GLOBAL MARKETS DJIA 33136.37 -10.88 -0.03% Nasdaq 10386.98 -79.50 -0.76% S&P 500 3824.14 -15.36 -0.40% FTSE 100 7554.09 102.35 1.37% Nikkei Stock 25708.86 -385.64 -1.48% Hang Seng 20434.31 289.02 1.43% Kospi 2240.46 21.78 0.98% SGX Nifty* 18256.00 -50 -0.27% *Jan contract USD/JPY 130.84-85 -0.13% Range 131.41 130.59 EUR/USD 1.0565-68 +0.16% Range 1.0572 1.0541 CBOT Wheat March $7.754 per bushel Spot Gold $1,838.78/oz Unch Nymex Crude (NY) $77.19 -$3.07 U.S. STOCKS
U.S. stocks slipped Tuesday to kick off the new year, pulled lower by investor favorites such as Tesla and Apple.
The S&P 500 fell 15.36 points, or 0.4%, to 3824.14. The index dropped 19% last year, its biggest decline since 2008, the year Lehman Brothers collapsed. The tech-focused Nasdaq Composite dropped 79.50 points, or 0.8%, to 10386.98, and the Dow Jones Industrial Average slipped 10.88 points, or less than 0.1%, to 33136.37.
All three indexes opened the session higher before quickly giving up those gains.
ASIAN STOCKS
Japanese stocks were lower, dragged by weakness in electronics, shipping and pharmaceutical stocks, amid continued uncertainty about policy tightening by central banks and the global economic outlook. Monthly sales figures for December from some companies were in focus before the earnings season starts later this month. The Nikkei Stock Average was down 1.5% at 25709.98.
South Korea's benchmark Kospi fell 0.3% to 2212.30 in early trade, tracking Wall Street's decline overnight. Electric-vehicle battery stocks were leading the dips as the overnight decline in Tesla's shares weighed on investor sentiment. USD/KRW was 0.7% higher at 1,280.50 on renewed risk aversion.
Hong Kong stocks were slightly higher in early trade, extending an upturn from the first trading session of 2023. The benchmark Hang Seng Index was up 1.0% at 20349.41. Chinese property developers led the gains and tech stocks lent further support. Ping An Securities analysts reckoned that the internet sector could continue rising in coming weeks, given the industry earnings' high correlation with China's overall consumption trends, which were expected to further brighten amid China's reopening.
Chinese shares were? broadly lower, as the surge in? local Covid? infections weighs on the economy and dampens the short-term? business outlook. "We see the winter to remain bumpy in China, especially the Covid development is fraught with uncertainties," said Generali Investments. ?Consumption companies and auto makers? led declines while insurance and chip makers were higher. The Shanghai Composite Index opened flat at 3117.57, the Shenzhen Composite Index was 0.1% lower and the ChiNext Price Index was down 0.4%.
FOREX
Most Asian currencies strengthened against the greenback in the morning Asian session as long-term Treasury yields fell, diminishing the allure of USD-denominated fixed-income assets and reducing USD demand. However, gains by regional currencies may be curbed ahead of the FOMC meeting's minutes due later today, analysts said. Given strong consensus among FOMC members for further rate increases, discussions around prospects of recession, a softening labor market and progress on inflation will likely be critical to the outlook, said Stephen Innes, managing partner at SPI Asset Management, in an email. USD/KRW fell 0.3% to 1,275.19 and USD/SGD dropped 0.2% to 1.3422, while AUD/USD was up 0.6% at 0.6766.
METALS
Gold was steady, underpinned by lower Treasury yields that enhanced the appeal of the non-interest-bearing precious metal. Gold should have a strong start to 2023 as much of Wall Street goes defensive, Oanda said, noting safe-haven flows as recession risks rise. Spot gold was little changed at $1,838.78/oz.
OIL SUMMARY
Oil edged lower amid concerns over China's Covid-19 outbreak. Rising Covid-19 cases in China could weigh on oil demand in the immediate term, ING strategists said in a research report. The weakness in the oil market comes despite China's reopening story, which should help the outlook for demand in the medium to longer term, the strategists added. Front-month WTI crude oil futures were 0.4% lower at $76.63/bbl; front-month Brent crude oil futures were 0.3% lower at $81.85/bbl.
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(END) Dow Jones Newswires
01-03-23 2215ET
