GLOBAL MARKETS DJIA* 31318.44 -337.98 -1.07% Nasdaq* 11630.86 -154.26 -1.31% S&P 500* 3924.26 -42.59 -1.07% FTSE 100 7287.43 6.24 0.09% Nikkei Stock 27638.91 19.30 0.07% Hang Seng 19159.25 -66.45 -0.35% Kospi 2404.43 0.75 0.03% SGX Nifty# 17681.00 -3.5 -0.02% #Sept contract USD/JPY 140.51-52 -0.05% Range 140.61 140.26 EUR/USD 0.9961-64 +0.30% Range 0.9972 0.9928 CBOT Wheat* Sept $7.930 per bushel Spot Gold $1,720.14/oz 0.7% Nymex Crude (NY)* $87.02 $0.41 *Markets in the U.S. were closed Monday for the Labor Day holiday. EUROPEAN STOCKS
On Monday, European indexes fell and the euro touched a new 20-year low after Russia indefinitely halted natural-gas flows through a major pipeline, sending energy prices soaring.
The pan-continental Stoxx Europe 600 index dropped 0.6%, while Germany's DAX lost 2.2%. The U.K.'s FTSE 100 bucked the trend to rise 0.1%. All three indexes had posted larger declines earlier in the session.
U.S. stock futures gained, with markets closed for the Labor Day holiday. Contracts linked to the S&P 500, Dow Jones Industrial Average and Nasdaq-100 all rose 0.3%.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in auto and airline stocks, as concerns continue about fuel costs and the economic outlook. Nissan Motor fell 1.8% and Japan Airlines was 1.4% lower. Meanwhile, Japan Petroleum Exploration gained 0.8% and Inpex was 0.4% higher after OPEC+ agreed on Monday to cut oil production for the first time in over a year. Investors were closely watching the war in Ukraine, geopolitical developments around Taiwan and their implications for global trade. The Nikkei Stock Average was down 0.1% at 27581.64.
South Korea's benchmark Kospi was 0.6% higher at 2419.03, led by gains in electronic-related stocks. Battery maker Samsung SDI Co. was up 0.9% while chip maker SK Hynix gained 0.8% and Samsung Electronics was 0.4% higher. Other gainers include Samsung Biologics, which added 0.5%. Decliners include LG Corp., which was down 1.5%. Investors were likely to focus on cues from the performance of the U.S. market which reopens today after the Labor Day holiday, UOB analysts said in a morning note.
Hong Kong's Hang Seng Index rose 0.7% to 19353.71, amid improving sentiment for Asian stocks. Market sentiment was likely helped by China's stance that will accelerate its stimulus rollout to boost economic growth in 3Q, said IG market strategist Jun Rong Yeap in a note. Gainers included CNOOC Ltd., which rose 3.0% on higher crude-oil prices following OPEC+'s production cut. Other gainers include Country Garden Holdings, which was up 2.8% and CSPC Pharmaceutical Group which was 2.4% higher. Decliners include MTR Corp., which was down 0.5%.
Chinese shares diverged in early trade, with defense stocks in the lead and energy stocks extending Monday's gains, while renewable-energy sectors weakened. Prices of oil, natural gas and coal were set to keep rising due to the Russia-Ukraine conflict, pushing up related sectors, Soochow Securities said in a research note. Rongsheng Petro Chemical gained 3.1% and Shaanxi Coal added 1.4%, while electric-car battery maker CATL fell 3.8% and Yunnan Energy New Material was down 2.4%. The Shanghai Composite Index added 0.5% to 3214.97, the Shenzhen Composite Index was flat and the ChiNext Price Index was 1.5% lower.
FOREX
Today's announcement by the Reserve Bank of Australia would need to be on the hawkish side to get the market to raise its expectations for the peak cash rate, said Australia & New Zealand Banking Group. Consensus expectations were for the RBA to hike by 50 basis points today, taking the cash rate to 2.35%, from 1.85%. The cash rate is anticipated to peak a bit above 3.8% by mid-2023, ANZ said. The NZD/AUD was at 0.8962 ahead of the RBA's decision at 2.30pm Sydney time. "With 46bps priced in, even our pick of a 50bp hike would be a surprise," ANZ said in a note. "Will come down to whether the RBA is sufficiently hawkish."
METALS
Gold was higher in early Asian trade. The strength of the U.S. dollar has not dampened the appeal of the precious metal, which was now trading around a key level of support, said Craig Erlam, a senior market analyst with Oanda in a note. He sees $1,680/oz as a key barrier for the metal, and reckoned that a break below that level could signal further pressure on gold, especially if accompanied by aggressive tightening from central banks. Spot gold was 0.7% higher at $1,720.14/oz.
OIL SUMMARY
Crude-oil prices were mixed in early Asian trade, following an announcement from OPEC+ that the producer group will trim production by 100,000 barrels a day in October. This move effectively reverses the output hike of the same volume made in September, ANZ analysts said in a research report. While the cut was unlikely to change supply-and-demand dynamics, it showed that the group was serious about supporting prices, ANZ added. However, the banks said it thinks the impact of the OPEC+ announcement on Brent crude futures could be muted due to growing concerns about demand from China. The front-month WTI futures contract was up 2.3% at $88.84/bbl, while Brent crude futures fell 0.5% to $95.22/bbl.
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(END) Dow Jones Newswires
09-05-22 2315ET
