Futures Crash, Stocks At 2022 Lows; Yields, Dollar Explode As UK Stimulus Plan Sparks Global Market Panic

Market Snapshot

• S&P 500 futures down 0.5% to 3,752.25
• MXAP down 1.2% to 145.59
• MXAPJ down 1.6% to 470.98
• Nikkei down 0.6% to 27,153.83
• Topix down 0.2% to 1,916.12
• Hang Seng Index down 1.2% to 17,933.27
• Shanghai Composite down 0.7% to 3,088.37
• Sensex down 1.6% to 58,191.14
• Australia S&P/ASX 200 down 1.9% to 6,574.73
• Kospi down 1.8% to 2,290.00
• STOXX Europe 600 down 0.9% to 396.36
• German 10Y yield little changed at 1.93%
• Euro down 0.8% to $0.9756
• Brent Futures down 1.9% to $88.75/bbl
• Gold spot down 0.4% to $1,664.46
• U.S. Dollar Index up 0.60% to 112.03

Top Overnight News from Bloomberg

• BofA Says Cash is King as Investor Pessimism Hits 2008-Era High
• Goldman Slashes S&P 500 Target Citing Higher Fed Rates Path
• UK Sets Out Biggest Tax Cuts Since 1988 to Boost Economic Growth
• Era of Inflation Has Ended — for Asset Prices on Wall Street
• Oil Set for Fourth Weekly Loss With Rate Hikes Darkening Outlook
• Goldman to BofA Throw in the Towel on a Year-End Rally in Europe
• Treasury Selloff Drives SOFR Spread Toward Record One-Day Drop
• Wall Street’s Top Banks Are Backing Oil to Stage a Recovery
• Nasdaq Increases Scrutiny of Small-Cap IPOs After Big Swings
• Japan Has a Pile of Dollars It Can Tap Before Selling Treasuries
• Chinese Money Pours Into Offshore Debt After Rare Yield Reversal
• China Compares Taiwan Independence Push to Charging Rhino
• China’s Most Locked-Down City Shows Perils of Endless Covid Zero
• Crypto Outperforms Stocks for a Change as Correlation Breaks
• Raytheon Beats Lockheed, Boeing on $1 Billion Hypersonic Job
• Zelle Emerges as Lawmakers’ Surprise Foe at Bank Hearings
• Alex Jones Renews ‘Deep State’ Claim at Defamation Trial
• It’s Every Nation for Itself as Dollar Batters Global Currencies
• Nikola Investor Lost $160,000 on Milton’s Hype, He Tells Jury
• FedEx to Cut Costs, Hike Rates in Battle Against Flagging Demand
• With Shelters Overflowing, NYC to Put Up Tents for Migrants
• Senior-Care Provider Cano Health Said to Weigh Sale
• Banks Dust Off Lockdown Plans to Beat Possible Power Blackouts

A more detailed look at global markets courtesy of Newsquawk

Asian stocks were negative in the aftermath of the rush of global central bank rate hikes during ‘Super Thursday’ and with risk appetite not helped by the absence of participants in Japan for the Autumnal Equinox Day. ASX 200 was heavily pressured on return from yesterday’s national day of mourning closure and took its first opportunity to react to the hawkish FOMC with the tech and consumer-related sectors the worst hit. KOSPI declined with the recent flurry of central bank rate hikes adding to the arguments for the BoK to continue on its hiking cycle as South Korean officials look to avert one-sided currency moves. Hang Seng and Shanghai Comp slightly deteriorated throughout the session as the early support from reports regarding Hong Kong and Macau potentially easing restrictions for arrivals gradually waned, while US audit watchdog officials recently arrived in Hong Kong for audit inspections as firms seek to avoid delisting from US exchanges.

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