GLOBAL MARKETS DJIA 33874.24 -71.34 -0.21% Nasdaq 14271.73 18.46 0.13% S&P 500 4241.84 -4.60 -0.11% FTSE 100 7074.06 -15.95 -0.22% Nikkei Stock 28913.96 39.07 0.14% Hang Seng 28928.22 111.15 0.39% Kospi 3287.71 11.52 0.35% SGX Nifty* 15775.00 24.5 0.16% *July contract USD/JPY 111.01-02 +0.06% Range 111.12 110.95 EUR/USD 1.1922-25 -0.03% Range 1.1936 1.1920 CBOT Wheat July $6.612 per bushel Spot Gold $1,776.09/oz -0.1% Nymex Crude (NY) $73.22 $0.37 U.S. STOCKS
The tech-heavy Nasdaq Composite claimed a second consecutive record Wednesday while broader stock indexes slipped in a quiet trading session.
With major indexes trading near all-time highs, investors are parsing signals about the path of the economy and the intentions of the Federal Reserve as they consider how much more of a rally might be in store.
The S&P 500 fell 4.60 points, or 0.1%, to 4241.84, off 0.3% from its record close last week. The Dow Jones Industrial Average dropped 71.34 points, or 0.2%, to 33874.24. The Nasdaq Composite gained 18.46 points, or 0.1%, to 14271.73, its 16th record close of 2021.
ASIAN STOCKS
Japanese stocks were lower early in the session as falls in real estate and railway shares countered gains in autos and steel. Real-estate developer Mitsui Fudosan was down 1.8% and West Japan Railway was 1.6% lower while Honda Motor was up 1.6%. Investors were paying attention to any further acceleration in Covid-19 vaccinations in Japan and any signs of an economic recovery. The Nikkei Stock Average was down 0.2% at 28812.61.
South Korea's Kospi hit an intraday record of 3285.23 in early trade, rising 0.3% as auto, construction and internet stocks jumped. Retail investors were driving the gains, pushing the benchmark above its previous record of 3281.96 set last week. Fading market worries about the U.S. Fed's pace of raising interest rates supported investor sentiment and growth stocks were advancing. Auto makers Hyundai Motor and Kia rose 1.9% and 3.1%, respectively. Car-component maker Mando added 1.8%. Airlines retreated, with Juju Air down 3.1%. Index heavyweight Samsung Electronics edged up 0.1%.
Hong Kong's Hang Seng Index gained 0.3% to 28893.02 in early trade, continuing the previous session's strong momentum as the tech sector led gains. Xinyi Solar, the top gainer on the Hang Seng Index, extended a recent uptrend, rising 4.6% and taking on-week gains to 17%. Among Chinese tech stocks, Alibaba Group was 2.0% higher and Meituan rose 2.8%. Consumer-related shares were among laggards on the HSI, with Anta Sports down 3.5% and China Mengniu Dairy 1.5% lower.
Chinese stocks were mixed despite opening higher, as IT and pharmaceutical companies weakened, offsetting financial shares' strength. Jiangsu Hengrui Medicine fell 4.1% and Shenzhen Mindray Bio-Medical Electronics lost 2.5%, while iFlytek, Yonyou Network Technology and Sangfor Technologies declined between 2.0% and 2.5%. Among gainers in the financial sector, CSC Financial rose 4.1%, Citic Securities added 1.5% and China Life Insurance advanced 1.6%. The Shanghai Composite Index was flat at 3567.72, the Shenzhen Composite Index dropped 0.3% and the ChiNext Price Index slipped 0.7%.
FOREX
The dollar strengthened 0.1% against the euro and 0.3% against the yen. The WSJ Dollar Index inched higher. "Last week's FOMC meeting has arguably truncated the risk of a sharp Dollar depreciation driven by high inflation and very low real rates, and should result in a clearer positive correlation between higher domestic inflation news and USD appreciation," Goldman Sachs says. "However, we continue to expect broad Dollar depreciation over the medium term, due to the currency's high valuation, the recovering global economy, and still very accommodative Fed policy."
METALS
Gold inched lower in early Asian trade, after rising overnight as the U.S. dollar receded from about a two-month high. The precious metal may be further pressured if upcoming U.S. durable goods orders data is stronger than expected, OCBC said. Gold may also trade in "a very choppy manner" between $1,760.00/oz and $1,800.00/oz for the rest of the week, Oanda said. Spot gold was recently 0.1% lower at $1,776.09 an ounce.
OIL SUMMARY
Oil was flat in early Asian trade after rising overnight on data showing U.S. crude supplies slid by nearly 8 million barrels last week, marking their fifth weekly drop in a row. The next OPEC+ meeting set for July 1 is under the spotlight, IG says. The oil cartel may gear up output in the months to come, thanks to the rollout of Covid-19 vaccines globally boosting fuel demand as travel normalizes, IG says. "They need to calibrate the pace and magnitude of the hikes however, to prevent hurting prices." The WSJ has reported sources as saying that OPEC and its allies are considering boosting collective output by about 500,000 barrels a day. Front-month WTI and Brent crude were little changed at $73.07/bbl and $75.20/bbl respectively
TOP HEADLINES Yellen Says U.S. Could Breach Debt Limit Deadline in August if Congress Doesn't Act Fed's Bostic Says Bond Buying Drawdown Near, Sees Rate Rise in Late 2022 SEC Considers Shortening 10-Day Window for Investors to Disclose Large Stakes in Companies Infrastructure Negotiators Agree to Framework for Package OPEC Alliance Considers Boosting Production Amid Uneven Recovery BOK Gov. Thinks Rate Increases Could Start This Year Race Between Covid-19 Vaccines and Delta Variant Plays Out in U.K. CDC Advisory Group Says 'Likely Association' Between mRNA Covid-19 Vaccines and Rare Myocarditis Cases Biden Administration Removes Fannie, Freddie Overseer After Court Ruling Keppel, Sembcorp Marine Explore Business Combination, Sources Say BuzzFeed Nears Deal to Go Public Via SPAC, Eyeing Digital-Media Rollup Bill Ackman Makes His Case for Music Warren Buffett to Quit as Gates Foundation Trustee NFL Explores Strategic Options for Media Properties, Including Selling Stakes ViacomCBS Taps Paramount+ Programming Chief in Content Leadership Shift Southwest Airlines CEO Gary Kelly to Step Down in February Shuttered U.S. Virgin Islands Oil Terminal Starts Lender Talks Chinese Covid-19 Gene Data That Could Have Aided Pandemic Research Removed From NIH Database Trump Rule Tightening EB-5 Visa Program Struck Down by Federal Judge
(END) Dow Jones Newswires
06-23-21 2315ET
