Tag: US Stocks

Asian stocks tumble as Italian crisis knocks global sentiment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares extended a global sell-off in early trading Wednesday as Italy’s political crisis provoked a heavy retreat on Wall Street, sent the euro to a 10-month low and pushed up borrowing costs for the government in Rome.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.1 percent, while Japan’s Nikkei average shed 1.7 percent to hit a six-week low. South Korea’s KOSPI and the Australian stock benchmark slipped 1.6 percent and 0.7 percent, respectively.

On Wall Street on Tuesday, the Dow Jones Industrial Average fell 1.58 percent to 24,361.45, the S&P 500 lost 1.16 percent to 2,689.86 and the Nasdaq Composite dropped 0.5 percent to 7,396.59.

Investors fear that repeat elections in the euro zone’s third-largest economy – which could come as soon as July – may become a de-facto referendum on Italian membership of the currency bloc and the country’s role in the European Union.

Short-dated Italian bond yields – a sensitive gauge of political risk – soared 1.5 percentage points from Monday to their highest since 2013 in their biggest move in nearly 26 years.

Tradeweb Markets LLC reported average trading volume in the debt is up by more than 60 percent in May compared to the month prior.

Safe-haven US Treasury bonds and German bunds rallied, as did the Japanese yen, the US dollar and gold. The euro fell against the Swiss franc, Japanese yen and US dollar, nearing $1.15 and touching its lowest point since July.

“It’s not surprising that investors fled fragile emerging markets and southern Europe and sought safety in cash,” said Yasuo Sakuma, chief investment officer at Libra Investments.

“I have been waiting for a 5 percent correction for some time. But I probably wouldn’t start buying on a full scale unless the Nikkei drops below the 21,000 level and financial names stabilize.”

In Asia, the focus was also on the on-again, off-again US-North Korean summit and the US-China trade relationship.

An aide to North Korean leader Kim Jong Un arrived in Singapore on Monday, Japanese public broadcaster NHK reported, and the White House said a “pre-advance” team was traveling to the city to meet the North Koreans.

The reports indicate that planning for the summit, initially scheduled for June 12, is moving ahead.

The United States also said on Tuesday that it would continue pursuing actions on trade with China, days after Washington and Beijing announced a tentative solution to their dispute and suggested that tensions had cooled.

Emerging market stocks lost 0.5 percent, marking a new low point for the year, under continued pressure from a rising US dollar for countries that often borrow in that currency.

Oil struggled under pressure from expectations that Saudi Arabia and Russia would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as US output has surged in recent years.

US crude futures stood at $66.45 per barrel after falling for five sessions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US stock futures up on North Korea, euro shaken by Italy, oil falls

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US stock futures rose on Monday on signs that the United States and North Korea are still working towards holding a summit next month, while oil prices extended losses on expectations of more supply from major producers.

The euro edged up from a 6-1/2-month low but is seen vulnerable after efforts to form a coalition government in Italy, the currency bloc’s third-biggest economy, collapsed over the weekend.

US S&P500 mini futures rose 0.3 percent in early Asian trade, but market holidays in the world’s two biggest financial centers — London and New York — could make trading slow and illiquid for the day.

Japan’s Nikkei gained 0.3 percent in early trade, while South Korea’s Kospi rose 0.5 percent, buoyed by stocks which are seen as benefiting from a further thawing in tensions with Pyongyang.

But markets elsewhere in Asia appeared little fazed by the latest North Korean news after a week of conflicting signals from Washington. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.

President Donald Trump said on Sunday a US team had arrived in North Korea to prepare for a proposed summit between him and North Korean leader Kim Jong Un, which Trump pulled out of last week before reconsidering.

“While we can’t say for sure how much they can agree, both sides seem to want to make progress,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.

Mizuho sees a 10 percent chance that the summit, so far planned on June 12, will not take place, a 20 percent chance of a truce deal struck at the meeting and a 70 percent likelihood of the summit leading to more talks without producing immediate deals on denuclearisation, he said.

