Global Stocks Slid After a Rise in US Bond Yields

Highlights:

• • USA
    The Dow Jones advanced by 0.21% or 71.37 points, to 34,869.37.
    Meanwhile, the selective S&P 500 cut 0.28% or 12.37 points, to 4,443.11. The Nasdaq index fell by 0.52% or 77.73 points, standing at 14,969.97.
  • ASIA
    The Nikkei slid by 0.19% or 56.10 points and ended at 30,183.96.
    The Kospi index closed with a loss of 1.14% or 35.72 at 3097.92.
    Hang Seng closed with a rise of 1.2% or 291.61 points, to 24,500.39.
  • EUROPE
    The Stoxx 600 index was trading with a loss of 1.3%. The EuroStoxx 50 index slid by 1.26%, and the FTSEurofirst 300 yielded 0.97%.

Wall Street settled mixed on Monday

Wall Street closed mixed this Monday amid an increase in volatility in the last week of September. The market was scattered due to the absence of new catalysts.

The Dow Jones advanced by 0.21% or 71.37 points, reaching 34,869.37. 

Meanwhile, the selective S&P 500 cut 0.28% or 12.37 points, to 4,443.11. The Nasdaq index fell by 0.52% or 77.73 points, standing at 14,969.97.

Wall Street indicators made gains despite several negative factors, such as the Chinese Evergrande crisis and the debt ceiling in the US.

According to analysts, the market is betting on the recovery from the Covid-19 pandemic, although problems in the supply chain continue to be a concern. 

In addition, investors are adapting that the withdrawal of monetary stimulus could begin before the end of the year if the economy continues to progress.

 

The continued rise in oil prices is benefiting oil stocks

Brent gained 2.05% to $79.68 per barrel and WTI advanced by 2.04% to $75.49. Goldman Sachs has raised its Brent price forecast by $10 to $90 for the end of the year. Exxon Mobil and Chevron gained 2.9% and 2.8%, respectively. Schlumberger and Halliburton expanded by 4% each. 

By sector, the energy sector increased the most, surging by 3.43%. 

The most affected was real estate, sliding by 1.71%. It was followed by the health sector, which lost 1.43%. Technology moderated its loss to 1.01%. 

Among the 30 companies listed on the Dow Jones, Dow Inc was the biggest gainer, climbing by 5.07%). JPMorgan Chase followed it with a rise of 2.42%. Meanwhile, Chevron advanced by 2.36%, and Goldman Sachs added 2.29%.

Big technology companies such as Salesforce slipped by 2.08%. Meanwhile, Microsoft lost 1.73%, and Procter & Gamble dropped by 1.32%.

Apple and Amazon decreased by more than 2% each. Alphabet, the parent company of Google, lost nearly 1%.

The Nikkei slid but still fixed at 30,000

The Tokyo market started selling due to the mild conditions such as high-tech stocks.

The Nikkei slid by 0.19% or 56.10 points and ended at 30,183.96. Topix index finished with an advance of 0.29% or 5.97 points, to 2,081.77.

Investors in the Tokyo stock market avoided risky moves. The Nikkei has been accumulating gains since the current prime minister, Yoshihide Suga, announced his intention not to run for re-election earlier this month. It triggered optimism on the Tokyo stock market in the face of expectations that his successor in office would expand the economic stimulus measures.

Industries such as mining, textiles, banks, non-ferrous metals, and oil, and coal increased. On the other hand, shipping fell by more than 8%. Also, sectors such as precision equipment, air transportation, and other products declined.

Among the securities with the highest capitalization, the technology giant Softbank gained 2.38%. Meanwhile, Toyota Motor, the Japanese automotive leader, advanced by 0.53%.

The maritime transport sector accumulated the most notable losses of the day. Among the companies in the industry, Nippon Yusen plunged by 8.17%. Also, Kawasaki Kisen shed 14.45% after gains in previous days.

The electronic components manufacturer Lasertec lost 3.14%. Meanwhile, Fast Retailing, the multinational textile company owner of Uniqlo’s clothing store, fell by 0.26%.

The trading volume of the session amounted to 3.81 trillion yen.

 

The Kospi declined due to institutional selling

The Kospi index closed with a loss of 1.14% or 35.72 at 3097.92. It is the first time in 10 trading days since the Kospi index fell by 1%. 

In the stock market, institutions alone sold 555.3 billion won worth of net sales. Individuals and foreigners net bought 560.3 billion won and 9.2 billion won, respectively.

Institutional investors got concerned about the number of new COVID-19 infections in South Korea. It remained above 2,000 for the third consecutive day.

Most of the companies with the highest market capitalization posted declines. Samsung SDI shed 2.72%, Naver lost 2.61%, Kia cut 2.44%, and Kakao declined by 2.08%. Meanwhile, Samsung Electronics slipped by 1.80%, and Celltrion dropped by 1.50%. Hyundai Motor shed 1.23%, and SK Hynix lost 0.96%. 

Only Kakao Bank and LG Chem finished trading with a gain of 1.29% and 0.78%, respectively.

As for sectors, pharmaceuticals, textiles, and apparel, and non-metallic minerals showed the most significant decline. In contrast, insurance companies added 2.24%, the electricity and gas industry expanded by 2.07%, and banks rose by 1.39%.

The Kosdaq index dropped by 2.16% or 22.31 points to 1012.51. 

In the Kosdaq market, foreigners and institutions sold 207.5 billion won and 236.8 billion won, respectively. Individuals bought 4456 billion won.

 

Hang Seng Index rose more than 1%

The Hong Kong stock market opened with increases today but continued to fluctuate in the afternoon. Hang Seng closed with a rise of 1.2% or 291.61 points, to 24,500.39. Meanwhile, the Hang Seng China Enterprises added 1.59%. 

Three of the four sub-indices closed in the positive territory. Among the, a 2.8% increase in the Real Estate sector stood out. It was followed by Commerce and Industry sector, adding 1.67%. Finance gained 0.32%, while the services sector lost 0.68%.

Evergrande shares, listed on the Hong Kong Stock exchange, but not included in the Hang Seng, grew by 4.71%. 

Meanwhile, real estate developers such as CG Services, Longfor Group, or China Overseas on the Hang Seng gained 7.15%, 7.04%, and 5.9%, respectively.

The energy sector rose sharply, with Yanzhou Coal Industry rising by over 15.52%. Chinese oil companies also had a good day. CNOOC Oilfield Services climbed by 11.48%, and China Nuclear Energy Technology added 10%. Also, Petrochina gained 2.07%, and Sinopec added 1.8%.

The financial sector registered moderate benefits, with HSBC conglomerate and ICBC bank rising more than 1%. 

Chinese tech companies also settled with advances. Alibaba surged by 6.34%. Meanwhile, Tencent and Meituan expanded by 1.11% and 1.36%, respectively.

The worst performers of the day were CSPC Pharma and Ali Health, losing 2.69% and 2.18%, respectively. 

 

Europe in the red

European stocks slumped to their lowest in a week. A surge in US bond yields hit high-growth technology shares, while signs of a slowdown in China’s economy weigh on investor sentiment. Conversely, the oil and gas sector is advancing by 1.04% with the continued rise in crude prices.

The Stoxx 600 index was trading with a loss of 1.3%. The EuroStoxx 50 index slid by 1.26%, and the FTSEurofirst 300 yielded 0.97%.

While the benchmark Stoxx 600 is on course to extend its quarterly winning streak, a volatile September took some shine off its third-quarter gain.