GLOBAL MARKETS DJIA 32969.23 59.64 0.18% Nasdaq 12431.53 50.23 0.41% S&P 500 4140.77 12.04 0.29% FTSE 100 7471.51 -16.60 -0.22% Nikkei Stock 28468.23 154.76 0.55% Hang Seng 19268.74 -234.51 -1.20% Kospi 2468.82 21.37 0.87% SGX Nifty* 17754.00 57.0 0.32% *Sep contract USD/JPY 136.75-76 -0.27% Range 137.20 136.61 EUR/USD 0.9984-87 +0.19% Range 0.9994 0.9958 CBOT Wheat Sep $7.950 per bushel Spot Gold $1,752.02/oz 0.1% Nymex Crude (NY) $95.24 $1.50 US STOCKS
U.S. stocks edged higher Wednesday, snapping a three-day losing streak that was fueled by worries about the path forward for interest rates.
The S&P 500 rose 0.3%, while the Dow Jones Industrial Average was up 0.2%. The Nasdaq Composite climbed 0.4%.
"The market is in this 'treading water' phase right now," said Brian Price, head of investment management at Commonwealth Financial Network. "It's hovering near flat in anticipation of [Fed Chairman] Powell's speech."
Stocks came under pressure in recent days from a series of data releases that showed contractions in the manufacturing and services sectors. Also, Fed officials have signaled that interest rates are likely to continue increasing to fight inflation. The central bank begins its annual economic policy symposium in Jackson Hole on Thursday, and Powell is set to speak Friday.
"We still have the same problems we need to solve: shortages of labor, shortages of energy and other commodities, and the headwinds of a tightening cycle," said Giorgio Caputo, a senior portfolio manager at J O Hambro Capital Management.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 0.3% at 28404.70, led by gains in tech and pharmaceutical stocks, as bargain-hunting supported the market despite caution over the Fed's tightening campaign. The index had declined for five consecutive sessions. Few big-cap stocks were rising or falling more than 3.0%, reflecting investors' caution ahead of Fed Chair Jerome Powell's speech on Friday.
South Korea's benchmark Kospi rose 0.5% in early trade ahead of the central bank's rate decision. Shipping, electronics and retail stocks were among the top gainers. USD/KRW was a tad lower at 1,341.50, versus 1,342.10 late Wednesday. The Bank of Korea raised the benchmark seven-day repurchase rate by 25 basis points to 2.50% on Thursday, as expected.
Trading in Hong Kong shares will start at 13:00 local time after the morning session was canceled due to a typhoon alert.
Chinese shares were higher in early trade after Wednesday's strong selloff. The selloff was partly weighed by loss in market confidence that the PBOC's recent policy rate cuts will be able to help lift the economy, said IG market strategist Yeap Jun Rong in a note. "The State Council has followed up with a slew of policy measures yesterday and while it may aid to underpin sentiments, previous pledge of policy support has not delivered a sustained recovery," he added. The benchmark Shanghai Composite Index was up 0.3% at 3226.06, the Shenzhen Composite rose 0.5% to 2171.02 and the ChiNext Price Index was 0.2% higher at 2685.01.
FOREX
Asian currencies strengthened against the USD in the Asian morning session amid risk-on sentiment driven by gains in regional equity markets. The onus is on USD bulls to defend the greenback's recent strength, said Yeap Jun Rong, a market strategist at IG, in an email. Markets are pricing in expectations of a hawkish tone in Fed Chair Powell's speech at the Jackson Hole symposium, the strategist said. If the speech contains no surprises or brings up some consideration of rate cuts ahead, this could spur some unwinding of stronger USD bets, the strategist added. USD/SGD dropped 0.2% to 1.3913 and USD/KRW fell 0.3% to 1,336.53, while AUD/USD rose 0.3% to 0.6939.
METALS
Gold edged higher in early Asian trade and is likely to be rangebound ahead of the three-day Jackson Hole symposium of central bankers, which begins later today. The precious metal has carved out a pre-Jackson Hole range of $1,740/oz to $1,780/oz zone, Oanda senior market analyst Edward Moya said in an email. Fed Chair Powell's speech could give traders enough clues on whether the rise in Treasury yields will continue. This will determine what happens with gold, Moya said. Spot gold was up 0.1% at $1,752.02/oz.
OIL SUMMARY
Oil rose in the early Asian session, buoyed by prospects that a U.S.-Iran deal may not materialize. There are reports that the recently negotiated nuclear deal, which would lead to the return of around one million barrels/day of oil from Iran to the global markets within a year, has been rejected by the U.S., said Bart Melek, head of Commodity Strategy at TD Securities, in a research report. This news comes alongside leaked statements from OPEC+ officials that they are ready to cut supply, Melek added. Front-month WTI crude oil futures were 0.4% higher at $95.24/bbl and Brent crude oil futures gained 0.5% to $101.71/bbl.
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(END) Dow Jones Newswires
08-24-22 2315ET
