Global stocks tumbled on Monday on worries about rising global interest rates and the return of Chinese investors after a week-long holiday to tighter restrictions on US technology.
The United States has imposed export restrictions on certain types of chips used in artificial intelligence and supercomputers. It has tightened rules on the sale of semiconductor equipment from Chinese companies. This standoff between Washington and Beijing increases geopolitical risks for markets from Taiwan to Ukraine.
Bond yields in Australia and New Zealand rose on Friday’s rise in Treasury yields as US labor market data confirms forecasts that the Federal Reserve will raise rates by 75 basis points next month.
The dollar fluctuated against its G-10 counterparts while China set the yuan’s base rate higher than expected.
Oil prices eased as risks to energy demand from monetary tightening halted a rally fueled by OPEC+’s decision to cut supplies. Gold continued its decline in Asia after falling below $1 700 an ounce last week.
Investors are still pondering New York Fed President John Williams, who said last week that rates should rise to around 4.5% over time, but the pace and ultimate peak will depend on the state of the economy.
Market participants are now waiting for US inflation data this week after higher data in August tempered expectations for a slowdown.
S&P 500 futures were down 0.6% as of 6:50 am in London. On Friday, the S&P 500 fell 2.8%.
Nasdaq 100 futures fell 0.6%. The Nasdaq 100 fell 3.9%.
The Hang Seng index fell 2.9%.
The Shanghai Composite index fell 0.8%.
Euro Stoxx 50 futures fell 1.1%
The S&P ASX fell 1.4%.
The euro fell 0.2% to $0.9723.
The Japanese yen fell 0.1% to 145.40 per dollar.
The offshore yuan rose 0.2% to 7.1217 per dollar.
The British pound fell 0.2% to $1.1069.
Bitcoin fell 0.4% to $19,401.75.
Ether fell 0.2% to $1318.23.
The 10-year US Treasury yield rose 6 basis points to 3.88% on Friday.
The yield on 10-year Australian bonds rose 2 basis points to 3.87%.
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