GLOBAL MARKETS DJIA 32774.41 -58.13 -0.18% Nasdaq 12493.93 -150.53 -1.19% S&P 500 4122.47 -17.59 -0.42% FTSE 100 7488.15 5.78 0.08% Nikkei Stock 27818.80 -181.16 -0.65% Hang Seng 19785.31 -218.13 -1.09% Kospi 2483.87 -19.59 -0.78% SGX Nifty* 17503.50 -37 -0.21% *Aug contract USD/JPY 135.04-05 -0.08% Range 135.30 135.02 EUR/USD 1.0215-18 +0.03% Range 1.0220 1.0203 CBOT Wheat Sept $7.814 per bushel Spot Gold $1,793.57/oz Unch. Nymex Crude (NY) $90.65 -$0.11 US STOCKS
U.S. stock indexes were lower as investors monitored earnings reports and economic data ahead of inflation figures.
The S&P 500 slipped 0.4%, a day after the broad index finished with modest losses. The Dow Jones Industrial Average slid 0.2% while the technology-heavy Nasdaq Composite fell 1.2%.
Investors await consumer-price data on Wednesday that could set expectations for how the Federal Reserve will approach monetary policy at its coming meetings.
"The market has enjoyed a risk-on environment since the lows of mid-June, and investors interpreted Chair [Jerome] Powell as more dovish than he had hoped at the last Federal Reserve meeting," said Quincy Krosby, chief global strategist for LPL Financial. "But today's market is tomorrow's market-Wednesday's inflation data will provide a clearer picture as to whether this bear market is truly behind us."
According to Ms. Krosby, inflation is the No. 1 concern for the market, including not only whether it is subsiding, but how quickly.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in electronics stocks, as uncertainty continued about the economic outlook and earnings growth. Earnings remain in focus, with Obayashi Corp., Dai-ichi Life Holdings and Honda Motor scheduled to report their results later in the day. The Nikkei Stock Average was 0.8% lower at 27785.45.
South Korea's benchmark Kospi fell 0.6% to 2488.54 in early trade, dragged by losses in electronics, internet and biotech stocks. The downgraded outlook from U.S. tech giant Micron Technology is weighing on semiconductor stocks. Investors are awaiting U.S. consumer-price data due later in the day to set expectations for the Fed's policy stance at its upcoming rate-setting meetings. Concerns about a global tech downturn sent top memory-chip maker Samsung Electronics lower.
Hong Kong's Hang Seng Index was down 0.2% at 19956.51 amid caution ahead of key economic data. Investors are likely also staying on the sidelines ahead of the release of U.S. CPI data as well as more corporate earnings results, KGI Research analysts said in a research note.
Chinese shares were lower in morning trade amid worries over the country's rising number of Covid-19 cases. The benchmark Shanghai Composite Index inched 0.1% lower to 3243.68, the Shenzhen Composite declined 0.2% to 2183.55 and the ChiNext Price Index slipped 0.3% to 2687.89. Investors will be parsing July CPI and PPI data released this morning. UOB analysts think the driverless-vehicle sector will be in focus over the longer term, after the country issued the first permits for fully driverless commercial robotaxi services in Chongqing and Wuhan.
FOREX
Asia currencies were mixed against USD in the morning Asian session ahead of the U.S. July CPI report due later today. Investors are likely to be cautious ahead of the release, with consensus expecting a slight slowing in headline inflation but an acceleration in core inflation, MUFG Bank currency analyst Sophia Ng said in a research report. Under such a scenario, a 75bp rate increase by the Fed in September probably remains on the table, as the U.S. central bank attempts to curb inflation, the analyst added. USD/CNH edged 0.1% higher to 6.7593 while USD/SGD was little changed at 1.3789 and AUD/USD was down 0.1% at 0.6954.
METALS
Gold prices were flat in early Asia trade. The precious metal could continue to trade sideways in the near term as the market continued to weigh the balance between Federal Reserve tightening and economic growth risks, Goldman Sachs analysts said in a note. The investment bank expects the price of gold to reach $1,850/oz in three months, before rising to $1,950/oz over six to 12 months. Spot gold was recently at $1,793.57/oz.
OIL SUMMARY
Crude-oil prices were a tad lower in early Asian trade. Trading could be choppy as investors weigh renewed supply-side issues alongside signs of rising demand, ANZ said in a research report. Russian pipeline operator Transneft said that Ukraine halted flows through a pipeline, which could affect up to 250,000 barrels a day of crude-oil deliveries, the analysts said. However, there are also early signs of demand recovery for crude oil in China, ANZ added. The front-month WTI contract was down 0.2% at $90.35/bbl while the front-month contract for Brent crude was 0.1% lower at $96.19/bbl.
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(END) Dow Jones Newswires
08-09-22 2315ET
