HONG KONG, July 6 — Equities mostly fell in Asia today and the euro wallowed at a 20-year low as recession fears flowed through markets, while political uncertainty hit the pound as UK Prime Minister Boris Johnson suffered a series of resignations.
Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Taipei and Jakarta all sank, though Wellington, Bangkok, Manila and Mumbai saw gains.Investors were racing “to price in both a US recession... and also the potential for wider virus restrictions in China following overnight developments”, OANDA’s Jeffrey Halley said.
And Citigroup said in a note that a recession could lead prices to drop as low as US$65 this year if OPEC and other major producers do not step in to provide support and companies do not invest. “Markets are saying recession is coming, inflation will slow down, commodities will fall and the Fed will cut rates in 2023,” said Gang Hu, at Winshore Capital Partners.