Stocks slide, dollar shines as recession fears deepen



By Sam Byford

TOKYO, July 6 (Reuters) - Asian stocks slipped 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 attempted to steady after a slide.

Brent crude futures LCOc1 bounced 1.4% in morning trade to $104.18 a barrel, nursing its wounds after a 9.5% drop to a 2-1/2 month low on Tuesday with worries that a global growth slowdown is going to sap demand.

MSCI's index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell 0.6%. Japan's Nikkei .N225 fell 0.88%, on course for its first loss of the week. S&P 500 futures ESc1 fell 0.2%, though Euro STOXX 50 futures STXEc1 bounced 1.8%.

Hong Kong's Hang Seng index .HSI was down 0.42% while Chinese blue chips .CSI300 fell 0.7%, dragged by worries about new COVID-19 cases in Shanghai risking fresh restrictions.

Overnight Europe's STOXX 600 index .STOXX dropped 2% and the euro EUR=EBS plunged more than 1.5% to $1.0236, its lowest since late 2002 as talk of gas rationing spooked traders.

"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."

Uncertainty over Europe's gas supply has set prices rocketing. Benchmark Dutch gas prices TRNLTTFMc1 have doubled since the middle of June and rose 7% overnight to a four-month high.

Year-ahead baseload power in Germany TRDEBYZ3 hit a record high. Investors are nervous about continuity of supply after the Nord Stream pipeline, which carries Russian gas to Germany, shuts for ten days for maintenance from July 11.

In Tokyo, shares of commodities trading firms Mitsui & Co 8031.T and Mitsubishi Corp 8058.T dropped more than 5% after former Russian president Dmitry Medvedev threatened oil and gas supply cuts to Japan.

Sterling GBP=D3 was also pinned by a two-year low and not helped by the latest political crisis to hit Prime Minister Boris Johnson's government, with the resignation of his finance and health secretaries questioning his longevity as leader.

After touching $1.1899 overnight the currency steadied at $1.1964 in Asia.

A change in leader, or speculation about it, could lend support but it is weighed heavily by an economic outlook that a new leader is unlikely to shift.

"The UK is in danger of being the slowest-growing major advanced economy next year, with the highest inflation rate and the biggest current account deficit," said Societe Generale strategist Kit Juckes. "That's quite a collection, and it represents a clear threat to the pound."

Elsewhere the dollar also stood tall, holding the risk-sensitive Antipodean currencies near two-year lows and dunking spot gold prices to their lowest this year. The Aussie AUD=D3 was last huddled at $0.6810 having slid 1.0% overnight to a two-year trough of $0.6762.

Spot gold XAU= was last steady at $1,771 an ounce after its overnight fall. Safe-haven gold is down about 3% this year, less than the steep losses for equities and bonds.

Investors now await the release of U.S. payroll data on Friday for further signs of whether the economy may fall into a recession.

"A strong payrolls figure may temper recession fears briefly, though it will also likely drive up two-year yields and probably won't be regarded as unambiguously positive by the equity investment community," ING's Robert Carnell and Iris Pang wrote in a note this morning.

Benchmark U.S. treasury yields were flat on Wednesday, with the 10-year note US10YT=RR at 2.8218%.

Bitcoin fell back below the key $20,000 waterline, falling 2.77% to trade at $19,855.14.



World FX rates YTD Link
Global asset performance Link



Reporting by Sam Byford; Editing by Sam Holmes


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