{"id":1641744,"date":"2022-09-15T11:35:32","date_gmt":"2022-09-15T15:35:32","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1641744"},"modified":"2022-09-15T11:35:54","modified_gmt":"2022-09-15T15:35:54","slug":"european-stocks-fend-of-rate-risks-yen-droops-again","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/european-stocks-fend-of-rate-risks-yen-droops-again\/","title":{"rendered":"European stocks fend of rate risks, yen droops again"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feuropean-stocks-fend-of-rate-risks-yen-droops-again%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1641744&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Marc Jones<\/p>\n<p>LONDON (Reuters) \u2013     Stock markets were sluggish and the dollar and bond yields shuffled higher on Thursday as the likelihood of a further jump in global borrowing costs, including a possible 100 basis point U.S. rate hike next week, kept the bears on the prowl.<\/p>\n<p>Europe\u2019s main bourses made a positive start after two days in the red [.EU], but the Japanese yen \u2013 pummelled to a 24-year low this month \u2013 drooped again as Tokyo posted a record trade deficit overnight.<\/p>\n<p>It was a big day too for the crypto markets with a major software upgrade to the Ethereum blockchain dubbed the \u201cMerge\u201d taking place. <\/p>\n<p>China\u2019s central bank had refrained from providing more support overnight although there had been some welcome signs of support elsewhere for the country\u2019s battered property market.<\/p>\n<p>The broader focus however remained squarely on the risk of rising interest rates and painfully high energy prices causing recessions. <\/p>\n<p>Credit rating firm Fitch became the latest to slash its world economy forecasts while bond markets were watching the German yield curve flatten markedly \u2013 another classic recession indicator.<\/p>\n<p>\u201cWe\u2019ve had something of a perfect storm for the global economy in recent months,\u201d Fitch Chief Economist Brian Coulton said, blaming \u201cthe gas crisis in Europe, a sharp acceleration in interest rate hikes and a deepening property slump in China\u201d. <\/p>\n<p>The dollar, which has soared this year amid the jump in U.S. interest rates and global scramble for safety, was showing its strength again. <\/p>\n<p>Expectations that the Federal Reserve will raise rates another 75-100 basis points next week pushed the greenback back up 0.3% against the yen, after the yen jumped on Wednesday when Bank of Japan calls to FX desks triggered intervention talk.<\/p>\n<p>The euro was again back below parity against the dollar. It was down 0.15% at $0.9964 and not too far from a 20-year low of $0.9864 hit last week. Britain\u2019s pound, which has also been hammered over the last month, likewise was 0.25% softer at $1.15115. [\/FRX]\n<p>\u201cThe (Bank of Japan) steps were in reality the last efforts to halt JPY depreciation before actual intervention,\u201d MUFG\u2019s European global markets research head Derek Halpenny said. <\/p>\n<p>\u201cBut it is also highly likely that there is still a deep reluctance on the part of the authorities to intervene,\u201d he added, on the view that such action might not be successful in the current environment.  <\/p>\n<p>Japan has not intervened in forex markets since 2011 and back then it was to restrain an overly strong yen.  <\/p>\n<p>Yen\u2019s biggest drop in decades https:\/\/fingfx.thomsonreuters.com\/gfx\/mkt\/movaneowopa\/Pasted%20image%201663232168526.png<\/p>\n<p>FLAT AND FLATTENING<\/p>\n<p>Tokyo isn\u2019t the only Asian capital concerned about currency weakness. South Korea\u2019s won bounced off a near 13-year low overnight as it appeared that its authorities had been dishing out verbal FX intervention again.<\/p>\n<p>Among the main stock markets, MSCI\u2019s broadest index of Asia-Pacific shares outside Japan turned during the session to finish down 0.2%. The Nikkei rose 0.2% though, while the main Hong Kong property index surged over 4% after reports that some Chinese developers were finally being allowed to slash prices.<\/p>\n<p>The world\u2019s second-largest economy narrowly avoided contracting in the second quarter as widespread COVID-19 lockdowns and the slumping property sector badly damaged consumer and business confidence.<\/p>\n<p>With few signs China will significantly ease zero-COVID soon, some analysts expect the economy to grow by just 3% this year, which would be the slowest since 1976, excluding the 2.2% expansion during the initial COVID hit in 2020.<\/p>\n<p>\u201cEquity markets are presently in no-man\u2019s land,\u201d said Sean Darby, global equity strategist at Jefferies in Hong Kong.<\/p>\n<p>\u201cBetter macro news to support earnings is discounted as (there is) the need for further tightening to quash growth \u2013 while CPI prints are not declining fast enough,\u201d he said.<\/p>\n<p>S&#038;P 500 futures, Dow and Nasdaq futures were all broadly flat, pointing to a slow day on Wall Street later. [.N]\n<p>Fed funds futures, which were dumped along with stocks after Tuesday\u2019s stubbornly hot U.S. inflation reading but were helped by lower producer price figures on Thursday, imply a 30% chance of a 100 basis point rate hike next week. They have the benchmark U.S. interest rate as high as 4.3% by February.<\/p>\n<p>Two-year U.S. yields, which track near-term rate expectations, edged up to 3.029%, bringing the rise for the week so far to 23 basis points in a seventh straight weekly gain.<\/p>\n<p>European moves saw the 2-year German yield rise 2.5 bps to 1.435% leaving it just off its highest since July 2011.. Germany\u2019s 10-year yield, the euro zone\u2019s benchmark, rose 4.5 basis points (bps) to 1.746%. <\/p>\n<p>ING analysts said that comments by European Central Bank chief economist Philip Lane on Wednesday had endorsed the hawks\u2019 narrative. It \u201cis another clue that the central bank has experienced a significant shift in its reaction function,\u201d they wrote.<\/p>\n<p>Later in the day European trade data is due and Chinese President Xi Jinping meets Russia\u2019s Vladimir Putin in Uzbekistan.<\/p>\n<p>In oil markets, Brent crude futures dipped 24 cents to $93.86 a barrel. Spot gold dropped 0.4% to $1,689 an ounce, having steadily slipped as the dollar and U.S. yields have gone up. [O\/R][GOL\/]\n<p> (Additional reporting by Stefano Rebaudo in Milan, Tom Westbrook in Singapore and Wayne Cole in Sydney)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2749091\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8E0E2-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8E0E2-VIEWIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2749092\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8E02M-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8E02M-VIEWIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2749093\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8E08R-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8E08R-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Marc Jones LONDON (Reuters) \u2013 Stock markets were sluggish and the dollar and bond yields shuffled higher on Thursday as the likelihood of a further jump in global borrowing<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1641744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1641744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1641744"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1641744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1641744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1641744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1641744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}