GLOBAL MARKETS DJIA 33553.83 -39.09 -0.12% Nasdaq 11183.66 -174.75 -1.54% S&P 500 3958.79 -32.94 -0.83% FTSE 100 7351.19 -18.25 -0.25% Nikkei Stock 27975.18 -53.12 -0.19% Hang Seng 17817.36 -439.12 -2.41% Kospi 2457.39 -20.06 -0.81% SGX Nifty* 18407.50 -72.5 -0.39% *Nov contract USD/JPY 139.53-54 -0.01% Range 139.66 139.24 EUR/USD 1.0372-75 -0.21% Range 1.0401 1.0363 CBOT Wheat Dec $8.174 per bushel Spot Gold $1,768.71/oz -0.3% Nymex Crude (NY) $85.49 -$1.43 US STOCKS
US equities fell as a better-than-expected retail sales reading kept markets focused on the Federal Reserve.
The S&P 500 fell 0.8%, while the technology-focused Nasdaq Composite Index fell 1.5%. The Dow Jones Industrial Average lost 0.1%.
Investors are looking to ascertain the resilience of both consumers and businesses to pricing pressures and high borrowing costs. Data showed that US retail sales rose strongly in October. Quarterly updates from US retailers offered a more mixed picture.
“Part of the relative strength of retail sales versus some of the reported earnings is that it’s not an inflation-adjusted series,” said Ian Lyngen, head of US rates strategy at BMO Capital Markets. “Yes, prices are higher and that’s creating higher nominal sales. But in real terms, it’s not as strong as the headlines might suggest.”
Japanese stocks were lower in early trading, following declines on Wall Street overnight following stronger-than-expected retail sales data. Oil company Idemitsu Kosan fell 0.3% after it outlined its plan to invest 190 billion yen in clean energy projects. Average Nikkei stock fell 0.2% to 27976.84.
South Korea’s benchmark Kospi fell 0.4% to 2466.83 in early trading, following Wall Street’s declines overnight. Electronics and chemicals stocks led the Kospi’s retreat after US semiconductor stocks fell sharply. A better-than-expected US retail sales reading fueled inflation worries again and worries about aggressive Fed tightening, sending USD/KRW up 0.5% to 1332.20.
Chinese shares fell in early trading amid concerns over the rising number of Covid-19 cases in the country. The benchmark Shanghai Composite Index fell 0.5% to 3105.41, the Shenzhen Composite Index fell 0.5% to 2028.81 and the ChiNext Price Index fell 0.8% to 2384.20 . China’s property market could remain the focus after data showed home prices fell for the 14th consecutive month in October on continued weakness in real estate demand, analysts from China said in a note. Commerzbank. “The weak economy, sluggish employment and poor income prospects due to the domestic pandemic situation all have a part to play,” they said.
Hong Kong’s Hang Seng Index fell 1.7% to 17950.33, following a drop in US stocks overnight. Wall Street stocks fell as investors reviewed stronger-than-expected retail sales data and comments from the Federal Reserve that UOB analysts are likely to back expectations that a break in the squeeze is out of the question.
Most Asian currencies weakened against the US dollar in the Asian morning session on fears of a US recession. There are concerns about further Fed rate hikes leading to a recession, Philip Wee, senior forex strategist at DBS Group Research, said in a report, noting comments from Fed officials overnight who dismissed the dovish bets. With Fed rate hikes perceived as a recession risk, the incentive to keep selling US dollars has diminished, Wee added. USD/KRW was up 0.3% to 1341.34 and USD/SGD gained 0.2% to 1.3733, while AUD/USD fell 0.3% to 0.6715.
Gold prices fell slightly in early Asian trade after stabilizing lower overnight as investors continued to look for clues about the Federal Reserve’s interest rate path after stronger-than-expected retail sales data. The precious metal appears to be stuck in limbo as weakening USD trade appears to be ready for a break, Oanda senior market analyst Edward Moya said in a note. “Right now its main catalyst is the Fed’s rate hike path, which determines the direction of the dollar,” he added. Spot gold fell 0.3% to $1,768.71/ounce.
Oil prices were lower in early Asian trade as the potential risk to crude supplies posed by tensions over a missile attack in Poland eased somewhat. Now, demand concerns are likely to return to the fore as Covid-19 cases in China continue to rise and flu season approaches, Stephen Innes, managing partner at SPI Asset Management, said in a statement. “Traders are being left with little scope to recalibrate positions reflecting the possibility of further lockdowns in densely populated centers hurting oil demand exponentially more than other areas of the economy,” he added. First month WTI futures fell 0.5% to $85.13/bbl; First month Brent fell by 0.4% to 92.47 $/bbl.
TOP HEADLINES Fed Official Warns Against Prematurely Concluding Inflation Has Peaked Republicans Win Control of House Japan Exports Log 20th Straight Month of Growth in October Missile Blast in Poland Risked Russia-NATO Clash Before Both Sides Dialed Back McConnell Wins Re-Election as Senate Minority Leader Karen Bass Is Elected Mayor of Los Angeles Many Republican Lawmakers Are Wary of New Trump Presidential Bid Iran Hands Out More Death Sentences to Protesters Chip Maker Nvidia Issues Tepid Earnings Forecast as Videogaming Business Slows Cisco's Stock Rises on Strong Quarterly Sales and Guidance, But a Restructuring Is Coming FTX Management, Bahamas Gear Up for Fight Over Control of Bankruptcy Temasek to Write Down $275 Million Investment in Crypto Firm FTX Top CBS Executives Exit Amid Broader Paramount Restructuring Amazon Confirms Corporate Cuts That Could Hit 10,000 Employees Some Apple iPhones Won't Be Delivered Before Christmas Musk Tells Twitter Staff to Work 'Long Hours at High Intensity' or Leave
(END) Dow Jones Newswires
November 16, 2022 at 10:15 PM ET (03:15 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.