Indian Morning Briefing: Asian markets mostly down after overnight declines on Wall Street
GLOBAL MARKETS DJIA 31072.61 -215.65 -0.69% Nasdaq 11360.05 -92.37 -0.81% S&P 500 3830.85 -32.31 -0.84% FTSE 100 7223.24 64.23 0.90% Nikkei Stock 26984.68 196.21 0.73% Hang Seng 20655.13 -191.05 -0.92% Kospi 2366.51 -8.74 -0.37% SGX Nifty* 16174.00 -116.0 -0.71% *Jul contract USD/JPY 138.16-17 +0.02% Range 138.39 138.05 EUR/USD 1.0131-34 -0.12% Range 1.0155 1.0121 CBOT Wheat Sept $8.126 per bushel Spot Gold $1,706.70/oz -0.1% Nymex Crude (NY) $102.39 $4.80 US STOCKS
US stocks fell as investors scrutinized another round of big business earnings reports and looked forward to a week of key central bank meetings.
The shares were in the green for much of the session before falling in the afternoon. The S&P 500 closed down 0.8%. The blue-chip Dow Jones Industrial Average lost 0.7%, while the technology-focused Nasdaq Composite Index fell 0.8%.
Major financial firms kicked off a bumper week of earnings. Bank of America ended little changed after saying second-quarter profits fell 32%. Goldman Sachs rose 2.5% after reporting better-than-expected earnings. Some traders attributed the afternoon market decline to a report that Apple plans to slow hiring next year, which was first reported by Bloomberg and weighed on tech stocks. The tech giant lost 2.1%.
Japan’s Nikkei Stock Average advanced 0.4% to 26,904.85, driven by gains in autos, electronics and shipping stocks, as hopes continued for a recovery profits after the Covid-19 pandemic. Investors are focused on the earnings season which is expected to start later this week.
South Korea’s benchmark, the Kospi, fell 0.4% to 2367.03 in early trade, dragged down by losses in electronics and airline stocks. Wall Street’s overnight declines weighed on investor sentiment. Apple supplier LG Innotek fell after a report that the iPhone maker plans to cut hiring and spending next year. Memory chip makers also pulled back on profit taking after two consecutive sessions of strong gains.
Hong Kong’s Hang Seng index fell 0.7% to 20,698.95 on concerns that Chinese financial institutions extending credit to eligible developers to complete unfinished projects may take time to pay off. , analysts said. The Chinese government has asked these institutions to provide more support, given a growing boycott of mortgage payments over the delayed delivery of unfinished homes, but it could take time to resolve the issue, KGI Research said in a statement. morning comment. The Hang Seng TECH index slipped 0.7% to 4540.26.
Chinese stocks fell in morning trading, weighed down by auto stocks. The benchmark Shanghai Composite Index fell 0.2% to 3270.52, the Shenzhen Composite Index fell 0.2% to 2187.64 and the ChiNext Price Index fell 0.7 % to 2780.01. Auto stocks were lower amid fears the rising number of Covid-19 cases in China could hurt demand for cars and affect production. The real estate market will likely be the focus of concern, following reports that China may allow suspension of mortgage payments on stalled property projects amid protests, Commerzbank analysts said in a note. As the real estate sector accounts for at least 20% of GDP, its stabilization will remain an important determinant of China’s economic health in 2H, they added.
Asian currencies were mixed against the US dollar during the Asian morning session amidst caution. Investors couldn’t shake off the tough environment in a rising interest rate environment, DBS Group Research senior forex strategist Philip Wee said in a research report, noting Wall Street’s losses from the day to day. US dollar strength appears to be waning, but there is no rush to other currencies, Wee added. USD/KRW fell 0.2% to 1,316.60, USD/SGD edged up 0.1% to 1.3975 and AUD/USD gained 0.2% to 0, 6826.
Gold prices were lower at the start of Asian trading, after rising overnight on a weaker dollar. “Overall, gold price action continues to be uninteresting with limited scope rallies, while declines, when they occur, are much larger and faster,” said Jeffrey Halley, senior market analyst at Oanda, in a note. “Gold’s fate this week hinges on hopes that the rally in investor sentiment seen elsewhere will inspire further US dollar weakness,” he said. Spot gold fell 0.1% to $1,706.70 an ounce and is down 5.6% so far this month.
Oil prices fell after surging above $100 a barrel overnight following steep losses last week. Oil could be supported for now as concerns over a response from Saudi Arabia and OPEC seem unfounded following President Biden’s visit to Saudi Arabia, which offered no concessions, said Stephen Innes, managing partner of SPI Asset Management. “OPEC has limited spare capacity and is unlikely to get going, especially after the colossal correction in oil prices,” he said in a market commentary. The short-term market will focus on the next OPEC+ meeting, scheduled for August 3. First-month WTI and Brent crude oil futures recently fell 0.6% to $101.95/bbl and $105.64/bbl, respectively.
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(END) Dow Jones Newswire
July 18, 2022 11:15 p.m. ET (03:15 GMT)
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