The lead in to Asia was a weak Friday (and indeed week) for US stocks. US stock index futures slipped further again during the session here (i.e. Sunday evening US trade on Globex). The combined weight of Federal Reserve (and other central banks) raising rates, high consumer price inflation, economic slowdown, and persistent lockdowns in China are combining to send ‘risk’ lower.

In the FX space the USD strengthened during the session across the majors board. Yen, CHF, AUD, EUR, GBP, CAD, NZD – all have lost ground on the session here today against the US$. Gold, too, is lower.

Crypto has continued its decline. ETH is under USD2500 while BTC/USD dropped under 33K at one stage (its slightly above that as I post)., its lowest since around July last year.

Onshore yuan was set (reference rate) more than 560 points lower against the USD today (that is, USD/CNY more 560 pts higher). As it began trading USD/CNY rose to above 6.71, the lowest for onshore yuan since November 2020.

Oil dropped also but as I post has staged a comeback. There are posts above on continued efforts to make progress on getting Iran back into the nuclear deal and on Saudi Aramco cutting prices for June.

oil cl 09 May 2022