X

This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.



Please create a password or click to receive a login link.


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

China tech lifts Asian stocks from pre-Fed torpor: Mark...

Business Maverick

Business Maverick

China tech lifts Asian stocks from pre-Fed torpor: Markets wrap

Stocks in Asia received a fillip on Tuesday from China’s technology sector, helping to alleviate some of the caution in global markets ahead of a hotly anticipated Federal Reserve interest-rate hike.

An Asian share index pushed higher, with Alibaba Group Holding leading the advance in China tech. The e-commerce giant plans to seek a primary listing in Hong Kong, paving the way for investors in China to directly buy its shares.

S&P 500 and Nasdaq 100 futures were in the red but off the day’s lows. Sentiment had taken a knock from a late-day slide in retailer Walmart on a disappointing profit outlook. Its projection could fan worries about corporate prospects as the US flirts with a recession amid tightening monetary settings.

The 10-year US Treasury yield was little changed, oscillating around 2.78%. Traders are braced for a wave of debt sales and a widely expected 75 basis points Fed rate rise on Wednesday, part of a campaign to tackle inflation.

A dollar gauge is near the lowest level since early July. Commodities rallied, taking oil past $98 a barrel. But Bitcoin tumbled to the brink of $21,000.

Markets are bracing not just for the Fed and any policy signals from Chair Jerome Powell, but also corporate reports from the likes of Apple and Alphabet. Other risks include ongoing disruptions to European gas supplies from Russia as well as China’s Covid curbs and property woes.

For Katerina Simonetti, an adviser at Morgan Stanley Private Wealth Management, the litany of risks exposes the vulnerability of the 6% rebound in global shares from June lows.

“This is most likely a bear market rally and there are significant risks still facing this market,” she said on Bloomberg Television. “We’re probably going to be seeing a lot of choppiness and potentially some further declines in the market before the year end.”

In contrast, Ed Yardeni, president of Yardeni Research, argues the S&P 500’s plunge last month to a 3,666.77 low likely marked the trough of the 2022 equity rout. He cites the resilience in corporate earnings and the still-healthy outlook for consumers and businesses even as the US economy slows.

Musk, Tesla and Twitter are this week’s theme of the MLIV Pulse survey. Also share your views on the S&P 500’s biggest stocks. Click here to get involved anonymously. BM

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted