GLOBAL MARKETS DJIA 33596.34 -350.76 -1.03% Nasdaq 11014.89 -225.05 -2.00% S&P 500 3941.26 -57.58 -1.44% FTSE 100 7521.39 -46.15 -0.61% Nikkei Stock 27765.75 -120.12 -0.43% Hang Seng 19522.54 81.36 0.42% Kospi 2390.28 -2.88 -0.12% SGX Nifty* 18726.50 -26 -0.14% *Dec contract USD/JPY 136.90-91 -0.11% Range 137.37 136.83 EUR/USD 1.0471-74 +0.07% Range 1.0478 1.0456 CBOT Wheat Dec $7.054 per bushel Spot Gold $1,770.48/oz Unch Nymex Crude (NY) $74.40 -$2.53 U.S. STOCKS
U.S. stock indexes extended declines Tuesday as investors weighed fears about the outlook for interest rates against optimism surrounding China's reopening.
The S&P 500 dropped 57.58 points, or 1.4%, to 3941.26, while the Dow Jones Industrial Average fell 350.76 points, or 1%, to 33596.34, and the technology-heavy Nasdaq Composite slid 225.05 points, or 2%, to 11014.89.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in electronics and energy stocks, as concerns continue about the U.S. interest-rate outlook amid high inflation. Investors were focusing on crude-oil prices and the yen. The Nikkei Stock Average was down 0.6% at 27710.81.
South Korea's benchmark Kospi fell 0.4% to 2384.45 in early trade, as electronics and fintech stocks retreated. Wall Street's extended declines amid growing concerns about higher interest rates and a possible recession next year are weighing on investor sentiment. Foreign and retail investors were net sellers. USD/KRW is 0.2% higher at 1,322.00 on renewed risk aversion.
Hong Kong's benchmark Hang Seng Index was recently up 0.4% at 19519.85, after opening lower tracking losses on Wall Street overnight. Investors remain concerned about aggressive monetary tightening by the Fed after strong U.S. economic data. Laggards include Chinese property developers and oil majors. Alibaba Health was up 3.4%, resuming a recent rally as Chinese authorities ease some Covid-19 restrictions.
Mainland China shares were lower in early trade after rising for two sessions so far this week. Market watchers expect Beijing to shift its focus to economic development in 2023 as the country moves toward reopening, which means more support for growth and further support for the property sector, UBS said. Chip makers and pharmaceutical stocks weighed on the market while shares of transportation and consumption companies continued to rally. The Shanghai Composite Index was down 0.2% at 3204.94, the Shenzhen Composite Index was 0.3% lower and the ChiNext Price Index was off 0.5%.
FOREX
NZD/USD was at 0.6320 early on Wednesday, trading in a narrow band. Australia and New Zealand Banking Group said the focus was increasingly on next week's Fed meeting. "We think it will be tricky to interpret," ANZ said. "A smaller hike is all but assured, leaving the focus on the terminal rate, which will have to strike the right balance: high enough to credibly bring down inflation, but not so high that it stokes recession fears." ANZ expected a volatile USD through the remainder of 2022, with a good chance of a correction higher. Next week's half-year economic update, or HYEFU, was also important for the NZD. "It's unlikely to be bond friendly, but potentially higher bond yields and the need for offshore buyers may translate to NZD buy flows," ANZ said.
METALS
Gold prices were trading sideways in the early Asian trade. The price of the precious metal was holding up despite the risk-off mood on Wall Street on recession fears, which was driving a move back to safe havens, Oanda said. It expects gold to consolidate near $1,760/oz. Spot gold was flat at $1,770.48/oz.
OIL SUMMARY
Crude-oil prices were mixed in early trade amid an uncertain outlook. While there has been recent optimism over China further easing its Covid-related restrictions, refiners have been cutting output this month due to fears that demand is dwindling, ANZ said. Fears of weaker global economic growth could also weigh on the price of the oil, it added. The front-month WTI futures contract was down 0.1% at $74.21/bbl while the front-month Brent crude contract rose 0.2% to $79.49/bbl.
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(END) Dow Jones Newswires
12-06-22 2215ET
