GLOBAL MARKETS DJIA 35484.97 220.30 0.62% Nasdaq 14765.14 -22.95 -0.16% S&P 500 4447.70 10.95 0.25% FTSE 100 7220.14 59.10 0.83% Nikkei Stock 28139.21 68.70 0.24% Hang Seng 26634.10 -26.06 -0.10% Kospi 3222.42 1.80 0.06% SGX Nifty* 16315.50 21.5 0.13% *Aug contract USD/JPY 110.39-40 -0.04% Range 110.46 110.31 EUR/USD 1.1742-45 +0.03% Range 1.1748 1.1735 CBOT Wheat Sep $7.270 per bushel Spot Gold $1,749.06/oz -0.1% Nymex Crude (NY) $69.26 $0.97 US STOCKS
Shares of manufacturers and banks led the U.S. stock market mostly higher following new data showing consumer prices rose further last month.
Caterpillar, Home Depot and Goldman Sachs’s stocks all rose, helping to lift the Dow Jones Industrial Average roughly 0.6% as of the 4 p.m. close of trading in New York. The S&P 500 rose 0.3%.
Tech stocks lagged behind, meanwhile, bringing the Nasdaq Composite down 0.2%.
Investors gravitated toward stocks that are more closely tied to the economic cycle, such as banks and manufacturers, after new data showed consumer prices rose again last month. However, unlike previous months, the data was largely in line with expectations.
Japanese stocks were higher, led by gains in shippers and energy stocks, as hopes grew for an earnings recovery. Investors remained focused on earnings as the season winds down. Toshiba Corp. is scheduled to report its results later in the day. The Nikkei Stock Average was 0.7% higher at 28258.90.
South Korea’s Kospi was 0.1% higher at 3223.39 in mixed early trading, as gains in telecom and auto stocks offset losses in the electronics and biotech sectors. The benchmark was flitting between tiny gains and losses after opening lower, as investors weighed Covid-19 worries against recovery hopes driven by solid exports.
Hong Kong shares moved lower after swinging between mild gains and losses at the open. China’s regulatory crackdown seems to be far from over, with the next target reportedly being the online insurance industry, IG said. This likely signals Chinese authorities’ ongoing stance that they are willing to forgo short-term economic impact to drive longer-term reforms, it said. The Hang Seng Index was 0.3% lower at 26753.59.
Chinese stocks fell slightly in early trade, as gains in software companies were outweighed by losses among steelmakers and coal miners. The benchmark Shanghai Composite Index lost 0.3% to 3522.72 and the Shenzhen Composite Index was 0.3% lower at 2480.04, The ChiNext Price Index–a measure for emerging industries and startups–fell 0.7% to 3413.52.
Asian currencies were mixed against USD, as easing worries over U.S. inflation offset continued prospects for Fed tapering. The CPI data released overnight assuaged investors that inflation isn’t running away, said Commerzbank. However, there were more Fed speakers overnight, with one of them saying the time has come to dial back stimulus given expectations of continued employment gains and strong demand, Commerzbank added. USD/KRW rose 0.3% to 1,158.04, while USD/JPY edged 0.1% lower to 110.33 and AUD/USD was down 0.1% at 0.7366.
Gold edged lower in a likely technical correction. The precious metal rose strongly overnight, driven by data showing that U.S. inflation moderated, easing fears the Fed would scale back its monetary stimulus measures, ANZ said. A subsequently weaker USD also helped to spur investor appetite for gold, ANZ added. Spot gold was down 0.1% at $1,749.06/oz.
Oil was slightly higher in early Asian trade. Major Arab Gulf and U.S. producers supplied less-than-expected levels of crude in July, but concerns over Covid-19 flare-ups in crude-importing markets continue to weigh, Goldman Sachs said. It estimates global oil demand to decrease to 97.8 million barrels a day in August and September compared with July’s 98.4 million b/d. “Our base case remains that the Delta wave will impact demand–including in China–for only two months,” it said, and expected Brent prices to rise to $80/bbl in 4Q. Front-month Brent gained 0.3% to $71.65/bbl while front-month WTI was 0.2% higher at $69.37/bbl.
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(END) Dow Jones Newswires
August 11, 2021 23:15 ET (03:15 GMT)
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