Global recession fears puts stocks on ice while Bitcoin rallies

TL;DR: Asian markets open in mixed territory this morning after the S&P 500 closed out its worst week since March on Friday; however, bitcoin has rallied.

📰 What’s moving markets?

• China and India markets open in mixed territory this morning, with the Hang Seng down -0.28% while the Nifty 50 edges gains of 0.08%.

• The Nikkei 225 slumped 4.2% last week ending it’s 10 week winning streak, and it doesn’t look set to recover today, trading relatively flat at -0.07%.

• US stocks closed out their worst seek since March on Friday, with the S&P 500 losing c. 1.5% during the week as a series of interest rate hikes across the UK and Europe sparked fresh fears of a global recession.

• The Nasdaq 100, MSCI World, China’s major indices and Japan’s Nikkei 225 also had their worst week since March over concerns that inflation might be higher for longer.

• Futures point towards European markets opening relatively flat this morning, largely unphased by the mutiny in Russia.

• Bitcoin rallied over the weekend, touching $31,000 on Saturday for the third time this year as BlackRock files an application with the SEC for a spot bitcoins ETF.

📊 Chart of the day

The S&P 500 and Vix (CBOE Volatility Index) normally move with a negative correlation of -0.78% (avg. last 30 years). However, the correlation has become unusually positive at +0.61 (avg. last 10 days) as the markets have fallen over over the past week but volatility remains low.

SPX and VIX correlation

📅 Coming up this week

Monday 26th June

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Tuesday 27th June

• Japan BoJ Core CPI (YoY) expected: 3.4%, last; 3.0%

• Canada Headline CPI (YoY) expected: 4.2%, last: 4.4%

• Canada Core CPI (YoY) expected: 3.9%, last: 4.1%

• US Housing Price Index (YoY) expected: 3.1%, last: 3.6%

• Australia Headline CPI (YoY) expected: 6.1%, last: 6.8%

Wednesday 28th June

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Thursday 29th June

• Euro Zone Consumer Confidence expected: -16.1, last: -17.4

• Germany Headline CPI (YoY) expected: 6.3%, last: 6.1%

• US GDP (QoQ) expected: 1.4%, last: 1.3%

• Japan Unemployment Rate expected: 2.6%, last: 2.6%

Friday 30th June

• UK GDP (QoQ) expected: 0.1%, last: 0.1%

• Euro Zone Core CPI (YoY) expected: 5.5%, last: 5.3%

• Euro Zone Headline CPI (YoY) expected 5.7%, last 6.1%

• Canada GDP (MoM) expected: 0.2%, last 0.0%

📈 The markets at a glance