China's GDP is expected to be measured in Asia, with Asian shares jittering ahead of the country' s growth, while oil has hit new highs
- China Q3 GDP seen rising 5.2% - Reuters poll
- Oil hits new multi-year highs due to energy crisis, hitting new high on new records.
- Bitcoin is not far off its all-time high.
- Futures on Japan's Nikkei and United States dollars are sliding.
On Monday morning, Asian shares were on edge ahead of the release of Chinese economic data for the third quarter, as investors fret over the health of America's second-largest economy even as US businesses report strong quarterly earnings.
Oil prices have reached new multi-year highs, continuing their recent rise amid a global energy shortage, with U.S. crude at nifty seven years high and Brent at three years.
Bitcoin remained within sight of its all-time high, sitting at $62,500, slightly above April's record of $64,895, after rising last week amid fears that U.S. regulators would allow a futures-based exchange-traded fund (ETF).
MSCI's broadest Asia-Pacific share index outside Japan (.MIAPJ0000PUS) was down 0.07% in early trading on Monday, while Japan' s Nikkei (.00N225) lost 0.12%. The S&P 500 e-minis, which trades for U.S. stock futures, were down 0.13%.
Stocks worldwide (.MIWD00000PUS) returned to a high last week, posting their highest day in five months on Friday as strong U.S. corporate earnings reports fuelled optimism about the economy, despite rising oil prices keeping inflation risks alive and increasing government bond yields.
According to the 56 economists' median estimates, the Chinese data dump is likely to show that gross domestic product (GDP) rose 5.2% in July-September from a prior period, making it the lowest rate since the third quarter of 2020.
In a note, Barclays analysts said that they expected GDP to slow "in view of persistent weakness in consumption and services due to repeated COVID outbreaks, and the fading of the low year-earlier base."
As the saga over the fate of beleaguered property developer China Evergrande Group (3333.HK) rages on, investors pointed to power shortages, supply bottlenecks and rising property jitters.
China's economy is "doing well", according to Yi Gang, the central bank'' s governor, on Sunday, despite "mismanagement" that poses risk to some firms, including defaults due to "missmanagement". read more
Investors are also continuing to prepare for the Federal Reserve to begin tapering its massive asset purchases this year.
The yield on benchmark 10-year Treasury notes rose to 1.5904% on Monday, heading back to the four-month high of 1.6310% reached early Tuesday, before a sluggish performance later in the week.
Analysts at CBA said they expect U.S. interest rates to rise further as inflation increases, supporting the dollar, which "has further upside on our view."
The pound could rise on the dollar this week as "UK economic and inflation dynamics support the upward shift to the UK interest rates", while the Chinese yuan traded off-shore could be hurt by Chinese GDP figures, they added.
In early trading on Monday, most currencies were quiet. The greenback was little changed against a basket its peers at 93.992, off its one-year high of 94.563 hit last Monday, while the yen hovered near its almost three- year low against the dollar.
U.S. crude was last up 0.92% at $83.04 a barrel, while Brent crude, on the other hand, was only 0.57 percent higher at 855.35 per barrel.
Gold was last up 0.14% at $1,769.60 an ounce, after falling 1.5% on Friday due to higher U.S. bond yields and a decrease in U U-S retail sales.