TOKYO, July 6 — Asian stocks slipped and the dollar stood by a two-decade high on the euro today as investors’ fears deepened that the continent is leading the world into recession, while oil and European equity futures attempted to steady after a slide.
Hong Kong’s Hang Seng index was down 0.42 per cent while Chinese blue chips fell 0.7 per cent, dragged by worries about new Covid-19 cases in Shanghai risking fresh restrictions. “Right now defence is the name of the game. It’s the best strategy right now, because in a recession a lot of things can fall out of bed.” Uncertainty over Europe’s gas supply has set prices rocketing. Benchmark Dutch gas prices have doubled since the middle of June and rose 7 per cent overnight to a four-month high.
Sterling was also pinned by a two-year low and not helped by the latest political crisis to hit Prime Minister Boris Johnson’s government, with the resignation of his finance and health secretaries questioning his longevity as leader.A change in leader, or speculation about it, could lend support but it is weighed heavily by an economic outlook that a new leader is unlikely to shift.