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World Shares Mostly Higher after the US Averts Shutdown

Highlights:

    • USA
      The Dow Jones increased by 0.26% or 90.73 points, to 34,390.72. Meanwhile, the S&P added 0.16% or 6.83 points, to 4,359.46. The Nasdaq index slipped by 0.24% or 34.24 points, standing at 14,512.44.
    • ASIA
      The Nikkei average closed with a loss of 0.31% or 91.63 points to 29452.66.
      The stocks finished trading with a rise of 0.28% or 8.55 points to 3068.82.
      The Hang Seng slid by 0.36% or 87.86 points to 24,575.64. 
    • EUROPE
      The EuroStoxx 50 index was trading with an increase of 0.79%. Meanwhile, the FTSEurofirst 300 climbed by 0.86%, and the Stoxx 600 added 0.9%.

Wall Street fails to rebound completely 

Wall Street closed in the mixed territory on Wednesday. Even though the New York stock market achieved a partial rebound, technology stocks failed to settle in the green after their worst drop since March. 

The Dow Jones increased by 0.26% or 90.73 points, to 34,390.72. Meanwhile, the S&P added 0.16% or 6.83 points, to 4,359.46. The Nasdaq index slipped by 0.24% or 34.24 points, standing at 14,512.44.

On Wednesday, US 10-year government bond rates remained stable at around 1.53%.

The heavyweights of information technology and communication services have suffered from the bond yields surge. Thus, Facebook settled with a loss of 0.31% to $339.61. Alphabet dipped by 1.22% to $2,690.42. Meanwhile, Amazon dropped by 0.45% to $3,301.12.

Investors are reacting to the prospect of the Fed tapering in the coming months as inflation persists. This is an uncomfortable period since stocks have to learn to stand on their own again. 

By sector, public service companies advanced by 1.3%, and essential goods added 0.87%. Basic materials posted the greatest losses, sliding by 0.39%. Meanwhile, the technology sector remained almost unchanged, dropping by 0.1%. 

Boeing was the biggest winner among the 30 companies listed on the Dow Jones, surging by 3.14%. It followed good analyst reviews. However, the company also progressed in the process of returning the 737 Max to the Chinese sky. MSD also hiked by 2.36%, Walgreens increased by 1.29%, and IBM added 1.29%. At the same time, Caterpillar was the most affected, yielding 1.40%. Dow Inc followed it with a decrease of 1.16%. On the Dow Jones, a third of the firms settled with losses.

Inflation fears grow

At a virtual conference hosted by the ECB, Fed chairman Jerome Powell confirmed that supply chain disturbances are causing inflation. He also admitted that the rise in prices is well above the Fed target of 2%, and it will remain so in the coming months. 

The last days of September also coincide with the end of a quarter, which often leads investors to close positions, leading to more volatility in the market.

 

Nikkei fell for the fourth day in a row

The Nikkei average closed with a loss of 0.31% or 91.63 points to 29452.66. The trading volume of the first section of the Tokyo Stock Exchange was 1,551.25 million shares, and the trading value was 4,391.4 billion yen. 

The Topix index fell by 0.40% or 8.13 points to 2,030.16.

Yesterday, we saw the triumph of Fumio Kishida in the race to become Japan’s next Prime Minister. He has promised multimillion-dollar investments to guarantee the post-pandemic economic recovery.

However, analysts consider that investors have already evaluated the positive effect expected from the new Japanese leadership. Now they are waiting for concrete measures.

By industry, the shipping industry, transportation equipment, and electricity/gas industry had the highest rate of decline. On the other hand, the land transportation industry, pharmaceuticals, and retail industry had the highest rate of increase. 

Shipping stocks such as NYK Line, Kawasaki Ship, and Mitsui Line closed at significantly lower prices. Softbank, Lasertec, and Tokyo Electron also showed a noticeable decline. 

Among the biggest winners of the day is the manufacturer of electronic components and devices Murata, which surged by 3.4%. Keyence, which is newly incorporated into the market, also climbed by 4.05%. Meanwhile, the video game company Nintendo rose by 2.02%.

On the other hand, Fast Retailing advanced by more than 4%. Shionogi increased by more than 5%. Reports show they are aiming to apply for approval of the new coronavirus vaccine by the end of the year.

Kospi rebounded slightly 

The Kospi, which plunged due to the rise in US Treasury yields, rebounded slightly for the first time in three days. It finished trading with a rise of 0.28% or 8.55 points to 3068.82. 

The Kosdaq technology index advanced by 0.18% or 1.81 points, to 1,003.27.

The Kospi started the day hesitating amid US inflation and future moves by the US Federal Reserve to tighten its monetary policy.

However, after two consecutive days of negative closing, the Kospi managed to rebound thanks to the purchases of undervalued assets. These buys were mainly in the technology sector, at the hands of foreign investors and retailers, making a net of about 204 billion won.

Tech giant Samsung Electronics finished flat. Meanwhile, the world’s second-largest memory chip maker, SK Hynix, added 3%.

Naver gained 0.26%, and Kakao increased by 1.29%.

In the pharmaceutical sector, Samsung Biologics closed flat, and its competitor Celltrion fell by 0.57%.

On the other hand, Hyundai Motor lost 0.74%.

 

Tech stocks dragged the Hong Kong index down

The Hang Seng index opened lower on Thursday and narrowed its decline. It slid by 0.36% or 87.86 points to 24,575.64. 

Meanwhile, the Hang Seng Technology Index fell for three consecutive months. Mining and metals rebounded again. Pharmaceutical, steel, shipping, sporting goods, dairy, and mainland real estate stocks also advanced.

The Hang Seng Technology Index slumped by 1.26% to 6101.52 points, to 7.66%. 

Wind power and nuclear power stocks were among the top gainers.

Some mainland real estate stocks rebounded. Sunac China raised by 12.77%, and R&F Properties added 17.25%.

As for the technology stocks, Alibaba slumped by 4.11%, JD Group shed 3.61%, Bilibili fell by 2.69%, and Xiaomi dropped by 2.95%. 

Meanwhile, Meituan lost 1.36%, Tencent Holdings shed 0.95%.

 

European equities keep rebounding

The main European stock markets increased sharply in the morning trading on Thursday, continuing the rebound started the day before.

The EuroStoxx 50 index was trading with an increase of 0.79%, the FTSEurofirst 300 climbed by 0.86%, and the Stoxx 600 added 0.9%.

European stocks are still trying to recover from losses suffered on Tuesday. A surge in bond yields caused a sharp movement of sales in the equity markets.

The technology sector, which was the first impacted by the increase in rate, still leads the rebound with a gain of 1.78%.

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