GLOBAL MARKETS DJIA 32910.90 -269.24 -0.81% Nasdaq 12086.27 -88.96 -0.73% S&P 500 4115.77 -44.91 -1.08% FTSE 100 7593.00 -5.93 -0.08% Nikkei Stock 28259.76 25.47 0.09% Hang Seng 22019.78 5.19 0.02% Kospi 2610.83 -15.32 -0.58% SGX Nifty* 16282.50 -66.5 -0.41% *June contract USD/JPY 134.26-27 +0.00% Range 134.55 134.10 EUR/USD 1.0720-23 +0.03% Range 1.0724 1.0710 CBOT Wheat July $10.746 per bushel Spot Gold $1851.35 -0.04% Nymex Crude (NY) $122.43 $3.02 US STOCKS
U.S. stocks fell as investors parsed an ambivalent outlook for the global economy and awaited key data about inflation.
The S&P 500 was down 1.1% and the blue-chip Dow Jones Industrial Average lost 0.8%. The technology-heavy Nasdaq Composite Index slipped 0.7%.
In another sign of slowing economic activity, a measure of U.S. mortgage applications fell to its lowest level in 22 years last week, indicating a pullback in the blistering real-estate market. U.S. consumer-price index data due Friday will be crucial, said Michael Arone, chief investment strategist at State Street Global Advisors. The data are expected to show inflation in the U.S. held steady at 8.3% in May, on the year.
ASIAN STOCKS
Japanese stocks were higher, led by gains in auto stocks, as a weaker yen raised hopes for an earnings improvement. Investors were focusing on China’s Covid-19 restrictions, the war in Ukraine and their implications on crude and bond yields. USD/JPY was at 134.39, up from 133.20 as of Wednesday’s Tokyo stock market close. The Nikkei Stock Average was 0.2% higher at 28297.76.
South Korea’s Kospi fell 0.5% to 2614.21 in early trade, led by losses in transport, tech and construction stocks. Investor sentiment remained downbeat after the Organization for Economic Cooperation and Development cut its global growth forecast following in the footsteps of the World Bank. A retreat overnight in European and U.S. stocks was also weighing on the mood.
Hong Kong shares were higher in volatile early trading, with the Hang Seng Index flitting between positive and negative territory. The HSI was up 0.2% at 22049.75. A strong performance in the U.S. ADR market was sending share prices higher, KGI Securities analysts said in a note. While optimisim over an expected easing of regulatory pressure by China was also lending support, profit-taking could emerge and send prices back down, they said. Gains were broad-based.
China stocks were mixed in early trade, slightly improving from opening losses. The benchmark Shanghai Composite Index edged up 0.1% to 3267.44, while the Shenzhen Composite Index was down 0.5% at 2072.08. The tech-heavy ChiNext Price Index was the worst performer, shedding 1.2% to 2544.52. Central China Securities analysts said the market’s recovery momentum appears intact, as daily trading volume has continued to improve in recent sessions. It sees short-term opportunities in the auto and new-energy sectors, which are likely to be a focus of expected upcoming policy support measures from Beijing.
FOREX
The ICE Dollar Index managed to stay in positive territory as the Fed is expected to extend its hawkish drive and raise rates by 50 basis points next week. Other developed countries were also hiking, with the notable exception of Japan, where the yen has another losing day, falling 1.2% to the greenback. The euro rose slightly against the dollar ahead of tomorrow’s ECB meeting. The pound was down 0.4% and the Aussie fell 0.5%.
METALS
Gold was little changed in early Asian trading, although retail demand for the precious metal could grow as China’s Covid-19 lockdowns ease. Onshore China gold prices have been increasing as Covid-19 cases fall and economic stimulus measures are rolled out, according to the World Gold Council’s market commentary. Moves in other asset classes were also in focus among investors, with equity-market weakness likely to spur interest in the haven asset, the council said. Spot gold was 0.04% lower at $1851.35.
OIL SUMMARY
Oil edged higher in early Asian trading, with prices supported by a bullish demand outlook amid lower U.S. crude and gasoline inventories, analysts from ANZ said in a note. There are also bullish signals from China, with retail sales of passenger vehicles rising 30% in May from April, which should support fuel demand, the analysts added. Supply constraints could also keep the oil market tight, with most OPEC members appearing to be near maximum production capacity, ANZ said. Front-month Brent rose 0.1% to $123.67/bbl; WTI was flat at $122.15/bbl.
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(END) Dow Jones Newswires
June 08, 2022 23:15 ET (03:15 GMT)
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