GLOBAL MARKETS DJIA 32656.70 -232.39 -0.71% Nasdaq 11455.54 -11.44 -0.10% S&P 500 3970.15 -12.09 -0.30% FTSE 100 7876.28 -58.83 -0.74% Nikkei Stock 27421.68 -23.88 -0.09% Hang Seng 20231.64 445.70 2.25% Kospi Closed SGX Nifty* 17373.50 -25.5 -0.15% *Mar contract USD/JPY 136.36-37 +0.11% Range 136.48 136.12 EUR/USD 1.0582-85 +0.06% Range 1.0588 1.0566 CBOT Wheat March $6.914 per bushel Spot Gold $1,824.10 -0.1% Nymex Crude (NY) $76.95 $1.27 US STOCKS
U.S. stock indexes wobbled in a relatively quiet session and wrapped up February with declines.
The S&P 500 ticked down 0.3%, while the technology-focused Nasdaq Composite slipped 0.1%. The Dow Jones Industrial Average slid 0.7%.
The indexes finished February in the red. Stocks charged higher to kick off 2023, with the S&P 500 and Nasdaq Composite peaking for the year on Feb. 2. But the gains unraveled as hotter-than-expected economic releases, including data on the labor market and consumer spending, spurred investors to reassess their expectations for inflation and monetary policy.
The S&P 500 fell 2.6% in February. The Dow and Nasdaq dropped 4.2% and 1.1%, respectively.
Derivatives markets show traders now expect the Federal Reserve to lift interest rates well above 5% this year, and then keep them there, as officials try to bring inflation under control.
"The growing realization through February was that actually the U.S. economy is not responding sufficiently to the Fed hikes" so far, said Seema Shah, chief global strategist at Principal Asset Management. "And that has meant that the labor market has continued to tighten and that, as a result, inflation pressures are still hot and heavy and simply not likely to decelerate."
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in pharmaceutical and shipping stocks, as uncertainty continued about the extent of policy tightening by central banks and its impact on the economy. Investors are focusing on economic data and their policy implications. The Nikkei Stock Average was recently down 0.2% at 27378.82.
Hong Kong's Hang Seng Index rose 0.8% to 19944.98 after Chinese economic data this morning showed the country's February official manufacturing PMI stood at 52.6, beating market expectations for a reading of 50.5. The Hang Seng Tech Index was up 1.0% at 3963.29.
China stocks were mixed in morning trade, extending a recent range-bound trading pattern as buying sentiment remained weak. The benchmark Shanghai Composite Index inched up 0.3% to 3286.88, the Shenzhen Composite Index slipped 0.1% to 2140.33 and the ChiNext Price Index fell 0.3% to 2421.06. The market has been muted recently after a reopening-driven rally in January, with renewed worries about monetary tightening by the Fed and other central banks. However, A shares' longer-term recovery momentum likely remains promising, analysts at China Securities said in a note. They pointed to further room for corporate earning rebound trends as macroeconomic conditions in China improve. The market's valuations also look inexpensive, they added. Sentiment could also be buoyed by upbeat Chinese PMI data releases this morning.
South Korean markets are closed today for a holiday.
FOREX
Most Asian currencies strengthened against the USD in the morning session, as risk appetite improved following this morning's strong February PMI data out of China. The official manufacturing PMI, official non-manufacturing PMI and Caixin manufacturing PMI were uniformly robust, suggesting a strengthening economy emerging from under the pandemic and zero-Covid strictures, said Alvin T. Tan, head of Asia forex strategy at RBC Capital Markets, in an email. USD/KRW fell 0.4% to 1,318.27 and USD/CNY edged 0.1% lower to 6.9261 while AUD/USD was up 0.1% at 0.6737.
METALS
Gold was a tad lower in early Asian trade, pulling back from some gains overnight following weaker-than-expected U.S. consumer confidence data. The strength of buying momentum toward the haven metal is unclear, with gold futures posting their first monthly drop since October. Oanda senior market analyst Craig Erlam sees support at $1,780-$1,800, and said how gold reacts to this level could be a strong indicator of sentiment toward the precious metal ahead of key data releases. Spot gold was down 0.1% at $1,824.10.
OIL SUMMARY
Crude-oil prices were lower in early Asian trade. As China remains the most persistent driver for crude oil's price outlook, China's February PMI data will give hints on whether National People's Congress policymakers will stick to a marginal increase in fiscal stimuli that will impact demand, said Stephen Innes, managing partner at SPI Asset Management, in a note. The front-month WTI futures contract was down 0.3% at $76.85/bbl, while front-month Brent crude futures fell 0.3% to $83.24/bbl.
TOP HEADLINES Stocks Close February With Declines Austan Goolsbee Says Fed Shouldn't Rely on Financial Markets for Economic Clues China's Factory, Services, Construction Activities Rebounded in February China Caixin Manufacturing PMI Returns to Expansion Australia's Economic Growth Slowed in Fourth Quarter as Consumer Spending Cooled House Passes Bill Taking Aim at ESG Investments Consumer confidence slips to three-month low on worries about recession Home-Price Growth Slowed in 2022 U.S. trade deficit in goods climbs to three-month high of $91.5 billion CFTC Picks Former Cybercrime Prosecutor as Enforcement Chief China Data-Transfer Rule Adds to Strains on Multinationals New Home Sales in China Pick Up After a Long Slump Lawmakers Seek More Information on Biden, Trump Classified Documents Following Briefing FBI Director Says Covid Pandemic Likely Caused by Chinese Lab Leak House Committee Lays Out Case for China Threat AMC stock tumbles after 14th consecutive quarterly loss, fourth straight year in the red Rivian Posts Mixed Quarterly Results, Issues New Recall Ram Truck Brand Considers Expansion to More Markets Outside U.S. Nissan Recalls More Than 800,000 Rogue SUVs for Key Defect Instacart's Revenue and Profit Climb Ahead of Public Listing Paramount Turned Down $3 Billion-Plus Offer for Showtime From Former Executive Apollo in Talks to Buy Aerospace-Parts Maker Arconic Goldman Considers Shrinking Its Consumer Business Ericsson Compliance Chief to Leave as Company Remains Under U.S. Scrutiny McDonald's Cardi B and Offset Promotion Draws Pushback From Some Restaurant Owners TikTok Ban Debated by House Lawmakers Close Ally of FTX Founder Sam Bankman-Fried Pleads Guilty to Fraud Glencore Subsidiary Sentenced, Ordered to Pay $30 Million to Medical Company Sam's Club Adding Distribution Centers to Speed Up Online Fulfillment Target's Slim Sales Growth, Rising Costs Weigh on Earnings
(END) Dow Jones Newswires
02-28-23 2215ET
