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The Daily Exchange Rate: is 4,061 KHR to the USD$
ASIA STOCKS WEIGHED BY INFLATION CONCERNS, CHINA TECH SELLING.
Asian stocks came under pressure on Monday as persistent worries about inflation and rising interest rates dogged the global economic outlook and fresh selling in technology stocks weighed on Chinese markets.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat, after U.S. stocks ended the previous session with negligible gains for the day. The index is down 3.6% so far this month.
A negative tone was evident as Hong Kong's Hang Seng Index (.HSI) slid 0.38% and the mainland's CSI300 Index (.CSI300) dropped 0.37%, led by a 1.5% decline in technology firms (.HSTECH).
Australian shares (.AXJO) gained 0.42% while Japan's Nikkei stock index (.N225) was 0.8% higher.
The yield on benchmark 10-year Treasury notes rose to 2.7883% from its U.S. close of 2.787% on Friday.
The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 2.5869%, up from 2.583%.
Uncertainty in market sentiment this week follows the S&P 500's (.SP500) meagre gains on Friday of just 0.01%.
The Nasdaq (.IXIC) declined 0.30% while the Dow Jones Industrial Average (.DJI) rose 0.03%.
Despite the marginal gains, the S&P 500 and the Nasdaq recorded their seventh straight weeks of losses, the longest losing streak since the end of the dotcom bubble in 2001.
The Dow suffered its eighth consecutive weekly decline, its longest since 1932 during the Great Depression.
WALL ST WEEK AHEAD AS BEAR MARKET LOOMS, BATTERED WALL ST SEEKS ELUSIVE 'FED PUT'
The Federal Reserve's determination to raise interest rates until it squashes the highest inflation in decades is darkening the outlook across Wall Street, as U.S. stocks stand on the cusp of a bear market and warnings of a recession grow louder.
At issue is the so-called Fed put, or investors’ belief that the Fed will take action if stocks fall too deeply, even though it has no mandate to maintain asset prices. One oft-cited example of the phenomenon, which is named after a hedging derivative used to protect against market falls, occurred when the Fed halted a rate hiking cycle in early 2019 after a stock market tantrum.
A recent survey by BofA Global Research showed fund managers now expect the Fed to step in at 3,529 on the S&P 500 (.SPX), compared with expectations of 3,700 in February. Such a drop would constitute a 26% decline from the S&P’s Jan. 3 closing high.
The index, which closed Friday at 3,901.36, is already down almost 19% from that high this year on an intraday basis - close to the 20% decline that would confirm a bear market, according to some definitions.
