Bitcoin is currently hovering not far from all time highs.
HONG KONG, Oct 18 Reuters - Mainland Chinese and Hong Kong equity markets fell on Monday after data showed China's economy grew more slowly than expected in the third quarter weighing on regional stocks, though losses were capped by hopes of support from policymakers.
Currently, oil prices hit new multi-year peaks, which continue to surge amid a global energy shortage, with U.S. crude at a fresh seven-year high and Brent at a three-year high.
China's gross domestic product GDP grew from a year earlier in July-September of this year, the weakest pace since the third quarter of 2020, as China grappled with power shortages, supply bottlenecks and sporadic COVID - 19 outbreaks as well as rising jitters about the property industry.
The Chinese blue chips were down 1.53% and the Hong Kong benchmark lost 0.56%, although most of the losses came before the bell, prior to the release of the data.
In response to the ugly growth numbers we expect in the coming months, we think policymakers will take more steps to shore up growth, said Louis Kuijs, head of Asia economics and Oxford Economics.
It is our opinion that future power shortages and production cuts will become less of a problem later in Q4. In line with our expectation, senior policymakers have started to stress growth and we expect them to start calling for the pursuit of climate targets on a more measured timeline. The stronger than expected data on regional benchmarks weighed in. MSCI's broadest index of Asia-Pacific shares outside Japan was last down 0.2%, while Japan's Nikkei lost 0.3%. Stock futures, the S&P 500 and U.S. stocks were steady.
The Asian declines come after stocks globally finished last week in a bullish mood posting their best day in five months on Friday as strong U.S. corporate earnings reported fuelled optimism about the economy, although firm oil prices kept inflation risks alive and lifted government bond yields.
Investors meanwhile continue to fret over inflation, driven by the closure of COVID 19 and supply chain issues, said Shane Oliver, chief economist at AMP, which point as an example to New Zealand, which on Monday reported a 2.2% rise in its consumer price index in the third quarter, the fastest pace in over a decade.
In the last two weeks however, the stock markets have been shrugging off most things which he added.
Analysts at CBA said as inflation pressure builds, they expect U.S. rates to increase, supporting the Canadian currency notes which increased further against forecasts. The yield on benchmark 10-year Treasury notes rose as high as 1.5930% on Monday, heading back towards the four month high of 1.6310% and hitting early Tuesday, before a wobble later in the week.
The pound could gain on the dollar next week as UK economic and inflation dynamics support the upward shift to UK interest rates according to CBA analysts.
In early trading on Monday, most currencies were quiet. The greenback was little changed against a basket its peers at 93.992, off its one-year high of 94.563 hit last Monday, while the yen hovered near its almost three-year low against the dollar.
Brent crude was last up 1.28% to $83.33 a barrel, while U.S. crude was last higher at $85.58 and expected to be $83.38 a barrel as of today?
Gold rose last with $1,769. It was 0.12% higher at 0.14%. 60 an ounce, after falling 1.5% on Friday on higher U.S. bond yields and a rise in U.S. retail sales.
Bitcoin was within sight of its all-time high, sitting at $62,000 and not far from the April record of $64,895, after gaining confidence last week on hopes that U.S regulators would permit a futures-based exchange trading fund or fund.