GLOBAL MARKETS DJIA 33202.22 -764.13 -2.25% Nasdaq 10810.53 -360.36 -3.23% S&P 500 3895.75 -99.57 -2.49% FTSE 100 7426.17 -69.76 -0.93% Nikkei Stock 27588.64 -463.06 -1.65% Hang Seng 19220.41 -148.18 -0.77% Kospi 2351.22 -9.75 -0.41% SGX Nifty* 18403.50 -56 -0.30% *Dec contract USD/JPY 138.61-62 +0.61% Range 138.62 137.65 EUR/USD 1.0342-45 -2.68% Range 1.0642 1.0344 CBOT Wheat March $7.572 per bushel Spot Gold $1,777.33/oz 0.1% Nymex Crude (NY) $76.10 -$1.18 U.S. STOCKS
U.S. stock losses deepened Thursday, after central bank officials on both sides of the Atlantic signaled they have more work to do to tame inflation and a batch of fresh data heightened recession fears.
The major U.S. stock indexes started the week higher, then fell Wednesday when the Federal Reserve raised rates by half a percentage point. What spooked investors wasn't the rate increase, which was widely expected, but that the Fed raised its estimates of how high rates may ultimately have to go.
The S&P 500 fell 99.57 points, or 2.5%, to 3895.75 Thursday. The tech-focused Nasdaq Composite dropped 360.36 points, or 3.2%, to 10810.53. The Dow Jones Industrial Average fell 764.13 points, or 2.2%, to 33202.22.
All three indexes closed at their lowest levels since early November. The Dow notched its largest one-day decline since mid-September.
ASIAN STOCKS
Japanese stocks declined in early trade, dragged by falls in tech and electronics stocks, as concerns grow about policy tightening by central banks and the global economic outlook. Toshiba Corp. was up 3.0% following reports that a group-led by Japan Industrial Partners had secured financing to take over the industrial company. Investors were focusing on the debate over Japan's defense spending and potential tax increases, as well as macroeconomic data. The Nikkei Stock Average was down 1.3% at 27677.24.
South Korea's benchmark Kospi fell 0.7% to 2344.54 in early trade, led by losses in internet and electronics stocks. Renewed recession fears following rate increases by the Fed and major European central banks were weighing on sentiment. USD/KRW was 1.2% higher at 1,319.00 on risk aversion. Kakao Corp. fell 3.4%, extending losses to a second day after the state antitrust watchdog filed a complaint against an investment firm owned by its founder.
Hong Kong stocks gained 1.3% to 19618.80 erasing earlier losses. Recent trading patterns suggested profit-taking pressures were rising and a clear growth trend may take more time to form, said Yintai Securities analysts. However, in the longer run, consumption recovery and property stabilization would continue to offer opportunities amid strong policy support, they said, and advised buying on dips for these sectors.
Chinese shares fell in morning trade. The Shanghai Composite Index declined 0.4% to 3156.13, the Shenzhen Composite Index shed 0.5% and the ChiNext Price Index was 0.7% lower. However, property stocks were outperforming the market after Chinese Vice Premier Liu He said Thursday night that Beijing was considering new measures to support the real estate sector, characterizing it as a pillar industry to the economy. Small developers were leading gains, with Gree Real Estate rising by its daily limit of 10% and CCCG Real Estate advancing 5.2%.
FOREX
The European Central Bank's "fairly hawkish language" in signaling further significant interest-rate rises and the start of passive quantitative tightening at Thursday's meeting was positive for the euro, TD Securities said. While the ECB's rate rise of 50 basis points was largely expected, "concrete QT details came as a surprise, and the upward revision to inflation and forward guidance element on future rate hikes is a clear signal that the ECB won't be finished with just another 25bps or 50bps in hikes," it said. This was euro supportive, but with the Fed failing to push back against easing financial conditions there's "no compelling reason" to seek a major dollar reversal, it added.
METALS
Gold rose slightly in early Asian trade. Tighter monetary policy and high inflation were likely to lead to slower global economic growth in 2023, which was good news for gold demand, said ANZ analysts. Any depreciation in the U.S. dollar could also boost the demand for the precious metal, they added, since gold was typically seen as a haven asset. Spot gold was 0.1% higher at $1,777.33/oz.
OIL SUMMARY
Crude oil prices were higher in early Asian trade. Prices fell overnight amid the Federal Reserve's hawkish tilt and the partial restart of the Keystone pipeline, which eased some supply concerns, Saxo Markets said. However, fresh supply concerns could be rising amid tentative signs that key Russian oil exports from a port in Asia were dipping following G-7 sanctions, it said. The front-month WTI futures contract was up 0.3% at $76.36/bbl, while the front-month contract for Brent crude rose 0.4% to $81.56/bbl.
TOP HEADLINES ECB, BOE Raise Rates by Half a Percentage Point U.K. Consumer Confidence Rose to Five-Month High in December U.S. Places Top Chinese Memory Chip Maker on Export Blacklist U.S. Sanctions Russia's Rosbank, Subsidiaries of VTB Bank of Mexico Raises Overnight Interest-Rate Target to 10.5% U.S. Regulator Says It Has Access to Audit Papers of Chinese Companies Retail Sales, Factory Declines Point to Slowing Economy U.S. Jobless Claims Fell by 20,000 Last Week U.S. Business Inventories Up Less Than Expected in October Avaya Veers Toward Bankruptcy Filing American Airlines to Tighten Access to Some Frequent-Flier Status Adobe Fourth-Quarter Revenues Up 10% as Demand Remains Strong BlackRock and State Street Grilled Over ESG Investing Chinese-Backed Lanvin Group Makes U.S. Trading Debut H&M Sales Rise but Lag Behind Rival as Growth Slows Bill Gates-Backed Startup Plans Large Solar Power Component Plant India's Trade Deficit Narrowed to $11.11 Billion in November Singapore's Non-Oil Domestic Exports Slid 14.6% in November
(END) Dow Jones Newswires
12-15-22 2215ET
