GLOBAL MARKETS DJIA 33597.92 1.58 0.00% Nasdaq 10958.55 -56.34 -0.51% S&P 500 3933.92 -7.34 -0.19% FTSE 100 7489.19 -32.20 -0.43% Nikkei Stock 27423.96 -262.44 -0.95% Hang Seng 19151.43 336.61 1.79% Kospi 2364.65 -18.16 -0.76% SGX Nifty* 18659.00 -12.50 -0.07% *Dec contract USD/JPY 136.95-96 +0.25% Range 137.04 136.26 EUR/USD 1.0503-06 -0.02% Range 1.0517 1.0495 CBOT Wheat Dec $7.270 per bushel Spot Gold $1,787.41/oz 0.1% Nymex Crude (NY) $72.38 -$1.87 US STOCKS
U.S. stocks wavered, with investors continuing to worry that stronger-than-expected economic data will prompt U.S. central bankers to hold interest rates higher for longer, potentially weighing on the economy.
The S&P 500 fell 0.2%, suffering its fifth consecutive day of losses. The tech-focused Nasdaq Composite Index fell 0.5%. The Dow Jones Industrial Average was flat.
A lack of clarity in how central bankers may respond to economic data has led to choppier performance in the stock market, said Edward Park, chief investment officer at U.K. investment firm Brooks Macdonald.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in financial and auto stocks, as concerns continue about the U.S. interest-rate outlook. Investors were focusing on economic data and their implications for monetary policy taken by the world's major central banks. The Nikkei Stock Average was down 0.5% at 27550.75.
South Korea's benchmark Kospi edged 0.1% lower to 2379.64 in early, mixed trade. Investors were cheering China's easing of pandemic restrictions, but were worried about the U.S. Fed's policy tightening and stubborn inflation that could prompt a recession. Gaming and fintech stocks advanced, while steel and defense shares retreated. Foreigners were net sellers, while retail and institutional investors remained net buyers.
Hong Kong's Hang Seng Index rose 1.1% to 19019.81 in early trade, rebounding from losses on Wednesday, as casino and consumer stocks gained. "Chinese equities have seen some profit-taking after its recent optimism," IG analyst Jun Rong Yeap said in an email. Investors continued to weigh the outlook for central banks' monetary tightening against Beijing's easing of Covid-19 measures.
Mainland Chinese shares were lower in early trade after Beijing eased several quarantine and testing requirements on Wednesday, signaling another step toward reopening. However, Nomura economists caution that "China does not appear to be well prepared for a massive wave of Covid infections, and it may have to pay for its procrastination on embracing a 'living with Covid' approach." The Shanghai Composite Index and the ChiNext Price Index were each down 0.1%, while the Shenzhen Composite Index was 0.2% lower.
FOREX
The NZD/USD traded at 0.6357, benefiting from the USD drifting lower on the back of much lower bond yields. "Weaker US unit labor costs seemed to be the catalyst for slide in both bond yields and the USD," Australia and New Zealand Banking Group said. "So the focus remains global, and while we are somewhat skeptical about the sustainability of lower U.S. bond yields given Fed rhetoric, markets clearly want to move onto the next cycle, and are fading end-of-cycle factors and hawkish Fed overtones." That speaks to volatility going into and in the wake of next week's Fed meeting, ANZ said.
METALS
Gold was slightly higher in early Asian trade. Gold could continue to perform well due to stronger demand for safe havens amid rising recession risks, said Oanda senior market analyst Edward Moya in a note. The precious metal is likely to trade back and forth around the $1,800/oz level until next week's FOMC decision, the analyst added. Spot gold was up 0.1% at $1,787.41/oz.
OIL SUMMARY
Crude-oil prices were higher in early Asian trade after falling in the previous session. "With the tug-of-war between a worsening Covid situation in China and increased reopening expectations, oil markets could trade in yo-yo mode," said Stephen Innes, the managing partner of SPI Asset Management in a note. While market expectations that China could gradually reopen are continuing to gain, rising Covid-19 infection numbers could drag on prices, he said. The front-month WTI futures contract rose 0.6% to $72.57/bbl, while Brent crude was also up 0.6% at $77.66/bbl.
TOP HEADLINES SEC to Float Proposals to Get Small Investors Better Stock-Trade Prices Japan's Third-Quarter GDP Contracted at Slower Pace EU Officials Pursue Additional Sanctions Against Russia Over Ukraine War U.S. Consumer Borrowing Continues to Grow at Solid Rate in October U.S. Oil Inventories Fall as Refinery Activity Remains Strong Canada Proposes New Powers in Foreign-Investment Reviews Trump Legal Team Finds Two More Classified Documents Congressional Negotiators Start to Run Out of Time on Full-Year Spending Bill Georgia Win Ends Headaches of 50-50 Senate for Democrats Google Combines Maps and Waze Teams in Restructuring Move Tensions Grew at Salesforce Before Leadership Change FTX Hires Forensic Team to Probe Money Trail GameStop CEO Says Open to Pursue Acquisitions After Earnings Miss
(END) Dow Jones Newswires
12-07-22 2215ET