Oil prices extended their decline since last Tuesday on growing expectations that major oil producers may ease their 17-month-old production cuts.

A return to the oil production levels that were in place in October 2016, the baseline for the current deal to cut output, is one of the options for easing curbs, Russia’s energy minister said on Saturday.

His comments came after the energy ministers of Russia and Saudi Arabia met to review the terms of a global oil supply, ahead of a key OPEC meeting in Vienna next month.

Brent crude futures dropped to as low as $75.71 per barrel, their lowest level in about three weeks. They last stood at $76.05, down 0.5 percent.

US crude futures dropped to $67.00 per barrel, their May 1 low of $66.85 and last stood at $67.37, down 0.8 percent.

In the currency market, the euro bounced back from a low of $1.1646 touched on Friday to trade at $1.1685.

Italian president Sergio Mattarella rejected a eurosceptic pick for the key economy ministry by the two anti-establishment parties aiming to form a coalition government, the 5-Star Movement and the League.

5-Star leader Luigi Di Maio, whose party won the most seats at an inconclusive March 4 vote, demanded that parliament impeach Mattarella, triggering a possible constitutional crisis and opening the prospect of fresh elections.

The 10-year Italian bond yield has risen 67 basis points, or 0.67 percentage point, so far this month, on course to make its biggest monthly rise since late 2011.

Its yield spread over benchmark German Bunds rose above 200 basis points for the first time in over a year.

“If the Italian debt prices fall further, people will have to do more hedging, say by selling the euro and so on. The issue will be the biggest focus for markets this week,”

While no one thinks the country will default, people need to make hedging when they face sharp price moves,” said Takafumi Yamawaki, head of currency and fixed income research at J.P. Morgan Securities in Tokyo.

Investors are also increasingly wary of Spain, where Prime Minister Mariano Rajoy is facing growing pressure to resign over a graft case involving his party.

The spread of the Spanish-German debt yields rose to about 105 basis points, the highest since January.

The dollar rose 0.3 percent against the yen in early Monday trade to 109.66 yen, extending its recovery from Thursday’s 108.955 on optimism on the upcoming US-North Korea summit.

Elsewhere, bitcoin traded at $7,343, falling below its 365-day moving average, which stood around $7,360.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares tentative as Trump tempers China-US trade optimism

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares edged up on Wednesday but investors were cautious after US President Donald Trump tempered optimism over progress made so far in trade talks between the world’s two largest economies.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.15 percent while Japan’s Nikkei lost 0.2 percent.

On Wall Street, the S&P 500 shed 0.31 percent overnight, losing steam after hitting a two-month high.

Trump said on Tuesday he was not pleased with recent trade talks between the United States and China, souring the improved market sentiment following weekend comments from US Treasury Secretary Steven Mnuchin that trade war is “on hold”.

His remarks followed Beijing’s announcement that it would cut import tariffs for automobiles and car parts.

Trump also floated a plan to fine ZTE Corp and shake up its management as his administration considered rolling back more severe penalties.

“The market probably became overly optimistic on Monday. The reality is the talks are still continuing as they haven’t made headway on various issues, including intellectual properties,” said Norihiro Fujito, senior investment analyst at Mitsubishi UFJ Morgan Stanley Securities.

Further weighing on prices of risk assets, Trump also said there was a “substantial chance” his summit with North Korean leader Kim Jong Un will not take place as planned on June 12 amid concerns that Kim is resistant to giving up his nuclear weapons.

The cautious mood helped to underpin bonds. The 10-year US Treasuries yield stood at 3.063 percent, off Monday’s near seven-year high of 3.128 percent.

As lower US yields sap the appetite for the dollar, the euro traded at $1.1782, hovering above Monday’s five-month low of $1.1717.

Against the yen the dollar slipped to 110.81 from Monday’s four-month high of 111.395.

The biggest mover in the currency market was the Turkish lira, which fell almost two percent early on Wednesday to a record low after rating agencies sounded the alarm on Tuesday about plans by President Tayyip Erdogan to tighten his grip on monetary policy.

The lira has fallen almost 15 percent so far this month.

In commodities, oil prices held firm near 3-1/2-year highs on potential supply concerns surrounding Venezuela and Iran.

US West Texas Intermediate (WTI) crude futures traded little changed at $72.22 a barrel, a 0.15 percent loss. They touched $72.83 a barrel, the highest since November 2014, on Tuesday.

Brent futures stood at $79.56 a barrel. Last week, the global benchmark topped $80 for the first time since November 2014.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global stocks rally after Mnuchin says China-US trade war ‘on hold’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stocks rose on Monday as US Treasury Secretary Steven Mnuchin declared the US trade war with China “on hold” following an agreement to drop their tariff threats that had roiled global markets this year.

US S&P mini futures rose 0.60 percent in Asian trade on Monday.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.55 percent in early trade, led by strong gains in greater China. Hong Kong’s Hang Seng was up 1.0 percent, Taiwanese shares 1.1 percent and mainland shares 0.4 percent.

Japan’s Nikkei gained 0.4 percent.

Mnuchin and US President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.

“The weekend talk appears to have made progress. While they still need to work out details of a wider trade deal, it is positive for markets that they struck a truce,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

As safe-haven demand for debt fell, US bond prices were under pressure, keeping their yields not far from last week’s peaks.

The 10-year Treasuries yield stood at 3.065 percent, near a seven-year high of 3.128 percent hit on Friday.

“Recent data suggests the US economy is very strong, hardly slowing down in Jan-Mar. The world economy slowed in that quarter but it appears to be rebounding. And recent rises in oil prices are likely to lift inflation expectations further,” said Tomoaki Shishido, senior fixed income analyst at Nomura Securities.

“We expect more selling until the next Fed’s meeting in June,” he said.

In the currency market, higher US yields helped to strengthen the dollar against a wide range of currencies.

The euro dipped 0.1 percent to $1.1756, hovering above Friday’s five-month low of $1.1750.

The common currency was also hit after two anti-establishment parties pledged to increase spending in a deal to form a new coalition government.

The dollar maintained an uptrend against the yen, rising 0.20 percent to fetch 110.97 yen,, close to Friday’s four-month high of 111.085.

Oil prices held firm near 3-1/2-year highs also on easing trade tensions between the world’s two biggest economies.

The market is keeping an eye on Venezuela, where President Nicolas Maduro appeared to be set for re-election, an outcome that could trigger additional sanctions from the United States and more censure from the European Union and Latin America.

Oil prices have been supported by plummeting Venezuelan production, in addition to a solid global demand and supply concerns stemming from tensions in the Middle East.

US crude futures rose 0.8 percent to $71.83 per barrel, near last week’s 3 1/2-year high of $72.30 while Brent crude futures notched up 0.8 percent to $79.10 per barrel. It had risen to $80.50 last week, its highest since November 2014.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil surge keeps Wall Street’s losses in check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A surge in energy and industrial shares kept Wall Street’s losses in check on Thursday, even as a rise in US bond yields to a fresh seven-year high suggested more competition for equities.

The energy sector jumped 1.31%, giving the benchmark S&P 500 the biggest boost, as Brent crude touched $80 per barrel for the first time since November 2014.

The Russell 2000 index hit a record high for the second session in a row as small-cap companies continued to outperform.

Latest data showed the number of Americans on unemployment rolls last week fell to the lowest since 1973. Other data showed a pickup in factory activity in the mid-Atlantic region this month, with manufacturers saying they were asking for higher prices for their products.

The combination of a tightening labor market and firming inflation supports expectations the Federal Reserve will raise interest rates next month.

The industrial sector was up 0.6%, the second-biggest gainer among the 11 major S&P sectors.

