(Bloomberg) -- Shares continued their declines and currencies fluctuated amid caution in markets as investors awaited highly anticipated US inflation data later Thursday.
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Stocks fell in Japan, Hong Kong and South Korea, along with European futures. US contracts were little changed after a sixth consecutive decline for the S&P 500, which fell to the lowest level since November 2020.
The dollar held on to recent gains and the yen crept back from a fresh 24-year low that has put traders on watch for intervention from Japan.
Investors are on tenterhooks as they await consumer price figures that may determine if the Federal Reserve delivers a fourth-straight outsized hike in interest rates, piling more pressure on an already struggling world economy. Minutes released on Wednesday from the Fed’s last meeting suggested some officials considered reducing the pace of rate hikes, which triggered a brief surge on Wall Street that quickly unwound.
“The Fed needs data to start finding an off-ramp,” Carol Schleif, deputy chief investment officer at BMO Family Office, said on Bloomberg Television. “That’s a tough market to be in. Until we get a bunch more data, markets will have to figure out how to find their footing.”
Yen traders prepared for a spike in volatility when the CPI report lands. The currency fell 2% minutes after last month’s release. The offshore yuan inched lower. Investors speculated that Chinese authorities are employing a tactic used in 2019 to steady the currency.
The pound declined slightly in Asia after a busy day of bond buying from the Bank of England, which reiterated the view that its emergency support for the gilt market would cease on Friday, contradicting a media report that suggested it could endure. UK pensions were found offloading assets around the world to shore up liquidity ahead of the move.
The Biden administration is considering adding aluminum to economic sanctions against Russia. Shares in Rusal, the Russian aluminum giant that has a listing in Hong Kong, fell sharply. Vladimir Putin said any energy infrastructure in the world is at risk after the explosions on the Nord Stream pipelines. Oil fell.
Key events this week:
Earnings this week include: JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, BlackRock Inc., Delta Air Lines Inc., UnitedHealth Group Inc., U.S. Bancorp, Wells Fargo & Co.
US CPI, initial jobless claims, Thursday
G-20 finance ministers and central bankers meet, Thursday
China CPI, PPI, trade, Friday
US retail sales, business inventories, University of Michigan consumer sentiment, Friday
BOE emergency bond buying is set to end, Friday
Some of the main moves in markets:
Stocks
Futures on the S&P 500 were little changed as of 2:09 p.m. Tokyo time. The S&P 500 fell 0.3%
Futures on the Nasdaq 100 were little changed. The Nasdaq 100 was little changed
The Topix Index fell 0.7%
The S&P ASX Index was little changed
The Hang Seng Index fell 1.2%
The Shanghai Composite Index fell 0.1%
Euro Stoxx 50 futures fell 0.5%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $0.9702
The Japanese yen was little changed at 146.83 per dollar
The offshore yuan fell 0.1% to 7.1833 per dollar
Cryptocurrencies
Bitcoin fell 0.5% to $19,072.19
Ether fell 1.2% to $1,283.08
Bonds
The yield on 10-year Treasuries advanced two basis points to 3.92%
Japan’s 10-year yield was little changed at 0.25%
Australia’s 10-year yield advanced five basis points to 3.99%
Commodities
West Texas Intermediate crude was little changed
Spot gold fell 0.2% to $1,669.71 an ounce
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