BANGKOK (AP) – Shares were trading higher in Europe after a retreat yesterday in Asia following a third straight day of losses on Wall Street as its long, record-breaking rally lost more steam.
Oil prices gained more than USD1.
Germany’s DAX climbed 0.8 per cent to 19,525.36 and the CAC 40 in Paris also gained 0.8 per cent, to 7,557.30. Britain’s FTSE 100 was likewise up 0.8 per cent, at 8,322.03.
The future for the S&P 500 was up 0.5 per cent while that for the Dow Jones Industrial Average edged 0.1 per cent lower.
In Asian trading, Japan’s benchmark Nikkei 225 shed larger early gains, ending 0.1 per cent higher at 38,143.29 as purchasing manager indexes showed worsening conditions in Japan for both manufacturing and services.
The overall composite PMI compiled by au Jibun Bank fell to a two-year low.
“Japan’s private sector fell into contraction territory at the start of the fourth quarter of the year,” economist at S&P Global Market Intelligence Usamah Bhatti said in a commentary. “Confidence about business activity growth in the next 12 months softened in October and was the least pronounced since August 2020.”
In Seoul, the Kospi gave up 0.7 per cent to 2,581.03 and Australia’s S&P/ASX 200 edged 0.1 per cent lower to 8,206.30.
On Wednesday, the S&P 500 sank 0.9 per cent. Its recent pullback follows six straight winning weeks, its longest such streak this year.
Stocks are sagging under rising pressure from Treasury yields. Higher yields can make investors reluctant to pay high prices for stocks, which critics said already look too expensive after they rose faster than corporate profits.
The Dow Jones Industrial Average dropped one per cent, while the Nasdaq composite tumbled 1.6 per cent. Nvidia and other Big Tech stocks were among the market’s heaviest weights.
The yield on the 10-year Treasury rose again to 4.23 per cent from 4.21 per cent late Tuesday and from just 4.08 per cent on Friday.
Treasury yields have been climbing after a raft of reports have shown the United States (US) economy remains stronger than expected.
That’s good news for Wall Street, because it bolsters hopes that the economy can escape from the worst inflation in generations without the painful recession that many had worried was inevitable.
Boeing slipped 1.8 per cent in what could be one of the most consequential days in years for the troubled aerospace manufacturer.
The company reported a loss of more than USD6 billion for the latest quarter. Later Wednesday, Boeing factory workers voted 64 per cent against the company’s latest contract offer, opting to continue a six-week strike that has halted production of the aerospace giant’s bestselling jetliners. Boeing stock has lost nearly 40 per cent this year.
Big Tech stocks, whose prices have soared amid Wall Street’s frenzy around artificial-intelligence (AI) technology, were the heaviest weight on the market. Nvidia dropped 2.8 per cent and Apple shed 2.2 per cent.
But AT&T rose 4.6 per cent after reporting stronger profit for the latest quarter than analysts expected and Texas Instruments climbed four per cent after the semiconductor company reported stronger profit and revenue than anticipated.
In other dealings early yesterday, US benchmark crude oil gained USD1.27 to USD72.04 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, surged USD1.23 to USD76.19 per barrel.
The dollar slipped to JPY152.13 after surging above JPY153 on Wednesday. The euro rose to USD1.0799 from USD1.0783.
