· Dow futures drop 200 points after the index’s worst week since October
Stock futures declined early Monday morning after the Dow posted its worst week since October.
Futures on the Dow Jones Industrial Average dropped 207 points. S&P 500 futures and Nasdaq-100 futures both also traded in negative territory.
U.S. stocks fell on Friday as investors digested new economic projections from the Federal Reserve and worried rate hikes could come sooner than expected.
· Asian stocks fall as hawkish Fed reverberates; Treasury yields slide
Asian stocks dropped on Monday after last week’s surprise hawkish shift by the U.S. Federal Reserve reduced the allure of riskier assets, while the Treasury yield curve flattened further with 30-year yields dropping below 2%.
Shares of banks, energy firms and other companies that tend to be sensitive to the economy’s fluctuations have fallen sharply following the Fed’s meeting on Wednesday, when the central bank caught investors off guard by anticipating two quarter-percentage-point rate increases in 2023.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.36%.
· Japanese shares follow Wall Street's retreat on Fed's official comments
Japanese shares posted their biggest drop in four months on Monday, tracking Wall Street’s sell-off last week, triggered by fresh comments from a Federal Reserve official that the U.S. central bank might raise interest rates sooner than expected.
Heavy selling in Japan was seen across almost sectors, with all the Tokyo Stock Exchange’s 33 industry sub-indexes, except airlines, trading lower.
The Nikkei share average lost 3.29% in its biggest percentage fall since Feb. 26, to close at 28,010.93, after touching its lowest in a month. The broader Topix slipped 2.42% to 1,899.45, also its biggest decline in four months.
Following a surprise projections on earlier than expected rate hikes by U.S. central bank on Wednesday, St. Louis Fed President James Bullard further fuelled the sell-off on Friday by saying the shift toward faster policy tightening was a “natural” response to economic growth.
· China, Hong Kong stocks fall after Fed's surprise turn
China and Hong Kong stocks fell on Monday, tracking other Asian markets, as investors continued to ponder the implications of the U.S. Federal Reserve’s surprise hawkish shift last week.
The CSI300 index fell 0.6% to 5,073.36 points at the end of the morning session, while the Shanghai Composite Index dipped 0.2% to 3,517.17 points.
The Hang Seng index dropped 1.4% to 28,413.42 points, while the Hong Kong China Enterprises Index fell 1.1% to 10,533.91.
· Indian shares dragged by financial stocks; PNB Housing Finance slides
Losses in heavyweight financial stocks pulled Indian shares lower on Monday, while housing loans provider PNB Housing Finance dropped after a regulatory hold on a proposed capital raise.
By 0458 GMT, the blue-chip NSE Nifty 50 index was down 0.43% at 15,615.85, while the benchmark S&P BSE Sensex had lost 0.39% to 52,137.95.
· European stocks recover losses amid choppy start to the week; Morrisons up 31%
European stocks were choppy on Monday morning, following jitters in global markets over the more hawkish tone from the U.S. Federal Reserve last week.
The pan-European Stoxx 600 hovered just above the flatline around an hour into trading, having lost more than 0.8% in early deals. Basic resources slid 0.6% while chemicals added 0.8%.
In terms of individual share price movement in Europe, British supermarket chain Morrisons surged more than 31% after rebuffing a proposed £5.52 billion ($7.62 billion) takeover from private equity firm Clayton, Dubilier & Rice on the grounds that it “significantly undervalued the company and its potential.” The rejection prompted speculation that CD&R will be forced to raise its offer.
· Cyclical assets in these markets will benefit from the economic recovery: JPMorgan
JPMorgan’s Kerry Craig tells “Squawk Box Asia” which markets provide good opportunities for investors as economic growth gains traction around the world.
Reference: Reuters, CNBC
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