EQUITIES
Asia-Pacific markets reversed earlier gains and fell on the first day of the new quarter, with Japan’s Nikkei 225 leading losses in the region, fell by 1.73%. In South Korea, the KOSPI reversed course to fall 1.40%, and in Australia, the S&P/ASX 200 slipped 0.43% lower.
Mainland China markets were also lower despite positive data on the manufacturing front. The Shanghai Composite shed 0.37%, though were set to log five straight weeks of gains.
Markets in Hong Kong were closed on Friday for a holiday.
The European markets also set to retreat on opening later today, as inflation and interest rate hikes continue to weigh on sentiment.
Overnight on Wall Street, U.S. stocks also closed the second quarter of the year lower. The S&P 500, which had its worst first half in more than 50 years, declined nearly 0.9% to 3,785.38. The Dow Jones Industrial Average slipped 0.8%, to 30,775.43, and the Nasdaq Composite pulled back by 1.3% to 11,028.74.
OIL
Growth worries punched oil lower on Friday, as lingering fears of a recession demand weighed on sentiment, putting the benchmarks on track for their third straight weekly losses.
OPEC+ gave no surprise, despite U.S. pressure to expand quotas, saying it would stick to its planned oil output hikes in August, Previously, OPEC+ decided to increase output each month by 648,000 bpd in July and August, up from a previous plan to add 432,000 bpd per month.
The U.S. WTI crude lost 0.76% to $105.14 per barrel, while international benchmark Brent were down 5.61%, at $108.43 a barrel. Both contracts fell around 3% on Thursday.
CURRENCIES
The greenback was firm on Friday and heading for a weekly gain, as the dollar index was up at 104.912. The dollar was on track for its best week in four, gained about 0.6% in a volatile trade as investors weighed the boost from tighter Federal Reserve policy and the risks of a U.S. recession.
The Fed has lifted the policy rate by 150 basis points since March, with half of that coming last month in the central bank's biggest hike since 1994. The market is betting on another of the same magnitude at the end of this month.
GOLD
Strong dollar and rising U.S yields have kept a lid on gold, was drifting toward a weekly loss at $1,796.80 an ounce on Friday. U.S gold futures was down 0.60% to $1,796.80.
ECONOMIC OUTLOOK
Stock markets made a shaky start to the second half on Friday, as investors grow increasingly nervous about the global economic outlook, as inflation and interest rate hikes continue to weigh on sentiment.
Inflationary pressures continue to mount, prompting central banks to embark on aggressive monetary policy tightening and exacerbating fears of a global economic slowdown.
The war in Ukraine also shows no sign of abating.
A string of surveys on Friday reported of weak Asia's manufacturing activities also weighed on the sentiment, despite a despite bounce in China. China's factory activity was seen bouncing solidly in June though a slowdown in Japan and South Korea, as well as a contraction in Taiwan, highlighted the strain from supply disruptions, rising costs, and persistent material shortages.
Next focus later in the day, the market will be watching for U.S. ISM manufacturing figures. Markets will also look to eurozone inflation data for a better sense of how aggressive the ECB might be.
