GLOBAL MARKETS DJIA 32945.24 1.05 0.00% Nasdaq 12581.22 -262.59 -2.04% S&P 500 4173.11 -31.20 -0.74% FTSE 100 7193.47 37.83 0.53% Nikkei Stock 25341.59 33.74 0.13% Hang Seng 19027.22 -504.44 -2.58% Kospi 2619.14 -26.51 -1.00% SGX Nifty* 16851.50 -31.5 -0.19% *March contract USD/JPY 118.32-33 +0.12% Range 118.45 118.11 EUR/USD 1.0974-77 +0.31% Range 1.0978 1.0932 CBOT Wheat March $10.900 per bushel Spot Gold $1,947.80/oz -0.3% Nymex Crude (NY) $101.86 -$7.47 US STOCKS
Stocks slipped as investors tracked the latest developments in Ukraine and awaited a likely interest-rate increase by the Federal Reserve later this week.
The Dow Jones Industrial Average was little changed and the S&P 500, which has fallen for four of the five past weeks, fell 0.7%. Investors have been spooked by the war in Ukraine and a rally in commodity prices sparked by the conflict, on top of the prospect of rising rates. A Covid-19 outbreak in China disrupted manufacturing by a key supplier in the city of Shenzhen, helping drag down the technology-focused Nasdaq Composite Index Index by 2%.
"The China shutdown and potential supply chain issues, people are scared of that," said Joe Saluzzi, co-head of equity trading at Themis Trading. "Just as you thought you were getting relief in the supply chain, we might get another hit."
ASIAN STOCKS
The Nikkei Stock Average was flat at 25308.42 as gains in financial and chemical stocks helped offset losses in energy and tech stocks. Sharp gains in U.S. Treasury yields overnight were helping financial stocks, while raising concerns about funding costs for tech stocks. Meanwhile, chemical stocks were higher following drops in crude oil prices overnight. Headlines on Ukraine were in focus as diplomatic efforts to end Russia's war in Ukraine showed no signs of progress on Monday. The broader market index Topix was 0.2% higher at 1816.52.
South Korea's Kospi fell 0.3% to 2637.78, weighed by tech, energy and shipbuilding stocks. The Chinese lockdown of tech-hub Shenzhen and other cities on renewed Covid-19 fears is adding to worries among investors, a Kiwoom Securities analyst said, as China faces its worst coronavirus outbreak since the start of the pandemic and seeks to limit business activities in affected areas. The Fed's expected rate increases later this week and the war in Ukraine continued to weigh on sentiment. Foreign and institutional investors were net sellers.
Hong Kong's Hang Seng Index fell 3.7% to 18809.47, dragged down by several negative factors. These include the resurgence of Covid-19 in Hong Kong and China, the sharp rise in U.S. Treasury yields and worries over the potential delisting of Chinese stocks in the U.S. ADR market, KGI Research said. The Hang Seng TECH Index was down 5.8% at 3560.35.
Chinese stocks were lower amid concerns over the country's fresh wave of Covid-19 cases. The Shanghai Composite Index dropped 1.7% to 3168.52, the Shenzhen Composite Index fell 1.4% to 2080.59 and the ChiNext Price Index was down 1.4% at 2533.77. The government's move to put Shenzhen, a key tech hub, under a seven-day lockdown will likely weigh on market sentiment this week, IG said. There may be "significant economic impact as it will hit output in industries such as tech and machinery, which feed into global supply chains," IG noted. Bank stocks were lower, with Agricultural Bank of China down 0.3% and Bank of Shanghai off 1.2%.
FOREX
Asian currencies consolidated against USD in the Asian morning session, but could weaken amid faltering risk appetite ahead of the FOMC's two-day meeting that begins later today. Market sentiment has been weighed by an imminent Fed rate increase at the FOMC meeting and the prospects for stagflation, an undesirable outcome of slow economic growth and high inflation, DailyFX.com said. USD/JPY rose 0.1% to 118.33, USD/TWD gained 0.2% to 28.61, while AUD/USD was little changed at 0.7188 and USD/SGD was steady at 1.3670.
METALS
Gold edged lower in the Asian morning session ahead of the FOMC's two-day meeting starting later today. Gold is a tricky trade for now and could be subject to further profit-taking as market participants try to get a better handle on how high the Fed will raise rates this year, Oanda said. Selling of the precious metal might target the $1,930/oz level, but that should be a level where buyers emerge, Oanda added. Spot gold was 0.3% lower at $1,947.80/oz.
OIL SUMMARY
Oil fell amid reports the U.S. is seeking to ease sanctions on Venezuelan oil. Though U.S. officials have discussed easing oil sanctions on the Latin American country as part of efforts to tame surging oil prices amid Russia's war in Ukraine, the White House said Monday that the Biden administration isn't in active discussions with Caracas about importing oil into the U.S. Oil prices were also down on demand concerns in China after authorities there locked down Shenzhen due to resurgence of Covid-19 cases, CBA said. Front-month WTI crude oil futures were 2.7% lower at $100.25/bbl; front-month Brent crude was s 2.5% lower at $104.24/bbl.
TOP HEADLINES China's Economic Activity in January-February Grew Faster Than Expected S&P Slips Amid Russia-Ukraine Talks, New Chinese Covid-19 Fears Treasury Yields Rebound to New Multiyear Highs Talks to End Ukraine War Pause as Russia's Offensive Intensifies London Metal Exchange to Resume Nickel Trading Wednesday Lockdowns Spread Across China to Contain Outbreak Manchin Signals Opposition to Raskin for Fed Post Saudi Arabia Invites China's Xi to Visit Kingdom Amid Strained U.S. Relations Boy Scouts Bankruptcy Trial Opens With Questions About Grants of Legal Immunity String of Attacks on Homeless in New York, D.C. May Be Linked to Same Gunman Ukraine's Zelensky to Press Congress for More Military Gear Russians Kill Civilians, Loot for Supplies in Occupied Ukraine, Residents Say China Tries to Shift Attention as U.S. Presses It on Ukraine Foxconn in Talks to Build $9 Billion Factory in Saudi Arabia Wells Fargo CEO Charles Scharf Gets 20% Pay Raise Consortium Including Elliott in Advanced Talks to Buy Nielsen Holdings HBO Max, Streaming Service Discovery+ to Combine Postmerger Elon Musk Says Tesla, SpaceX Facing 'Significant' Inflationary Pressure
(END) Dow Jones Newswires
03-14-22 2315ET
