, which brings gas from Russia to Germany, might not resume after a ten-day maintenance shutdown from July 11 and that winter supply shortages will then prompt rationing and a sharp drop in economic activity.

The backdrop is rising interest rates.

The Federal Reserve publishes minutes later on Wednesday from the June meeting, where it announced the sharpest hike in the U.S. benchmark interest rate in nearly 30 years. It is likely to foreshadow more hikes as Fed officials have said their top priority is fighting inflation, even at the cost of growth.

"The probability of a soft landing had massively declined," August Hatecke, the co-head of UBS Wealth Management Asia Pacific told investors at a conference in Singapore. The growth-sensitive Australian dollar AUD=D3 was stuck near a two-year low at $0.6805.

Spot gold XAU= was last steady at $1,771 an ounce after sliding on the strong dollar overnight. The safe haven is down about 3% this year, less than the steep losses for equities and bonds.

Treasuries were steady in Asia with the 10-year yield US10YT=RR at 2.8327% and the two-year yield US2YT=RR at 2.8385%. Bitcoin BTC=BTSP , which has been demolished in the flight from risky assets, sat at $20,115.

World FX rates YTD Link
Global asset performance Link

Reporting by Sam Byford; Editing by Sam Holmes and Kim

Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.

Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.

Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.

Nous utilisons des cookies pour vous donner la meilleure expérience possible de notre site internet. En savoir plus ou modifier vos paramètres de cookies.

Avertissement sur les risques : votre capital est à risque. Les produits à effet de levier ne sont pas recommandés pour tous. Veuillez consulter notre Divulgation des risques