GLOBAL MARKETS DJIA 32909.59 -154.02 -0.47% Nasdaq 12381.30 -0.27 0.00% S&P 500 4128.73 -9.26 -0.22% FTSE 100 7488.11 -45.68 -0.61% Nikkei Stock 28336.68 -116.07 -0.41% Hang Seng 19296.99 -206.26 -1.06% Kospi 2437.36 2.02 0.08% SGX Nifty* 17628.50 -47.5 -0.27% *Sept contract USD/JPY 136.89-90 +0.11% Range 137.02 136.62 EUR/USD 0.9950-53 -0.19% Range 0.9975 0.9932 CBOT Wheat Sept $7.826 per bushel Spot Gold $1,745.85/oz -0.1% Nymex Crude (NY) $93.61 $3.25 US STOCKS
U.S. stocks edged lower in quiet trading as investors weighed uncertainty over the path of interest-rate increases.
The S&P 500 lost 0.2%, while the Dow Jones Industrial Average fell 0.5%. The tech-heavy Nasdaq Composite finished little changed.
The stock market has rallied from its June low as corporate earnings reports came in better than expected and signs of easing inflation inspired hopes that the Federal Reserve would slow the pace of rate increases.
But major indexes faltered in recent days as hawkish comments from central bank officials returned investors' focus to the possibility that aggressive rate increases will continue.
"The euphoria has really fizzled out for equities," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown in London. "The clamor of voices has become louder from central bank policy makers saying, 'Hold on, we aren't out of the woods yet.'"
All eyes will be on a speech Friday by Fed Chairman Jerome Powell in Jackson Hole, Wyo. Mr. Powell is expected to provide clues on the Fed's plans for combating inflation that remains well above the central bank's target.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 0.2% at 28497.72 in early trade as gains in energy and trading-house stocks helped offset losses in airline and pharmaceutical stocks.
South Korea's Kospi rose 0.7% to 2452.58 in early trade, led by gains in energy and defense stocks. Bargain hunting kicked in to pull the benchmark higher after a five-session losing streak. The won regained ground against the greenback, supporting risk appetite. USD/KRW fell 0.4% to 1,339.50.
Hong Kong's Hang Seng Index fell 1.2% to 19263.24 after swinging between gains and losses at the open. The outlook for China's economic recovery has become cloudier, despite Beijing's efforts to boost confidence, said Tina Teng, markets analyst at CMC Markets, in an email. However, Chinese tech shares could have an opportunity to bounce since most companies gave a better outlook for 2H, the analyst added.
Chinese shares were mixed in early trade after opening higher, amid concerns over the ongoing drought and heat wave in the country. The benchmark Shanghai Composite Index rose 0.1% to 3279.45, the Shenzhen Composite fell 0.2% to 2222.98 and the ChiNext Price Index was 0.4% lower at 2768.40. Services sector may be in focus, following Vice Commerce Minister Sheng Qiuping's comments that China is facing growing challenges in international services trade due to Covid-19 outbreaks that has curbed mobility and softened external demand, UOB analysts said in a note. China's services trade deficit hit $7.9 billion in June, the highest since December 2021, according to data by the State Administration of Foreign Exchange, they noted.
FOREX
Most Asian currencies weakened against USD in the morning Asian session amid risk-off sentiment spurred by losses in regional equity markets and in U.S. stock futures. A wait-and-see stance could play out as market participants await further clues from this week's Jackson Hole symposium to drive larger movements in financial markets, said Yeap Jun Rong, market strategist at IG, in an email. USD/KRW edged 0.1% higher to 1,340.57 and USD/SGD rose 0.2% to 1.3945 while AUD/USD was down 0.4% at 0.6904.
METALS
Gold edged lower in the early morning Asian session ahead of the Jackson Hole symposium later this week. Given that the U.S. central bank may use this platform to push back against the notable easing in financial conditions sparked by Fed Chair Powell's past remarks, precious metals prices have begun to decline, TD Securities strategists said in a research report. This also fits with the recent reduction in market expectations for Fed rate cuts to immediately follow the rate-increase cycle, the strategists added. Spot gold was down 0.1% at $1,745.85/oz.
OIL SUMMARY
Oil futures edged lower in a likely technical correction after WTI oil prices finished overnight at their highest level since Aug. 11. But the oil outlook might brighten, analysts said. A weakening U.S. economy should be bad news for oil; however, soft economic data released Tuesday suggest OPEC+ could justify output reductions soon, said Oanda senior market analyst Edward Moya in an email. The oil market will probably remain tight whether business activity continues to weaken sharply or if economic growth remains choppy, Moya added. Front-month WTI crude oil futures were 0.2% lower at $93.53/bbl and Brent crude oil futures were down 0.2% at $100.01/bbl.
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(END) Dow Jones Newswires
08-23-22 2315ET
