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Global Stocks Mixed Before US Inflation Data

Highlights:

    • USA
      The Dow Jones advanced by 0.76% or 261.91 points, to 34,869.63. The S&P 500 index increased by 0.23% or 10.15 points, to 4,468.73. The Nasdaq Composite Index fell by 0.07% or 9.91 points, to 15,105.58. 
    • ASIA
      The Nikkei closed with a rise of 0.73% or 222.73 points to 30,670.10.
      The Kospi finished trading with an advance of 0.67% or 20.97 points at 3148.83.
      The Hang Seng shed 1.21% or 311.58 points, to 25,502.23.
    • EUROPE
      The EuroStoxx 50 index was trading with a decrease of 0.5%. At the same time, the FTSEurofirst 300 lost 0.35%, and the Stoxx 600 cut 0.36%.

Wall Street closed mixed

Wall Street ended mixed on Monday, with the Nasdaq composite index ending in negative territory.

The Dow Jones advanced by 0.76% or 261.91 points, to 34,869.63. The S&P 500 index increased by 0.23% or 10.15 points, to 4,468.73. The Nasdaq Composite Index fell by 0.07% or 9.91 points, to 15,105.58. 

The financial sector registered a sharp increase, adding 1.14%. Meanwhile, sanitation companies were the most affected, yielding 0.61%.

Investors’ expectations that the Fed and the US Government will keep promoting stimulus measures supported the New York Stock Market. 

Last week was the worst for the S&P 500 since February. Uncertainty about economic recovery and the timing for the stimulus tapering weighed on the market. 

This Monday, daily cases of the coronavirus soothed in the US. Oanda analyst Craig Erlam stated that markets would be focused on the economic data heading into the Fed’s September meeting. 

Among the 30 prominent companies listed on the Dow Jones, the drop in UnitedHealth stood out. The company depreciated by 2.65%. Intel and Chevron also posted significant losses, sliding by 2.15% and 2%.

Nike closed in the red, sinking by 2.52%. Investment firm BTIG lowered the outlook for the company. It cited supply chain challenges caused by the pandemic. According to BTIG, production issues could affect Nike’s holiday sales.

Meanwhile, Salesforce also plunged by 1.21%.

Retail sales data will be released later

Market participants are focused on the possible approval of a $3.5 trillion budget package proposed by the US government under President Joe Biden, including a proposal to increase tax rates.

Goldman Sachs analysts expect an increase in corporate tax to 25%. An increase in the foreign income tax rate will cut earnings for the S&P 500 index issuers by 5% in 2022. 

Today, the US Department of Labour will release consumer price data, indicating the inflation movement, which will affect the market sentiment.

Nikkei reached a 31 year high

stock marketThe Nikkei index reached the highest closing price in about 31 years. The Tokyo stock exchange momentarily hit 37957.8 yen in the morning transaction, setting a new high for the trading hours and the highest price in 31 years and one month since August 1990.

After that, there were sell orders to secure profits. 

The Nikkei closed with a rise of 0.73% or 222.73 points to 30,670.10, which is also a 31 year high.

According to market officials, the Nikkei has risen by more than 3,000 yen in the last two weeks. So, investors are wary of overheating.

The Nikkei has accumulated an 8% surge since the beginning of September. Analysts attribute this evolution to the departure of the current prime minister with low ratings. The change in leadership raised expectations for new fiscal stimuli. 

Another positive factor for the Japanese stock market has been decreasing coronavirus infections in the country. It generated prospects of lifting the covid-19 induced restrictions.

Since the beginning of September, the number of daily infected cases has kept a clear downward trend. Meanwhile, the portion of the fully vaccinated population now surpasses 51%.

Among the stocks with the highest capitalization on the Kospi, Toyota Motor climbed by 1.54%. At the same time, the technology giant Softbank lost 0.49%.

The maritime transport company Nippon Yusen posted one of the most notable increases, adding 1.32%. Lasertec, the manufacturer of components for semiconductors, expanded by 0.82%. Also, Keyence gained 0.63%, and Sony added 0.98%.

Kospi closes higher on institutional buying

The Kospi finished trading with an advance of 0.67% or 20.97 points at 3148.83.

Institutions and foreigners bought 762.2 billion won and 298.3 billion won, respectively. On the other hand, separate individuals sold 1.65 trillion won. According to analysts, the increase in the primary vaccination rate for the novel coronavirus infection reflects expectations for the normalization of economic activities.

Navar and Kakao had been on a sharp decline for a while now. 

The Kospi registered a decline due to concerns of regulations. However, the index recovered much of its decline in the afternoon. 

Among the top stocks by market cap, Kakao Bank, Hyundai Motor, Samsung SDI, Hyundai Mobis, SK Hynix, Samsung Electronics increased. Meanwhile, POSCO and LG Chem fell. 

Among the major industries, banking, medical precision, transportation warehousing, finance, transportation equipment, and machinery sectors rose. On the other hand, steel and metals, non-metallic minerals, textiles, and clothing sectors shed more than 1%.

The Kosdaq closed with an increase of 1.11% or 11.40 points, at 1037.74. 

Hang Seng closed in the red, dragged by real estate

 

The Hang Seng slipped today due to the loss of real estate and insurance companies. It shed 1.21% or 311.58 points, to 25,502.23. Meanwhile, the Hang Seng China Enterprises dropped by 1.7%.

Among the sub-indices, real estate led the losses, dipping by 2.22%. The finance sector followed it with a decline of 1.49%. Meanwhile, the trade and industry yielded 0.92%, and the services lost 0.53%.

Among the real estate companies, Country Garden plunged by 5.01%, and CG Services slipped by 4.59%. Besides, China Resources Land ended with a loss of 3.13%. The rest of the sector ended flat, except for CK Asset, which added a slight 0.2%.

Insurers did not have a good day either. Ping An slid by 2.54%, China Life shrunk by 1.19%, and AIA declined by 0.37%.

As for the gainers of the session, oil company Petrochina surged by 4.19%. Meanwhile, the automotive company BYD gained 2.89%, the technology company Wuxi Biologics advanced by 2.43%. Also, the pharmaceutical company CSCP Pharma ended with an increase of 0.21%.

Ali Health was the biggest loser of the day, diving by 6.34%.

The business volume of the trading session amounted to 140,940 million Hong Kong dollars.

European stock markets retreated 

The main European stock markets moved in the red at the beginning of the trading session on Tuesday. The markets are awaiting the US monthly consumer price index. This could influence the Fed decision at the central bank meeting next week. Meanwhile, the worry about resurgence of coronavirus infections in China persists. 

The EuroStoxx 50 index was trading with a decrease of 0.5%. The FTSEurofirst 300 lost 0.35%, and the Stoxx 600 cut 0.36%.

 

 

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