US markets closed sharply lower overnight in a broad sell-off after fresh jobs data indicated a strong labor market boosting yields and fanned fears that the Fed will be more aggressive in hiking rates. The Dow Jones fell 366 points (-1.07). Dow at worst down 517 points. S&P 500 posted its biggest daily drop since May, down 0.79%. NASDAQ down 0.82%. Wall Street’s fear gauge VIX jumped, up 8.9%. Gains in mega-cap tech stocks helped mitigate declines which ended above their session lows. Microsoft +0.92% and Apple +0.25%. Short-dated 2Y US treasuries rose above 5.0% for the first time since early March and touched their highest levels since June 2007. In currencies, the USD Index fell 0.20%

• ASX 200 to fall at the opening bell. SPI Futures down 90 points (1.26%)

European markets lower, slumping to their lowest level in three months as further interest rate hikes globally dented risk sentiment. STOXX 50 -2.9% FTSE -2.2% CAC -3.1%, and DAX -2.6%. Asian markets are also in the red, apart from India +0.52%. Goldman Sachs downgraded major Chinese banks over government debt concerns raising worries over a sector already under pressure from a sluggish property market and economic growth. The Hang Seng Mainland Index fell 2.69%.

• Gold dropped 0.35%, after better-than-expected private payrolls in the US.
• Tin rose 3.42%, hitting a 5-month high as worries around long-term supply sent the price higher.
• Copper -0.72% Nickel -0.09% Aluminium -0.4% Zinc +0.47%, Lead -0.48%
• WTI Crude and Brent almost flat overnight as tighter supplies were offset by the risk of US rate hike.
• 10Y Bond yields: US 4.03%, Australia 4.22%, and Germany 2.61%.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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