Dow Jones Stock Market Today – Indian Morning Briefing: Asian Markets Mostly Higher
GLO(BA)L MARKETS DJIA 33823.45 -210.22 -0.62% Nasdaq 14161.35 121.67 0.87% S&P 500 4221.86 -1.84 -0.04% FTSE 100 7153.43 -31.52 -0.44% Nikkei Stock 29107.07 88.74 0.31% Hang Seng 28766.51 207.92 0.73% Kospi 3268.20 3.24 0.10% SGX Nifty* 15780.50 66.00 0.42% *June contract USD/JPY 110.19-20 -0.04% Range 110.33 110.16 EUR/USD 1.1917-20 +0.10% Range 1.1922 1.1905 CBOT Wheat July $6.390 per bushel Spot Gold $1,783.04 0.6% Nymex Crude (NY) $71.02 -$1.13 U.S. STOCKS
The S&P 500 notched a third consecutive session of declines Thursday, kept under pressure by sliding shares of materials and financial companies.
Markets opened little changed and then drifted between small gains and losses throughout much of the session. While advances in technology shares helped the Nasdaq Composite end higher, both the S&P 500 and Dow Jones Industrial Average finished with losses.
The S&P 500 ended down 1.84 points, or less than 0.1%, to 4221.86. The Dow Jones Industrial Average declined 210.22 points, or 0.6%, to 33823.45 for its fourth straight session of declines. The Nasdaq Composite rose 121.67 points, or 0.9%, to 14161.35, boosted by gains among technology stocks.
The Nikkei Stock Average was up 0.3% at 29095.63, led by gains in electronics stocks thanks partly to hopes for an economic recovery. The government has decided to end the Covid-19 state of emergency for Tokyo and other regions. Among individual movers, Eisai was up 7.9% after its agreement with Bristol Myers Squibb for cancer drug development which included it receiving $650 million from the U.S. drug maker. Broader market index Topix was down 0.4% at 1955.40, dragged by financial stocks following U.S. Treasury yield declines overnight. The Bank of Japan’s policy decision later in the day would be closely watched.
South Korea’s Kospi was up 0.2% at 3272.63 in early trading, led by gains in internet and battery stocks. Expectations for better 2Q corporate earnings were offsetting the downbeat mood in equities after the Federal Reserve’s hawkish turn at its meeting earlier this week. Risk appetite was still fading, with USD/KRW higher at 1,133.20 versus 1,130.40 late Thursday. Internet groups Kakao and Naver climbed 4.1% and 2.6%, respectively, while battery maker Samsung SDI rose 3.9%. Financial and pharmaceutical stocks retreated, with Woori Financial Group falling 2.1% and vaccine maker SK Bioscience slumping 4.1%. Index heavyweight Samsung Electronics edged 0.1% lower.
Hong Kong stocks were higher in morning trade, as the market shows signs of recovery from a broad downturn so far this month. The benchmark Hang Seng Index gains 0.5% to 28712.41. KGI Securities points out that recent strength in the U.S. dollar would cap the momentum of emerging market equities such as Hong Kong stocks. The brokerage expects limited upside in the HSI over the near term. It advises investors to focus on individual stocks with strong share-price catalysts, such as Anta Sports after its latest positive profit alert.
Chinese stocks were mixed in morning trade, as the market slightly weakened from Thursday’s gains. The benchmark Shanghai Composite Index shed 0.1% to 3523.11, after snapping a three-session losing streak yesterday. The Shenzhen Composite Index was up 0.4% at 2369.42, while the ChiNext price Index gained 1.7% to 3241.91. Central China Securities thinks that the market has likely priced in most negative factors after steep losses earlier this week. It reckoned the major indexes would oscillate at current levels in the near term.
Most Asian currencies consolidated against USD, but could weaken as the Fed’s hawkish shift continues to affect financial markets, analysts said. The U.S. central bank signaled two rate increases in 2023 and sharply upgraded its growth and inflation projections for this year. The impulsive nature of the USD Index’s gains, even as U.S. yields decline, suggests a major washout in USD shorts is playing out, Westpac said. The USD Index has room to test the March 2021 highs in coming weeks, it said. The ICE USD Index was flat at 91.86. USD/KRW fell 0.2% to 1,132.46 and AUD/USD rose 0.1% to 0.7556. USD/SGD was little changed at 1.3424.
Gold rebounded in a likely technical upward correction after suffering its biggest one-day percentage drop of the year on Thursday due to the Fed signaling sooner-than-expected interest-rate increases at its FOMC meeting. The precious metal is in a grossly oversold condition, based on the daily chart, Pepperstone said, adding that gold might recover toward the $1,800/oz level. Spot gold was recently up 0.6% at $1,783.04/oz
Oil declined in early Asian trading amid concerns over a surge in Covid-19 cases in the UK. The surge in cases–despite mass vaccinations in the UK.–would likely raise alarm bells over how quickly the rest of Europe will reopen, Oanda said. Meanwhile, Brent crude could be ripe for further profit-taking if there are more positive developments coming out of the U.S.-Iran nuclear deal talks, Oanda said. “Brent crude might not find much support at the $70 level, but a major pullback seems unlikely.” Front-month WTI crude-oil futures and front-month Brent crude oil were both 0.3% lower at $70.83/bbl and $72.86/bbl, respectively.
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(END) Dow Jones Newswires
June 17, 2021 23:15 ET (03:15 GMT)
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