GLOBAL MARKETS DJIA 34049.46 238.06 0.70% Nasdaq 13004.85 165.56 1.29% S&P 500 4296.12 24.34 0.57% FTSE 100 7380.54 -141.14 -1.88% Nikkei Stock 26726.50 135.72 0.51% Hang Seng 19967.43 98.09 0.49% Kospi 2668.67 11.54 0.43% SGX Nifty* 17095.00 100.0 0.59% *April contract USD/JPY 127.72-73 -0.32% Range 128.24 127.35 EUR/USD 1.0730-33 +0.17% Range 1.0736 1.0707 CBOT Wheat May $10.620 per bushel Spot Gold $1901.48/oz 0.2% Nymex Crude (NY) $99.11 -$2.96 US STOCKS
US equities rose as government bond yields retreated and investors took the opportunity to buy beat tech stocks and other growth stocks.
The S&P 500 rose 0.6% in a volatile session. The Dow Jones Industrial Average gained 0.7% after suffering its worst session since October 2020 on Friday. The technology-focused Nasdaq Composite Index, which has underperformed other indexes this year, added 1.3%. Shares of Twitter rose 5.6% after the social media company accepted Elon Musk’s $44 billion takeover deal.
A drop in bond yields signaled to investors that the Federal Reserve might not raise interest rates as aggressively as expected, investors said.
“Rates had weighed against the market,” said Jack Ablin, chief investment officer of Cresset Capital. “Now we are seeing a reversal of that trend.”
Investors fear that the strict policies put in place by China to fight Covid-19 could further disrupt global supply chains.
ASIAN STOCKS
Japanese equities were marginally higher, driven by gains in real estate and electronics stocks, as worries about borrowing costs eased. Financial stocks underperformed after US Treasury yields fell overnight. Profits were the focus. The Nikkei Stock Average was up 0.2% at 26,633.39.
South Korea’s Kospi rose 0.4% to 2667.28 in early trade, driven by gains in biotech and auto stocks. Growth stocks rose as some investors look for bargains after the benchmark’s losses for two consecutive sessions. The country’s GDP grew 0.7% quarter on quarter in 1Q, much weaker than in 4Q, but slightly stronger than market forecasts of 0.6% growth.
Hong Kong shares were higher in early trading as tech companies advanced, sending the benchmark Hang Seng Index up 1.2% to 20099.57. The Hang Seng TECH index was up 4.3% at 3967.95. Hong Kong shares rose amid a technical rebound, with the HSI index likely to hover around 20,000, KGI Securities analysts said in a note. They added that the technology sector was supported by the strong performance of the US ADR market overnight. Still, China’s quarantine measures could weigh on sentiment and limit gains, KGI analysts added.
Chinese stocks were higher in choppy morning trading after falling on Monday amid concerns over the Covid-19 outbreaks in China. The Shanghai Composite Index rose 0.2% to 2933.90, the Shenzhen Composite Index was flat at 2169.16, while the ChiNext Price Index gained 0.1% to 2170.35 . Sentiment could be weighed down in the short term, amid fears of a potential Beijing lockdown that could lead to more supply chain disruptions, exacerbate already runaway inflation and slow global growth, analyst Stephen Innes said. of SPI Asset Management, in a note. Bank stocks were higher.
FOREX
The yen strengthened against the G-10 and Asian currencies during the Asian morning session amid concerns over the possibility of further Covid-19 shutdowns in China. Fears of a potential widening of lockdowns in Beijing rattled risky assets overnight, said CMC Markets analyst Tina Teng. Combined with the Russian-Ukrainian conflict, these blockages are causing major global supply chain problems, heightening fears of impending global economic stagflation, Teng added. USD/JPY slipped 0.5% to 127.53, AUD/JPY fell 0.4% to 91.62 and SGD/JPY fell 0.3% to 92.92.
METALS
Gold rose at the start of Asian trade, reversing an overnight decline. The precious metal could remain in high demand as an inflation hedge and safe haven, buoyed by a continued rise in inflation as well as Russia’s war on Ukraine, Commerzbank analyst Carsten said. Fritsch in a note. “The simultaneous massive rise in bond yields (…) could not stop the rise in the price of gold, but only slowed it down,” the analyst said. Spot gold was up 0.2% at $1,901.48 an ounce.
OIL SUMMARY
Oil prices were higher at the start of Asian trade, reversing declines overnight. WTI crude fell below $100 a barrel on Monday, while Brent settled around 4% lower. There are still concerns that Covid-19 outbreaks in China, the world’s biggest importer of crude, could weigh on demand, ANZ analysts said in a note. Beijing’s zero Covid policy could delay any recovery in demand, they said. EU-Russia relations also remain a focus after French President Macron called for more sanctions against Moscow, including a ban on oil and coal imports, SPI Asset Management analyst Stephen Innes said in a rating. First-month WTI and Brent both rose 0.3% to $98.82/bbl and $102.65/bbl, respectively.
TOP HEADLINES U.S. Stocks Finish Volatile Session With Gains Bank of Canada's Macklem Says Half-Point Rate Rise Will Be in Play in June Decision Senate Tees Up Votes on Biden's Fed Nominees South Korea's Economic Growth Decelerates in First Quarter The $67 Billion Tariff Dodge That's Undermining U.S. Trade Policy Countries Ramp Up Rules Regarding ESG Disclosure Chinese Markets Tank as Investors Worry About Covid-19 Lockdowns Judge Holds Trump in Contempt, Levies Fines for Noncompliance Erdogan Critic Given Life Sentence in Turkey Lunch With Warren Buffett Goes on Auction Block One Last Time U.S. Wants to See Russia Weakened, Says Defense Secretary Lloyd Austin After Ukraine Visit U.S. Nears One Million Covid-19 Deaths Beijing Orders Citywide Covid-19 Testing as Fears of Lockdown Spark Panic-Buying Twitter and Elon Musk Strike $44 Billion Deal General Motors to Produce an Electric Corvette Whirlpool Says Appliance Demand Is Waning, as Costs Mount States Challenge Coin Dealer's 'Preemptive' Bankruptcy Filing Logistics Company Toll Reaches Settlement With Regulator Over Alleged Sanctions Violations Boeing Aims for Defense Buildup
(END) Dow Jones Newswire
April 25, 2022 11:15 p.m. ET (03:15 GMT)
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