“You have kind of a mixed bag of earnings numbers … the economic data generally speaking was pretty good and that’s leading to a little bit of mild buying in the market,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

On the Russell 2000, Nolte said, “I think you’re starting to see people come into that because it’s the only index that has put in a new high and you’ve got some interest.”

At 12:46 p.m. ET the Dow Jones Industrial Average was down 36.95 points, or 0.15%, at 24,731.98, the S&P 500 was up 0.28 points, or 0.01%, at 2,722.74 and the Nasdaq Composite was down 3.81 points, or 0.05%, at 7,394.48.

The three rate-sensitive sectors, including real-estate and utilities, were the biggest losers.

The market had opened in the red, weighed by a drop in Cisco and a rise in US 10-year Treasury yields to a seven-year high.

White House Chief Economic Adviser Larry Kudlow expects China to bring a proposal to the talks which would “extend the conversation and permit additional negotiations”.

Cisco fell 2.8%, the most on the Dow, after the company’s forecast indicated its transition to a software-focused business was a work in progress.

Walmart slipped 1.6%, reversing premarket gains, after it said profit margins were under pressure, despite sales and earnings beating expectations.

J.C. Penney tumbled 11.1% after its same-store sales missed estimates and the company cut its full-year profit forecast.

Advancing issues outnumbered decliners for a 1.52-to-1 ratio on the NYSE and for 1.97-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and four new lows, while the Nasdaq recorded 117 new highs and 21 new lows.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia stocks step back on tepid Wall Street, oil elevated

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asia stocks pulled back on Tuesday, after an uninspiring performance on Wall Street eclipsed support from US-China trade optimism, while supply concerns kept crude oil prices near 3-1/2-year highs.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.16 percent after rising 0.6 percent the previous day to its highest since late March.

Australian stocks inched up 0.05 percent, South Korea’s KOSPI shed 0.05 percent and Japan’s Nikkei was flat.

Wall Street scraped out gains on Monday after weakness in defensive stocks offset optimism following US President Donald Trump’s conciliatory remarks toward China’s ZTE Corp that helped calm US-China trade tensions. [.N]

Investors in Chinese equities will likely rejig their exposure after MSCI, the US index publisher, published its latest index weighting.

MSCI said on Tuesday that 234 Chinese large caps will be partially included in its global and regional indexes on June 1, following an index review ahead of China’s inclusion in MSCI’s widely tracked equity benchmarks.

Brent crude added 0.2 percent to $78.38 a barrel and in close reach of $78.53, the 3-1/2-year high marked on Monday. US crude oil futures advanced 0.15 percent to $71.07 a barrel and in reach of $71.89, the highest since November 2014 scaled on Thursday.

Oil prices received their latest lift as OPEC reported that the global oil glut has been virtually eliminated. Tensions in the Middle East and uncertainty about output from Iran amid renewed US sanctions have contributed to the recent rise in oil prices.

“The recent rise in prices of crude oil won’t have a broadly negative impact on equity markets if it continues at the current pace,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

“The rise in oil prices is boding well for certain stock sectors like energy shares.”

In currencies, the dollar index against a basket of six major currencies nudged up 0.1 percent to 92.661.

The greenback took a knock against the euro earlier on Monday after European Central Bank policymaker Francois Villeroy de Galhau said the ECB could give fresh timing guidance of its first rate hike as the end of its exceptional bond purchases approaches.

The US currency managed to bounce back, however, after Cleveland Federal Reserve President Loretta Mester reiterated support for gradual interest rate increases.

The euro stood little changed at $1.1930 after pulling back sharply from the previous day’s high of $1.1996.

The dollar was a shade higher at 109.755 yen, adding to the previous day’s gains.

The currency drew support as US Treasury yields rose amid the easing of US-China trade tensions.

