Global equities falter as Didi delisting reignites US-China concerns – .

Global equities falter as Didi delisting reignites US-China concerns – .

SYDNEY, Dec. 3 (Reuters) – Shares fell on Friday after Chinese rideshare giant Didi announced it would be delisting in New York City, rekindling concerns over U.S.-China tensions and tech regulation, while oil headed for a sixth consecutive weekly cut on Omicron and worried rate hike.

S&P 500 futures fell about 0.5%. Hong Kong’s Hang Seng (.HSI) fell 1.3%, led by big names in tech. The MSCI Asian Non-Japan Equity Index (.MIAPJ0000PUS) fell 0.7%.

The risk-sensitive Australian dollar fell 0.3% and, at just under 71 cents, is near its lowest level in a year.

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Didi (DIDI.N) clashed with Chinese regulators in continuing its $ 4.4 billion US IPO in July and said on Weibo that he was looking to move its listing to Hong Kong. Read more

“The write-offs that are starting to occur are causing some nervousness about the uncertainty as to their impact on the larger situation between the United States and China,” said Moh Siong Sim, analyst at the Bank of Singapore.

Didi’s news comes a day after Singapore-based rideshare and delivery company Grab (GRAB.O) lost more than 20% on its Nasdaq debut. Listing is highest on Wall Street by a Southeast Asian company. Read more

More broadly, markets have swung on little harsh news on Omicron this week, pushing the CBOE Volatility Index (.VIX) towards its biggest one-week jump since the pandemic chaos of February 2020. Short-term returns also jumped as investors bet on higher rates, even with Omicron’s uncertainty.

Traders will have to wait at least a week or so for an early reading of the virulence or vaccine resistance of the variant. US labor data due later Friday is also the focus of attention as a guide to rates.

Benchmark Brent crude futures ended higher overnight at $ 69.67 a barrel, but have fallen more than 3% this week and are down more than 18% from a high three years of October.

So far, in the absence of details on Omicron, some governments have still made efforts to close the borders. But other policymakers – notably the Federal Reserve – are moving cautiously to the pace of plans to move away from crisis-mode responses.

Fed Chairman Jerome Powell said central bankers would talk about a faster decline in bond purchases at this month’s meeting and stop describing inflation as transient. OPEC’s oil cartel is moving forward with planned production increases. Read more

“The Fed is not ignoring Omicron’s threat, but chooses not to let it delay policy responses that suggest a more business-as-usual perspective,” said Tobin Gorey, Commonwealth Bank of Australia strategist.

“OPEC + has done the same,” he added. “Neither has frozen their planned policy changes… and both are perhaps examples that suggest that lockdown responses to outbreaks are becoming less likely. “

The bond market’s response to Powell’s hawkish turn has been to raise short-term rates and lower longs, believing that earlier hikes will ultimately dampen future inflation and growth, and sharply flatten the U.S. yield curve. .

Yields on two-year Treasuries held steady in early Asian exchanges for a weekly gain of nearly 10 basis points.

Benchmark 10-year Treasury yields, on the other hand, have fallen almost 6 basis points to 1.4291% this week and 30-year yields are down 7.3 basis points to 1.7545% .

“It’s inflation, not growth, that is pushing the Fed to accelerate its tightening plans,” said Kit Juckes, strategist at Societe Generale in London.

“For the first time in ages, the risk to this US economic cycle is that it ends earlier than expected by consensus forecasts,” he said, predicting that the bullish momentum of the US dollar could slow down. to peak around the middle of next year. .

Investors sold riskier currencies on Friday. The risk-sensitive Australian and New Zealand dollars lost around 0.3% each. The euro was stable at $ 1.1298 and the yen at 113.08 per dollar.

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Reporting by Tom Westbrook; Editing by Sam Holmes

Our Standards: Thomson Reuters Trust Principles.


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