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GLOBAL MARKETS DJIA 33482.72 80.34 0.24% Nasdaq 11996.86 -129.47 -1.07% S&P 500 4090.38 -10.22 -0.25% FTSE 100 7662.94 28.42 0.37% Nikkei Stock 27510.69 -302.57 -1.09% Hang Seng 20240.06 -34.53 -0.17% Kospi 2478.69 -16.52 -0.66% SGX Nifty* 17603.00 -22 -0.12% *April contract USD/JPY 131.15-16 -0.13% Range 131.35 130.80 EUR/USD 1.0887-90 -0.17% Range 1.0913 1.0885 CBOT Wheat May $6.820 per bushel Spot Gold $2,018.75/oz -0.1% Nymex Crude (NY) $80.46 -$0.25 U.S. STOCKS
Stocks mostly fell Wednesday as investors focused on fresh signs of a slowing U.S. economy.
The S&P 500 dropped for a second day, closing down 10.22 points, or 0.2%, at 4090.38. The tech-heavy Nasdaq Composite dropped 129.47 points, or 1.1%, to 11996.86. The Dow Jones Industrial Average was the outlier, inching up 80.34 points, or 0.2%, to 33482.72.
Data this week has suggested the labor market is weakening.
Marija Veitmane, head of equity research at State Street, said investors have shifted their attention away from March's banking turmoil and back to the risk of a recession that could drag down consumer spending and corporate profits.
"I'm in the camp that bad news is bad news," said Ms. Veitmane. "This week, we're getting this realization that we're avoiding a banking crisis but economic fears are still there. We're going from financial crisis to cyclical slowdown."
"Recession risks have increased," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note to clients. "As the slowdown of the U.S. economy becomes more apparent, we think investors should prepare for a peak in interest rates by considering opportunities in bonds."
ASIAN STOCKS
Japanese stocks were lower in morning trade, dragged by falls in electronics stocks as the yen strengthened and concerns grow about the global economic outlook. USD/JPY was at 130.89, down from 131.53 as of Wednesday's Tokyo stock-market close. Investors were focusing on economic data and their policy implications after figures overnight showed that hiring among U.S. private-sector employers lost momentum in March. The Nikkei Stock Average was down 1.0% at 27528.00.
South Korea's benchmark Kospi was 0.6% lower at 2481.10 in early trade as semiconductor and battery stocks fell. U.S. tech stocks' retreated overnight on signs of an economic slowdown prompts investors to book profit after two straight days of gains. Foreign and institutional investors were net sellers. USD/KRW was 0.5% higher at 1,316.50.
Hong Kong's benchmark Hang Seng Index was 0.6% lower at 20146.22 in early trade, tracking Wall Street Losses overnight as data showing signs of weakness in the U.S. labor market renewed recession worries. Tech companies were weighing on the market, with the Hang Seng Tech Index sliding 1.5%. Developers' shares are also down. Among the gainers were precious-metals miners as the risk-off mood bolstered prices of haven metal gold.
Chinese shares were lower in early trade, as the market retreated from recent gains. The benchmark Shanghai Composite Index shed 0.2% to 3204.67. The Shenzhen Composite Index was down 0.4% while the ChiNext Price Index was 0.5% lower. CICC analysts said the stock market was likely to remain well supported throughout April, as macroeconomic recovery momentum continues to pick up. This upbeat trend should offer structural support for companies' earnings growth in the coming months and underpin solid valuation outlook, they said.
FOREX
Safe-haven currencies like USD and JPY strengthened in the morning Asian session amid a risk-off mood triggered by weaker-than-expected U.S. economic data released Wednesday. "Clearly, underlying risk aversion and latent demand for haven refuge" aren't over, said Mizuho Bank. This is exemplified by USD's rebound despite lower Treasury yields, it added. USD/SGD rose 0.2% to 1.3299 while AUD/USD fell 0.3% to 0.6701; EUR/JPY was down 0.2% at 142.84 and AUD/JPY dropped 0.3% to 87.91.
METALS
Gold was slightly lower in early Asian trade, pulling back from the record high levels earlier this month. Many analysts have warned of profit taking risk in the near term due to the elevated price levels. However, China Everbright Bank analysts reckoned the safe haven asset should remain well supported in the long run, given continued uncertainties over the banking sector's systematic risk. Rising hopes for the end of the Fed's tightening cycle could offer an extra boost for gold prices, they added. Spot gold was down 0.1% at $2,018.75/oz.
OIL SUMMARY
Oil edged lower in the early morning Asian session. Energy traders were digesting a round of U.S. data suggesting that the world's largest economy is headed toward a recession, Oanda said. However, that is being offset somewhat by mildly bullish EIA crude-oil inventory data and by news that Saudi Arabia is reportedly set to raise oil prices for Asia customers, Oanda added. Front-month WTI crude oil futures were 0.2% lower at $80.43/bbl; front-month Brent was 0.2% lower at $84.84/bbl.
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(END) Dow Jones Newswires
04-05-23 2315ET