The 10-year Treasury note yield was at 2.998 percent after rising about 2.5 basis points overnight.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wall Street gains as trade worries subside

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US stocks rose on Monday on signs of easing trade tensions between the United States and China after President Donald Trump softened his stance on Chinese technology company ZTE Corp.

Trump on Sunday pledged to help ZTE “get back into business, fast” nearly a month after the United States banned American companies from selling to the firm for violating an agreement.

Trump’s comments came ahead of trade talks between the two countries this week as they look to resolve the escalating trade dispute.

“At the moment, the market is breathing a sigh of relief that some of the fears over tariffs and inflation, in particular, have not been realized,” said Mike Baele, managing director at US Bank Private Client Wealth Management in Portland, Oregon.

“We are still not out of the woods, but it hasn’t escalated. The market is seeing it as a positive.”

Shares of some of the biggest suppliers to ZTE, including Acacia Communications, Oclaro and Lumentum Holdings, rose between 10.6% and 3.1%.

Chip stocks got a boost from news that China had resumed its review of chipmaker Qualcomm’s proposed $44 billion takeover of NXP Semiconductors. NXP surged 14.2% and Qualcomm 3%.

The Philadelphia semiconductor index was up 1.6%.

At 12:53 pm ET, the Dow Jones Industrial Average was up 102.65 points, or 0.41%, at 24,933.82, the S&P 500 was up 5.79 points, or 0.21%, at 2,733.51 and the Nasdaq Composite was up 28.55 points, or 0.39%, at 7,431.43.

The defensive utilities, telecoms and real estate were the only three losers among the major S&P sectors, while technology and healthcare indexes were the biggest boosts.

Energy stocks were the biggest percentage gainers, rising 0.8% as oil rose after OPEC reported that the global oil glut has been virtually eliminated.

“There is renewed vigor in the energy sector around the belief that maybe oil prices can stay up this time. That’s something new that the markets had not been playing,” said John Augustine, chief investment officer at Huntington Bank in Columbus, Ohio.

Xerox tumbled 5.7% after the US photocopier maker scrapped a planned $6.1 billion deal with Fujifilm Holdings.

Viacom Inc declined 6.7% after CBS Corp filed a lawsuit to stop controlling shareholder Shari Redstone from continuing with her plan to merge it with Viacom. CBS rose 3.2%.

Advancing issues outnumbered decliners for a 1.19-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and two new lows, while the Nasdaq recorded 106 new highs and 27 new lows.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia stocks rise as crude oil extends rally on Iran worries

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian stocks rose on Thursday, with energy shares leading the way as crude oil prices bolted higher after US President Donald Trump’s decision to pull out of a nuclear deal with Iran.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2 percent, while Japan’s Nikkei climbed 0.5 percent.

Elsewhere in Asia, a stunning election upset in Malaysia by the opposition sent ringgit forwards sliding more than 2 percent in offshore trade and the cost to insure against a Malaysian debt default rose.

Moody’s ratings agency said the country was now in uncharted territory after an alliance of opposition parties led by former prime minister Mahathir Mohamad shocked the ruling coalition.

“The surprise win by Mahathir’s coalition party is likely to see an increase in policy uncertainty at least in the short term with market volatility likely to be higher,” said Sian Fenner, lead Asian economist at Oxford Economics.

Special public holidays were declared for Thursday and Friday following the elections.

But, highlighting investor worries, the US-traded iShares MSCI Malaysia ETF plunged 6 percent overnight to a one-year low.

Overnight, the Dow gained 0.75 percent and the S&P 500 climbed nearly 1 percent, with the S&P energy index rallying 2 percent.

Energy shares soared as crude oil prices reached 3-1/2-year highs, with investors betting the US withdrawal from a nuclear agreement with Iran would increase tensions in the Middle East and curtail oil supply.

Rising oil prices in turn pushed up US Treasury yields by fanning inflation concerns. The 10-year Treasury note yield rose to a two-week high above the 3 percent threshold before pulling back a little to 2.996 percent.

