(Bloomberg) -- Shares fell and the dollar edged higher Wednesday after a Russian-made missile struck Poland, damping earlier positive sentiment from signs that the Federal Reserve may slow interest-rate hikes.
Poland’s zloty saw some of the largest falls against the greenback as US President Joe Biden convened a meeting of leaders at the Group of 20 summit to discuss the incident.
Equities in China, Japan, Australia and South Korea fell, along with US and European stock futures. Treasuries held most of the gains made on Tuesday.
Oil fluctuated as investors weighed a potential escalation of the war in Ukraine. Gold edged lower.
The declines for stocks in Asia followed a rally in the US after producer price index data undershot estimates, easing inflation concerns and supporting the case for a slowdown in rate hikes. A slew of Fed speakers in recent days have indicated the central bank could slow the tempo of rate rises while cautioning more work is needed to tame inflation.
“I don’t think we’re at the trough,” said Ann Berry, founder and managing partner of Threadneedle Ventures in New York, speaking on Bloomberg TV about the S&P 500. “I would not be surprised if we hit the 3,600 level again if we see the confidence that has come into the market deflate,” she said, implying a 10% decline from Tuesday’s closing price.
Key events this week:
- US business inventories, cross-border investment, retail sales, industrial production, Wednesday
- Fed’s John Williams, Lael Brainard and SEC Chair Gary Gensler speak, Wednesday
- ECB President Christine Lagarde speaks, Wednesday
- Eurozone CPI, Thursday
- US housing starts, initial jobless claims, Thursday
- Fed’s Neel Kashkari, Loretta Mester speak, Thursday
- US Conference Board leading index, existing home sales, Friday
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 fell 0.2% as of 11:16 a.m. Tokyo time. The S&P 500 rose 0.9%
- Nasdaq 100 futures fell 0.2%. The Nasdaq 100 rose 1.5%
- The Topix Index fell 0.3%
- Australia’s S&P/ASX 200 Index fell 0.4%
- The Hang Seng Index fell 0.4%
- Euro Stoxx 50 futures fell 0.9%
Currencies
- The Bloomberg Dollar Spot Index rose 0.1%
- The euro rose 0.2% to $1.0371
- The Japanese yen fell 0.3% to 139.69 per dollar
- The offshore yuan fell 0.3% to 7.0664 per dollar
Cryptocurrencies
- Bitcoin fell 0.2% to $16,861.85
- Ether rose 1.3% to $1,261.39
Bonds
- The yield on 10-year Treasuries advanced one basis point to 3.78%
- Japan’s 10-year yield was little changed at 0.24%
- Australia’s 10-year yield declined six basis points to 3.70%
Commodities
- West Texas Intermediate crude fell 0.4% to $86.54 a barrel
- Spot gold fell 0.2% to $1,775.10 an ounce