GLOBAL MARKETS DJIA 35490.69 -266.19 -0.74% Nasdaq 15235.84 0.12 0.00% S&P 500 4551.68 -23.11 -0.51% FTSE 100 7253.27 -24.35 -0.33% Nikkei Stock 28832.69 -265.55 -0.91% Hang Seng 25636.70 7.96 0.03% Kospi 3030.33 4.84 0.16% SGX Nifty* 18262.50 9.0 0.05% *Nov contract USD/JPY 113.58-59 -0.20% Range 113.86 113.55 EUR/USD 1.1608-11 +0.06 Range 1.1611 1.1590 CBOT Wheat Dec $7.596 per bushel Spot Gold $1,802.10/oz 0.3% Nymex Crude (NY) $82.12 -$2.53 US STOCKS
US stocks fell as investors scrutinized the results of several of the largest US companies.
The major indices hovered between small gains and losses for most of the day’s trading. The S&P 500 fell 0.5% at the close of 4 p.m. New York, a day after the broad gauge of stocks closed at an all-time high for the 57th time this year. The Dow Jones Industrial Average, which also closed on Tuesday at a record high, fell 0.7%, while the technology-focused Nasdaq Composite Index was roughly flat.
Strong earnings allayed investor concerns over supply chain issues, inflation and Chinese economic growth that rocked markets in early fall. The S&P 500 is on track for its strongest monthly advance since November. Additional earnings reports released throughout the week will give investors more clues as to how companies are coping with labor and commodity shortages.
ASIAN STOCKS
Japanese stocks fell, dragged down by companies posting weak results, as concerns persisted over a shortage of parts and higher raw material costs. Profits were the focus, with Sony Group Corp. results. being expected later in the day. The Nikkei Stock Average was down 1.1% to 28,789.89.
South Korea’s Kospi gained 0.2% to 3,031.89 in mixed morning trade, recouping losses at the opening bell. Electronics and shipbuilding values rose, while energy and travel values fell. Index heavyweight Samsung Electronics rose 0.4% after posting record quarterly revenue and 31% year-on-year net profit growth for the third quarter, reversing its initial decline in Q3. opening.
Hong Kong stocks were higher in morning trading, showing signs of recovery after days of losses. The benchmark Hang Seng index edged up 0.1% to 25,658.81, rebounding slightly from the opening declines. Solar glassmaker Xinyi Solar led the gains with a 3.6% increase, as sentiment towards the renewables industry remained optimistic after strong earnings. But sportswear company Li Ning weighed on the market with a 5.6% drop following plans to hand over shares. KGI Securities said the index was unlikely to maintain its bullish momentum, citing growing concerns over inflationary pressures and weakness in US stocks. The brokerage expected trading to remain limited to a range during the session.
Chinese stocks fell early in the session, partially offset by auto stocks. The Shanghai Composite Index fell 0.5% to 3,545.94 and the Shenzhen Composite Index fell 0.5% to 2,385.97. The ChiNext price index – a measure for emerging industries and startups – lost 0.3% to 3,299.99. The market will likely focus on Covid-19 developments in China, as infections in Beijing are at their highest level for eight months, IG said. The announcement of a ban on China Telecom’s operations in the United States could also fuel concerns about further scrutiny of Chinese tech players by the United States and weigh on sentiment, IG said.
FOREX
Some of the current interest rate fuel for the AUD / USD is expected to fade, the CBA estimated, based on its view that the current market pricing of RBA interest rate increases is too aggressive. Australian third quarter inflation data increased the risk that the RBA would raise its key rate by the end of 2022 “but we consider a start in mid-2022 to be too early in our view Australian economic outlook, in particular the labor market “. The CBA also expected the RBA to continue to defend the 0.10% yield target for the April 2024 bond, putting the brakes on the Australian dollar. AUD / USD rose 4.1% this month to 0.7519, in part due to rising expectations of a tightening of monetary policy.
METALS
Gold rose in Asian morning trading, recovering slightly from earlier losses. The precious metal appears to be struggling to keep gains above $ 1,800.00, Oanda said, adding that investors will likely turn their attention to next week’s FOMC meeting for now. “It is almost certain that the start of Fed cuts will be announced,” Oanda said. Spot gold rises 0.3% to $ 1,802.10 / oz.
OIL SUMMARY
Oil fell in early Asian trade, following US government data showing an increase in national crude stocks. Additional supply could come from Iran, as the resumption of nuclear talks between the country and the EU suggests the possibility that it will soon be able to export crude oil again, the ABC said. First-month WTI crude oil futures fell 2.3% to $ 80.73 / bbl. First month Brent crude oil futures are down 2.6% to $ 82.40 / bbl.
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(END) Dow Jones Newswires
10-27-21 2315ET
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