MARKET UPDATE

Japan flags yen’s ‘somewhat rapid’ falls to G7

Japan explained to its G7 counterparts the yen’s recent “somewhat rapid” declines, finance minister Shunichi Suzuki said on Thursday, underscoring Tokyo’s growing alarm over the currency’s sharp fall to a two-decade low against the dollar.

Suzuki did not comment on how the G7 finance leaders responded, saying only that the meeting in Washington, D.C., focused on discussions over the global economy and Russia’s invasion of Ukraine rather than exchange-rate moves.

 

Dollar Edges Lower; G7 Intervention Concerns Mount

The U.S. dollar edged lower in early European trade Thursday as the world’s key finance ministers meet but remains elevated amid expectations for aggressive Federal Reserve monetary tightening.

At 3:15 AM ET (0715 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% lower at 100.165, retreating from the more than two-year peak of 101.03 seen earlier in the week.

Benchmark 10-year U.S. Treasury yields have pulled back from the highest level since December 2018 at close to 3%, helping the dollar to hand back some recent gains.

 

Euro Up as De Guindos Joins ECB Chorus Flagging Possible July Rate Hike

The euro rose in early trading in Europe on Thursday as Vice President Luis De Guindos joined a growing chorus of European Central Bank officials acknowledging the possibility of an interest rate hike as early as July.

De Guindos’ comments follow similar ones from Deutsche Bundesbank head Joachim Nagel, and his Belgian and Latvian counterparts Pierre Wunsch and Martins Kazaks within the last 24 hours. All four are attending the International Monetary Fund’s spring meeting.

 

Asia shares fall on China slowdown fears, but lower yields limit losses

Fears of a sharp economic slowdown in China and higher oil prices weighed on most Asian stocks on Thursday, but a dip in U.S. treasury yields offered some relief for broader markets worried by the prospect of aggressive rate hikes.

Chinese and Hong Kong shares hit month lows and the yuan fell to its lowest in six months as Shanghai authorities said tough COVID-19 restrictions would remain in place.

Chinese blue chips shed 1.8% while Hong Kong stocks fell 2%, both falling to their lowest level since mid-March. The spot yuan touched 6.4478 per dollar, its softest level since October.

The declines pulled MSCI’s broadest index of Asia-Pacific shares outside Japan 0.66% lower, despite gains in Korea and Australia, where the local benchmark rose 0.4% to not far off a record peak.

 

Judge rejects ‘gag order’ for Elon Musk

Elon Musk will not be subjected to a “gag order” preventing him from discussing a lawsuit claiming he defrauded Tesla (NASDAQ:TSLA) Inc shareholders by tweeting in 2018 about taking his electric car company private, a federal judge ruled on Wednesday.

U.S. District Judge Edward Chen in San Francisco agreed with Musk and Tesla that the proposed temporary restraining order appeared overbroad because it prevented Musk from speaking to “anyone” about the case.

 

 

 

 

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