Bitcoin Plummets and Stocks Fall in a Bad December Start – Asia Market Wrap
US stock futures and cryptocurrencies dipped, indicating risk aversion ahead of a flood of economic data this week, even as bets on a December Fed interest rate cut remain strong.
S&P 500 contracts fell up to 0.8%, while Nasdaq 100 futures fell 1%. Japanese stocks led Asia’s losses, as the Yen surged after BoJ’s Ueda signalled the clearest hint yet of a rate hike this month. Before his speech, the two-year bond yield reached its highest level since 2008. Bitcoin fell over 6% to trade below $86,000, adding new momentum to a wide-ranging selloff that appeared to be over.
The MSCI All Country World Index dipped 0.1% in November after increasing for seven consecutive months. The surge was interrupted as confidence over high-flying AI stocks waned due to growing concerns about stretched valuations and excessive spending. Over the last decade, the global equities index has risen by an average of 0.5% in December, according to data.
A rise in metals stocks helped Chinese equities start December on a positive note. That comes despite data released on Sunday showing that factory activity increased but remained in contraction in November, extending its slide streak to a record as the country’s economic recession continues.
Ueda told local business leaders on Monday that the BoJ “will consider the pros and cons of raising the policy interest rate and make decisions as appropriate” after assessing the economy, inflation, and financial markets at home and abroad. According to the overnight swap index, traders expect a 64% chance of a rate hike when the central bank’s next policy meeting ends on December 19th.
