GLOBAL MARKETS DJIA 33546.32 -7.51 -0.02% Nasdaq 11144.96 -38.70 -0.35% S&P 500 3946.56 -12.23 -0.31% FTSE 100 7346.54 -4.65 -0.06% Nikkei Stock 27980.14 49.57 0.18% Hang Seng 18373.90 328.24 1.82% Kospi 2458.94 16.04 0.66% SGX Nifty* 18420.00 45.0 0.24% *Nov contract USD/JPY 139.87-88 -0.23% Range 140.49 139.85 EUR/USD 1.0367-70 +0.03% Range 1.0380 1.0358 CBOT Wheat Dec $8.066 per bushel Spot Gold $1,763.20/oz 0.2% Nymex Crude (NY) $81.86 -$3.73 US STOCKS
Stocks slipped, as investor enthusiasm about a potential slowdown in interest-rate increases by the Federal Reserve faded.
The S&P 500 fell 0.3%, paring its steeper losses from earlier in the day. The technology-focused Nasdaq Composite was also down 0.3%, and the Dow Jones Industrial Average edged down less than 0.1%. All three indexes remain up for November.
St. Louis Fed President James Bullard said interest rates have to rise higher to restrict the economy to an extent that brings inflation back to the Fed’s target.
“A lot of the market’s rally over the past week has been on expectations that the Fed will imminently pivot,” said Edward Park, chief investment officer at Brooks Macdonald. “The Fed has made clear it won’t do that.”
ASIAN STOCKS
Japanese stocks were higher in early trade, even after data showed that overall consumer inflation rose 3.7% from a year earlier in October. The CPI reading exceeded the Bank of Japan’s 2% target for the seventh consecutive month. The Nikkei Stock Average was 0.2% higher at 27999.28.
South Korea’s Kospi rose 0.8% to 2461.50 in what appears to be a technical rebound after the benchmark index posted its biggest one-day drop since mid-October on Thursday. However, gains may be limited after Fed officials reiterated overnight their hawkish stance on rate increases, analysts say.
Hong Kong stocks were higher in morning trading, with the benchmark Hang Seng Index gaining 1.3% to 18275.02. Chinese tech giants led the rise after the sector soared on Wall Street overnight, as investors welcomed Alibaba’s latest earnings beat. After the HSI’s recent rally, Central China International analysts warn of potential downside risk for the market, noting continued external-risk factors, including a slowing global economy and elevated interest rates. Defensive and high dividend-yield stocks may still be a good bet despite these sectors’ less impressive jump in recent sessions, they say.
Chinese shares are higher, tracking broad gains among other Asian equities. The benchmark Shanghai Composite Index rose 0.1% to 3117.79, the Shenzhen Composite Index added 0.2% to 2043.62 and the ChiNext Price Index rose 0.7% to 2401.48. Shares of Chinese liquor stocks were higher, with Kweichow Moutai gaining 0.3% and Wuliangye Yibin up 0.7%. China’s daily Covid-19 cases have risen to the highest level since March, which is raising concerns that Chinese authorities may implement stricter restrictions to curb the virus, CBA analyst Vivek Dhar said in a note: “The next few weeks will help reveal the bias of policymakers with China’s Covid-zero policy.”
FOREX
Most Asian currencies strengthened against USD in the Asian morning session on risk appetite driven by gains in regional equity markets. However, the currencies’ strength may be curbed by hawkish comments from Fed officials, analysts said. St. Louis Fed President Bullard said overnight that the Fed funds rate is “not yet in a zone that may be considered sufficiently restrictive” and should rise to at least 5%-5.25% to bring inflation under control, Carol Kong, economist and currency strategist at CBA, said in a research report. USD/KRW fell 0.4% to 1,338.71 and USD/THB edged 0.1% lower to 35.80 and AUD/USD rose 0.2% to 0.6698.
METALS
Gold prices inched up in early Asian trade, after declining overnight on a stronger USD and Treasury yields following hawkish comments from St. Louis Fed President James Bullard. “A deeper retracement cannot be ruled out for gold as it remains at the mercy of the U.S. dollar and broader sentiment,” DailyFX analyst Zain Vawda said in a note, adding that the precious metal remains vulnerable below the key $1,800 level. Spot gold was 0.2% higher at $1,763.20/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade, recovering from overnight losses. However, worries over China’s zero-Covid policy will likely continue to dim the outlook for energy demand. “China’s Covid concerns are on everyone’s mind, and with local surges giving rise to protracted lockdowns, oil prices are moving tangentially lower to that increasing probability,” SPI Asset Management’s managing partner Stephen Innes said in a note. There are also signs that oil markets are softening, ANZ analysts said in a note. “Demand for winter delivery of barrels has been slipping despite the looming deadline for European sanctions on Russia’s crude,” they said. Front-month WTI futures were 0.6% higher at $82/16/bbl; front-month Brent rose 0.4% to $90.11/bbl.
TOP HEADLINES Fed's Bullard Says Benchmark Interest Rate in 5%-7% Range May Be Needed to Bring Inflation Down Japan's Overall CPI Rose 3.7% in October Wall Street Sours on Coinbase, Signaling Broad Crypto Doubts U.S. Companies Still Boost Capital Spending Despite Higher Rates Housing Starts Fall Again as High Mortgage Rates Scare off U.S. Home Buyers North Korea Fires Suspected Intercontinental Ballistic Missile Kamala Harris Leads U.S. Push to Bolster Economic Ties in Asia Russia Launches Fresh Missile Strikes on Ukraine U.S. Vows to Tackle Visa Delays as Frustrations Mount Pelosi Will Step Down as Democratic Party Leader in House Biden Administration to Make It Easier to Dismiss Student Loans in Bankruptcy Resurrection of U.S.-China Ties Boosts COP27 Climate Talks U.K. Government Seeks Further Easing of Data Protection Rules Amazon CEO Jassy Says Layoffs to Extend Into 2023 Visa CEO Alfred Kelly to Retire Applied Materials Easily Surpasses Earnings and Forecast Expectations GM Outlines Game Plan to Protect Profit in EV Transition Gap Swings to Profit With Turnaround Under Way BHP, World's Top Miner, Nears Biggest Acquisition in a Decade
(END) Dow Jones Newswires
November 17, 2022 22:15 ET (03:15 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Read More: Indian Morning Briefing: Asian Markets Mixed; Japan’s Overall CPI Rose 3.7% in October