Shored up by higher yields, the dollar climbed to a 4-1/2-month high of 93.416 against a basket of six major currencies overnight. The dollar index was last at 93.130.

The New Zealand dollar retreated to a five-month low of $0.6930 after the Reserve Bank of New Zealand (RBNZ) wrongfooted hawks by keeping interest rates steady and saying the next move might be a cut or a hike.

“The RBNZ surprised markets with a slight dovish shift. It kept the official cash rate (OCR) on hold, as was widely expected, but notably allowed for the OCR to move ‘up or down’, rather than simply on hold – a slightly dovish development in our view,” said Imre Speizer, economist at Westpac.

The euro crawled back to $1.1849 after slipping overnight to $1.1823, its lowest since late December. The dollar stretched its overnight rally to trade at 109.855 yen.

In commodities, US crude futures were up 0.4 percent at $71.44 a barrel after going as high a $71.50, the highest since November 2014.

Oil prices rose about 3 percent on Wednesday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global stocks dip on oil, tech weakness; oil slips after Trump remarks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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World stocks dipped on Friday amid weakness in the energy sector and as worries about a global slowdown in smartphone demand dented the technology sector, while oil prices fell after US President Donald Trump said prices were artificially high.

While the MSCI index of global stock markets was down 0.91% on the day, it was still poised for its second week in the black after a strong start to the corporate earnings season.

A robust earnings season could offset fears of slowing global growth and help stock markets recover from a turbulent first quarter which saw greater volatility, a trade spat between the United States and China, and increased geopolitical tensions in the Middle East over Syria.

“While fundamentals remain robust, geopolitics and trade war fears, concerns over slowing global growth, and idiosyncratic issues in the tech sector have all weighed,” Deutsche Bank strategists wrote in note to clients, noting that a full-blown trade war between the US and China was a major risk.

“In equities we see the recent correction as overdone, and the first quarter earnings season could act as the needed circuit breaker.”

Wall Street equities slid on weakness in energy stocks, dented by the falling oil prices, and a second session of limp tech stocks following a slide by Apple Inc and its suppliers on Thursday.

The Dow Jones Industrial Average fell 187.96 points, or 0.76%, to 24,476.93, the S&P 500 lost 19.45 points, or 0.72%, to 2,673.68 and the Nasdaq Composite dropped 72.64 points, or 1%, to 7,165.42.

Oil prices tanked after Trump said via Twitter that prices were “artificially very high” and “will not be accepted.”

US crude fell 0.42% to $68.00 per barrel and Brent was at $73.35, down 0.58% on the day.

However, they were still set for a second consecutive week of gains, buoyed by tightening supplies and continued support from OPEC and its allies on supply cuts.

The recent surge in oil prices to their highest for more than three years supported bond yields across the euro zone. Higher oil prices tend to push up inflation, which strengthens the case for tighter monetary policy and higher rates.

Asian shares slipped as a warning from the world’s largest contract chipmaker knocked the tech sector.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.45 percent lower, while Japan’s Nikkei lost 0.13%. Emerging market stocks lost 1.52%.

Shares in Europe fell 0.14% but were on track for a fourth week of gains.

Dovish remarks overnight from Bank of England Governor Mark Carney weakened sterling and helped the FTSE 100 index advance. It was last up 0.35%.

Sterling continued to fall against the dollar, hitting its lowest against the greenback since April 6.

Expectations of a British interest rate increase in May have shrunk to 40 percent from 70% earlier this week.

The dollar index, measured against a basket of peer currencies, rose 0.41 percent, with the euro down 0.54% to $1.2274.

Spot gold dropped 0.5% to $1,338.84 an ounce.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global Markets: Stocks, dollar rise as risk appetite returns; oil slips

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Wall Street led stocks higher globally on Thursday, despite declines in Asia, as investors focused on an earnings season expected to be strong and after US President Donald Trump cast doubt over the timing of his threatened strike on Syria.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow