GLOBAL MARKETS DJIA 35213.12 -192.38 -0.54% Nasdaq 14945.81 -96.05 -0.64% S&P 500 4470.00 -26.19 -0.58% FTSE 100 7124.98 -25.14 -0.35% Nikkei Stock 27663.85 -78.44 -0.28% Hang Seng 25578.54 162.85 0.64% Kospi 3137.15 8.62 0.28% SGX Nifty* 16680.50 12.5 0.07% *Sept contract USD/JPY 109.98-99 -0.09% Range 110.09 109.96 EUR/USD 1.1754-57 +0.03% Range 1.1761 1.1743 CBOT Wheat Sept $5.092 per bushel Spot Gold $1,794.40/oz 0.1% Nymex Crude (NY) $67.88 -$0.48 U.S. STOCKS
U.S. stocks wobbled Thursday, snapping a streak of gains and backing away from records hit earlier in the week.
Stocks started the day mixed, then steadily gave up ground throughout the afternoon. All but one of the S&P 500's 11 sectors ended the day lower, with energy shares posting among the biggest losses.
The S&P 500 declined 26.19 points, or 0.6%, to 4470.00, bringing an end to its recent streak of gains and retreating from Wednesday's all-time high. The Nasdaq Composite dropped 96.05 points, or 0.6%, to 14945.81, and the Dow Jones Industrial Average lost 192.38 points, or 0.5%, to 35213.12.
ASIAN STOCKS
Japanese stocks were lower in morning trade, dragged by falls in energy and electronics stocks amid caution over the U.S.'s monetary policy outlook. Investors were paying attention to Fed Chair Jerome Powell's speech due later in the day, as well as to political developments in Japan after the ruling Liberal Democratic Party set a date to elect its party head. The Nikkei Stock Average was down 0.7% at 27558.90.
South Korea's benchmark Kospi was down 0.4% at 3116.98 in early trading, dragged by internet, tech and machinery stocks. The overnight decline in U.S. stocks was weighing on sentiment among investors cautiously eyeing Fed Chairman Jerome Powell's speech at Jackson Hole due later in the day. Index heavyweight Samsung Electronics was down 0.3%.
Hong Kong's Hang Seng Index was down 0.3% at 25348.30 in morning trade, in line with broad regional weakness and declines on Wall Street overnight as traders eyed the upcoming Jackson Hole meeting and volatility in Chinese tech shares. Investors were treading cautiously ahead of Jerome Powell's speech, on the lookout for clues on when the Fed will start tapering bond purchases and winding back stimulus, IG said. Declines are broad-based on the HSI. The Hang Seng Tech Index rose 0.5% to 6370.07 after opening flat.
Chinese stocks were higher in early trade after opening lower, helped by gains in auto stocks. China's reassurance that internet platform regulations aren't targeting private and foreign enterprises may help support sentiment, OCBC said. Auto makers were among the best performers, despite negative headlines on the chip supply crunch and weak passenger car sales data out of China. OCBC reckoned the resumption of global manufacturing as the pandemic eases could boost demand for Chinese goods in the medium term. The Shanghai Composite Index gained 0.3% to 3511.23, the Shenzhen Composite Index added 0.1% to 2437.70, and the ChiNext Price Index--a measure for emerging industries and startups--rose 0.1% to 3267.67.
FOREX
G-10 and Asian currencies consolidated against USD in morning Asian trading. However, currencies such as JPY, EUR, GBP, CHF, THB, MYR and PHP may weaken due to potential USD short-covering ahead of Fed Chair Powell's speech later today, DBS said. Market participants think they may have been too hasty in brushing aside the Jackson Hole symposium as a non-event, DBS added. The Fed's Kaplan became less concerned about Covid-19's Delta variant and dropped his misgivings over a taper announcement in September, and his call was backed by the Fed's George, who cited strong U.S. jobs data, DBS said. USD/KRW was little changed at 1,170.56 and USD/SGD was steady at 1.3534.
METALS
Gold edged higher in early Asian trade, as geopolitical tensions spurred safe-haven flows. These flows came after Kabul explosions led to the loss of Afghans and U.S. troops, Oanda said. However, gold seemed stuck in a wait-and-see mode ahead of Fed Chair Powell's speech at the Jackson Hole symposium, which will likely offer hints on how and when the central bank will scale back monetary stimulus, Oanda added. Spot gold was 0.1% higher at $1,794.40/oz.
OIL SUMMARY
Oil prices rose in Asia on concerns a tropical storm could disrupt supply. The storm, which is presently in the Caribbean, is poised to move into the U.S. Gulf Coast over the weekend at hurricane intensity, ING said. More than 50% of U.S. refining capacity is in the Gulf Coast so there are risks of large supply disruptions for refined fuels, ING said. Front-month WTI crude oil futures rose 0.6% to $67.80/bbl. Front-month Brent crude oil futures gained 0.6% to $71.47/bbl.
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(END) Dow Jones Newswires
08-26-21 2315ET
