GLOBAL MARKETS DJIA 29134.99 -125.82 -0.43% Nasdaq 10829.50 26.58 0.25% S&P 500 3647.29 -7.75 -0.21% FTSE 100 6984.59 -36.36 -0.52% Nikkei Stock 26051.39 -520.48 -1.96% Hang Seng 17493.92 -366.39 -2.05% Kospi 2176.27 -47.59 -2.14% SGX Nifty* 16856.50 -198.5 -1.16% *Oct contract USD/JPY 144.67-68 -0.09% Range 144.87 144.41 EUR/USD 0.9553-56 -0.43% Range 0.9603 0.9547 CBOT Wheat Dec $8.714 per bushel Spot Gold $1,629.81/oz 0.1% Nymex Crude (NY) $78.51 $1.80 US STOCKS
U.S. stocks finished mixed after swinging between gains and losses as investors parsed a spate of economic data and comments from Federal Reserve officials.
The Dow Jones Industrial Average, which entered a bear market on Monday, fell 0.4% Tuesday. The broad S&P 500 slipped 0.2%, closing at its lowest level of the year for the second day in a row. The technology-heavy Nasdaq Composite Index was up 0.3%.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, reaffirmed the central bank's resolve to bring down persistent and elevated inflation in an interview with The Wall Street Journal. "There's a lot of tightening in the pipeline," Mr. Kashkari said, adding that the Fed is "committed to restoring price stability" but also recognizes "there is a risk of overdoing it."
Data showed that companies reduced durable goods orders for a second straight month. Home prices continued to notch big year-over-year gains, but the pace of that growth slowed. Home prices fell month over month.
However, consumers are growing more optimistic about the U.S. economy. The Conference Board's consumer-confidence index increased in September for the second month in a row, lifted in part by falling gas prices.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in bank and real-estate stocks, as concerns continued about policy tightening by major central banks and the economic outlook. The yen is in focus after the Japanese government intervened in the market last week to support the currency. USD/JPY was at 144.66, compared with 144.40 as of Tuesday's Tokyo stock market close. The Nikkei Stock Average was down 0.4% at 26476.45.
South Korea's benchmark Kospi declined 0.8% to 2207.06 in early trade, tracking U.S. stocks, which closed mostly lower overnight amid concerns over the gloomy economic outlook. A hawkish Fed and prospects for additional large interest rate increases through year-end create a dilemma for South Korea's monetary policy, Goldman Sachs analysts said in a note. "Recent policymakers' remark that 'the Fed stance introduces a new factor to consider' suggest that the Bank of Korea would likely prefer to avoid a large divergence in bilateral policy rates," they added.
Hong Kong stocks declined in early morning trade, pulling back from Tuesday's small gains to resume a sharp downturn since last week. The benchmark Hang Seng Index was down 1.8% at 17537.18. China Industrial Securities analysts said growth sectors have been regaining some ground in recent sessions, a sign of potential improvement in investors' risk-taking appetite. They reckon the Hong Kong market could bottom out soon, but advised investors to wait for more positive signals, such as higher market turnover, to better confirm the trend.
Chinese shares fell in early trade, reversing some of Tuesday's gains as the outlook for China's economic recovery remains uncertain. Sporadic Covid-19 outbreaks in the country this year have disrupted manufacturing and supply chains, and the pandemic could continue to pose risks to economic growth, Shanxi Securities said in a note. Losses were led by property developers and miners, while the oil-and-gas sector recovered some of its recent weakness. The Shanghai Composite Index fell 0.3% to 3083.87, the Shenzhen Composite Index gave up 0.6% and the ChiNext Price Index was 0.9% lower.
FOREX
Most Asian currencies weakened against USD amid higher Treasury yields, which enhance the appeal of USD-denominated fixed-income assets. Soaring yields have sent USD higher and continued to put pressure on equities, said Tina Teng, markets analyst at CMC Markets, in an email. A slew of Fed officials continued to back "higher for longer" rates to curb inflation, while U.S. economic data such as new home sales were stronger than expected, Teng added. USD/CNH climbed 0.8% to 7.2347 after earlier touching a record intraday high of 7.2389, while USD/SGD gained 0.5% to 1.4469 after reaching 1.4474, its highest intraday level since March 2020, according to FactSet.
METALS
Gold rose slightly as the USD rally took a breather. The greenback's movements and developments related to the Fed's rate increases will remain in focus. "Gold won't bottom out until Wall Street feels they have a firm handle on how rates will go and right now it seems rates will need to quickly get above current CPI levels," Oanda senior market analyst Edward Moya said in a note. Spot gold rose 0.1% to $1,629.81/oz.
OIL SUMMARY
Oil fell amid USD strength, though losses may be limited by Hurricane Ian's approach in the U.S., analysts said. Hurricane Ian is leading to more disruptions to offshore oil and gas production in the U.S. Gulf of Mexico, said ING strategists in a research report. Latest figures from the Bureau of Safety and Environment Enforcement show 11% of U.S. Gulf of Mexico's oil production has been shut, while 8.56% of natural gas production has been shut, ING added. Front-month WTI crude oil futures fell 1.6% to $77.22/bbl; front-month Brent crude oil futures were 1.6% lower at $84.91/bbl.
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(END) Dow Jones Newswires
09-27-22 2315ET
