GLOBAL MARKETS DJIA 32653.20 -79.75 -0.24% Nasdaq 10890.85 -97.30 -0.89% S&P 500 3856.10 -15.88 -0.41% FTSE 100 7186.16 91.63 1.29% Nikkei Stock 27686.23 7.31 0.03% Hang Seng 15296.28 -158.99 -1.03% Kospi 2336.17 0.95 0.04% SGX Nifty* 18228.00 -27 -0.15% *Nov contract USD/JPY 147.28-29 -0.65% Range 148.37 147.18 EUR/USD 0.9892-95 +0.20% Range 0.9897 0.9871 CBOT Wheat Dec $9.024 per bushel Spot Gold $1,648.19/oz Unch. Nymex Crude (NY) $88.33 $1.80 US STOCKS
U.S. stocks slipped as investors considered the trajectory of interest-rate increases ahead of the Federal Reserve's rates decision on Wednesday.
The S&P 500 eased 0.4% while the Dow Jones Industrial Average lost 0.2% and the Nasdaq Composite Index shed 0.9%.
The central bank is widely expected to announce another 0.75-percentage-point rate increase at the end of its two-day monetary-policy meeting. Some Fed officials have signaled they could consider a smaller half-point rate lift in December.
ASIAN STOCKS
The Nikkei Stock Average was down 0.2% at 27611.94 in early trade as falls in chemical and precision-instrument makers offset gains in energy and electronics stocks. The broader Topix market index was up 0.1% at 1940.19. Investors remain focused on earnings, with auto maker Subaru Corp. and Nomura Holdings scheduled to disclose their quarterly results later in the day.
South Korea's benchmark Kospi fell 0.3% to 2328.46 in early trade, dragged by nuclear-energy and biotech shares. Some investors are booking profit after a recent rally, amid caution ahead of the U.S. Federal Reserve's upcoming rate decision.
Hong Kong's Hang Seng Index dropped 1.0% to 15296.91 in early trade, weakening from a 5.2% gain in the previous session amid hopes of easing pandemic restrictions in China. Tech stocks weighed on the market.
Chinese shares were lower as investors remain wary about the prospect that the country will ease its zero-Covid policy. Unconfirmed reports about a potential reopening in March sent shares surging Tuesday. "If we get a political nod to ease out of Covid-zero in 1Q, that would be sufficiently positive to drive a substantial global 'risk-on' move," SPI Asset Management managing partner Stephen Innes said in a note. Travel and consumer stocks led losses. The Shanghai Composite Index fell 0.3% to 2960.65, the Shenzhen Composite Index slipped 0.2% and the ChiNext Price Index was 0.6% lower.
FOREX
Asian currencies consolidated against USD ahead of the FOMC decision due later today. The important point is that even if the Fed were to signal a slower pace of rate hikes after tonight's expected 75bp increase, the Fed is likely to reiterate the need to keep rates "higher for longer" to give the impression that the battle against inflation is not yet over, said MUFG Bank currency analyst Sophia Ng in a research report. The likely hawkish outcome of the FOMC meeting could lend support to USD bulls tonight, Ng added. USD/KRW was steady at 1,417.23, while USD/SGD fell 0.2% to 1.4124 and AUD/USD was up 0.1% at 0.6402.
NZD/USD was recently at 0.5840, hovering near its highest level in more than a month despite recent weakness in dairy prices. "Positioning ahead of the FOMC decision tomorrow is also at play, and suggests moves in the Kiwi following today's NZ labor market data may be short-lived," ANZ said. Still, ANZ said the jobs data could rattle a few cages when it comes to RBNZ expectations. ANZ expects the unemployment rate to have fallen to 3.1% in 3Q, from 3.3% in 2Q. "The hurdle for the labor market not to look inflationary is extremely high, but the hurdle to beat the RBNZ's forecast (particularly for wage growth) isn't what we'd call low," ANZ said.
METALS
Gold prices were little changed, after settling higher overnight on a weaker dollar. There are expectations among traders that the Fed will join the RBA in moving toward a slower pace of tightening, Oanda senior market analyst Craig Erlam said in a note. "The expectations concerning the future course of U.S. monetary policy and the associated US dollar trend will presumably dictate the direction for the gold price in the short term," Commerzbank analysts said in a note. Spot gold was recently flat at $1,648.19/oz.
OIL SUMMARY
Oil prices gained in early Asian trade with sentiment supported by a weaker USD and hopes for changes to China's Covid-19 policy. "Potential changes to China's Covid-19 policy could have significant implications for oil demand," ANZ analysts said in a note. China is the world's largest oil importer. There was speculation Tuesday on social media sites, such as Twitter, that Chinese authorities could set up a team to consider reopening options. Front-month WTI futures were 0.3% higher at $88.63/bbl, while Brent rose 0.2% to $94.82/bbl.
TOP HEADLINES Stocks Finish Lower Ahead of Fed Decision U.S. Job Openings Rose in September in a Still-Tight Labor Market Saudi Arabia, U.S. on High Alert After Warning of Imminent Iranian Attack Traders Expect Higher Interest Rates to Stay for Foreseeable Future Before OPEC+ Production Cut, Saudis Heard Objections From a Top Ally, the U.A.E. Japan Finance Minister Says Concerned About Gradual Weakening of Yen Glynn's Take: RBNZ Unlikely to Jump on Slower Tightening Bandwagon South Korea's Inflation Accelerated in October U.S. manufacturing barely expands in October, ISM says Ukraine Keeps Shipping Grain, Defying Russian Military Threat Pyongyang Fires Missile as U.S., South Korea Conduct Joint Drills Biden Warns GOP Would Slash Social Security, Medicare, in Pitch to Older Voters Brazil President Jair Bolsonaro Pledges to Respect Constitution After Election Loss Prudential Financial Suffers Big Loss on Rising Rates Mondelez International Raises Outlook Despite Lower Profits China Evergrande Group Gets Enforcement Notices on $4.48 Billion Loan AMD Forecasts Deepening Slump in PC Sales as Consumer Demand Softens Airbnb Books Record Revenue as Travel Demand Remains Strong Ad Giants Advise Brands to Pause Spending on Elon Musk's Twitter Former CNN Boss Jeff Zucker in Talks to Join RedBird Capital HSBC CFO Ewen Stevenson Sought Top Job Before Surprise Resignation
(END) Dow Jones Newswires
11-01-22 2315ET
