Dollar Reigns As Investors Fear Recession Pain

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Asian stocks fell and the dollar stood by a two-decade high on the euro as investors’ fears deepened that the continent is leading the world into recession. While oil and European equity futures made a wobbly attempt to steady.

Brent crude futures have slid this month on worries that a global slowdown will sap demand. Prices slumped 9.5% to a 2-1/2 month low of $101.10 before bouncing slightly to $103.86 a barrel in the Asia session.
MSCI’s index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) fell 1%, led by a 2% drop for Taiwan’s benchmark index (.TWII) – heavy with growth-sensitive computer chip makers – which hit an 18-month low. Japan’s Nikkei (.N225) fell 1.1%.

S&P 500 futures fell 0.1% while FTSE futures and EuroSTOXX 50 futures rose 1% after heavy Tuesday selling.
Accordingly ,the dollar has been king and a safety bid has even returned to the beaten-down Japanese yen. The U.S. dollar index hit a 20-year high of 106.79 on Tuesday, hoisted by a tumbling euro.

The index hovered at 106.440 on Wednesday and the yen rose about 0.4% to 135.39 per dollar.
There are no important support levels for EUR/USD until $1,” said Commonwealth Bank of Australia strategist Kristina Clifton.
Spot gold was last steady at $1,771 an ounce after sliding on the strong dollar overnight. The safe haven is down about 3% this year, less than the steep losses for equities and bonds.

Treasuries were steady in Asia with the 10-year yield at 2.8327% and the two-year yield at 2.8385%. Bitcoin , which has been demolished in the flight from risky assets, sat at $20,115.

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