Major stock indexes in Japan and South Korea fell, dragging down Asian stocks. Futures for the S&P 500 and Nasdaq 100 also fell.
Chinese stocks fell on March 10 as concerns about US economic growth increased, putting pressure on investors, while China's inflation fell below zero for the first time in a year.
Major stock indexes in Japan and South Korea fell, dragging down Asian stocks. S&P 500 futures, a financial contract that allows investors to commit to buying or selling the S&P 500 index at a future date at a pre-agreed price, fell as much as 1.1% in early trading, while Nasdaq 100 futures, a financial contract that allows investors to buy or sell the Nasdaq 100 index at a future date at a pre-agreed price, fell more sharply. Treasury yields fell across all maturities.
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| Major stock indexes in Japan and South Korea both fell, dragging down Asian stock indexes. Illustrative photo |
Oil prices fell on March 10 after posting a seventh consecutive weekly loss, and Bitcoin continued to decline for a fifth trading session. The US dollar index fell for a sixth straight day, its longest losing streak in a year.
Factors such as the economy and geopolitical events have created a volatile trading week. Bond traders are betting that the US economy will stagnate and that cuts to the federal workforce could continue to limit growth. US President Donald Trump has also said that the economy is going through a transition period.
Traders have been aggressively buying short-term Treasuries, sending yields on two-year notes sharply lower since mid-February, on expectations that the Federal Reserve will cut interest rates again as early as May to stave off a recession. The shift marks a major turnaround for the Treasury market, which has been dominated by the surprise recovery of the U.S. economy in recent years, despite signs of slowing global growth.
San Francisco Federal Reserve Bank President Mary Daly said that increased uncertainty among businesses could dampen demand in the U.S. economy, but that this did not necessitate a change in interest rates. Fed Chairman Jerome Powell also acknowledged the increased uncertainty about the U.S. economic outlook. He also said he expected progress toward the 2% inflation target to continue.
U.S. job growth was steady last month, but the unemployment rate rose, creating a mixed picture for the labor market. Nonfarm payrolls (jobs created in the U.S. economy, excluding jobs in agriculture, housing, nonprofit, and household jobs) increased by 151,000 in February, after a downward revision from the previous month. The unemployment rate rose to 4.1%.
“ Recent Chinese inflation data has not helped to boost market confidence ,” said Tim Waterer, market analyst at financial brokerage and trading firm KCM Trade. “ However, the market may be hoping that this will prompt the central bank to introduce new stimulus measures ,” he said.
Although the S&P 500 recovered late on March 7, it still ended its worst week since September. The index is down nearly 7% from its February record high. Big tech stocks have been hit the hardest, with the Nasdaq 100 approaching a 10% drop from its recent high, and if that trend continues, the index will officially enter a technical correction.
| In Asia, China's consumer inflation slowed more than expected, falling below zero for the first time in 13 months as deflationary pressures continued to mount in the economy. Investors are now looking for signs that government stimulus measures are starting to have a positive impact, boosting domestic demand. |
Source: https://congthuong.vn/chung-khoan-chau-a-lao-doc-hop-dong-tuong-lai-giam-manh-377620.html
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