GLOBAL MARKETS DJIA 30530.25 641.47 2.15% Nasdaq 11069.30 270.95 2.51% S&P 500 3764.79 89.95 2.45% FTSE 100 7152.05 30.24 0.42% Nikkei Stock 26260.58 14.27 0.05% Hang Seng 21424.26 -135.33 -0.63% Kospi 2372.59 -36.34 -1.51% SGX Nifty* 15592.50 -30 -0.19% *Jun contract USD/JPY 136.19-20 -0.31% Range 136.72 136.09 EUR/USD 1.0510-13 -0.21% Range 1.0545 1.0503 CBOT Wheat July $9.752 per bushel Spot Gold $1,829.05/oz -0.2% Nymex Crude (NY) $110.65 $1.09 US STOCKS
US stocks rallied off their worst week since March 2020, offering investors a reprieve from a recent stretch of whipsaw trading that had sent stocks and cryptocurrencies falling.
The S&P 500 gained 2.5% while the Dow Jones Industrial Average added 2.2%. The Nasdaq Composite Index jumped 2.5%. Investors’ appetite for riskier assets followed a tumultuous week in the markets, sparked by the Federal Reserve’s approval of a 0.75-percentage-point interest-rate increase, the largest since 1994.
Meanwhile, investors are awaiting further commentary from Federal Reserve Chairman Jerome Powell when he testifies before Congress on both Wednesday and Thursday.
Japan’s Nikkei Stock Average was 0.6% higher at 26395.12 in morning trade, supported by gains in US stocks overnight on stronger risk-on sentiment. JPY weakened against USD to a 1998 low, and was last at 136.32 versus 135.13 as of Tuesday’s Tokyo stock-market close.
South Korea’s benchmark Kospi fell 0.3% to 2401.10 in mixed early trade after opening higher. Wall Street’s gains overnight helped buoy investor sentiment but persistent fears about inflation and slower growth still weighed.
Hong Kong stocks were slightly lower, showing signs of weakness after a two-day winning streak earlier this week. The benchmark Hang Seng Index shed 0.4% to 21479.69. KGI Securities analysts said the Hong Kong market is likely to remain under pressure in the near term, given a strong US dollar, rising US interest rates and worries over a global economic slowdown. While some support can come from Beijing’s stimulus measures, KGI sees limited upside for the HSI for now.
Chinese shares were mixed after opening higher, tracking other Asian equities as investors weighed a positive lead from the US overnight against worries about inflation. The Shanghai Composite Index declined 0.1% to 3305.01, the Shenzhen Composite Index was flat at 2147.59 and the ChiNext Price Index gained 0.8% to 2713.69. “The overnight rebound in Wall Street may provide a positive backdrop for Asian equities but gains may seem capped by some wait-and-see sentiments, heading into Fed Chair Jerome Powell’s comments today,” IG market analyst Yeap Jun Rong said in a note.
The dollar weakened against the euro and strengthened against the yen as the stock market rallied overnight and investors took on some risk. Corpay Chief Market Strategist Karl Schamotta noted that copper and iron ore prices, often considered bellwethers for global growth, fell sharply yesterday. They’ve tumbled over the last month as the Chinese property sector continues to weaken, he said. “Against this backdrop, demand for safe haven assets–like the dollar–looks likely to remain relatively strong.”
Gold prices fell after US stocks rallied overnight in a snapback from last week’s selloff. However, the precious metal may be supported by safe-haven demand in the near term, as lingering economic concerns could still weigh on equity markets. “Despite the noise of the past week, [gold] remains anchored in the middle of its one-month range,” Oanda senior market analyst Jeffrey Hally said in a note. Hally puts resistance for gold at $1,860 and support at $1,805. Spot gold was recently 0.2% lower at $1,829.05/oz.
Oil prices declined after rising overnight due to worries over tight global supplies. “Investors become jittery that the Fed will feel compelled to forcefully to high headline further inflation and consumer inflation expectations if energy prices rise managing,” SPI Asset Management partner Stephen Innes said in an email. However, near-term sentiment may be supported by the prospect of the temporary suspension of the US federal gasoline tax, “which would likely put a smile on US travellers’ faces, hence increasing demand during the summer driving season,” he added. Front-month WTI crude oil futures were 1.4% lower at $108.05/bbl, while Brent fell 1.2% to $113.27/bbl.
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(END) Dow Jones Newswires
June 21, 2022 23:16 ET (03:16 GMT)
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