Chinese stocks hammered across the globe
US equities were higher in Monday trading, ending just off session highs.
It will be a very busy week ahead with 165 S&P 500 companies reporting including all the Big Tech names. It is still too early however to get a good read on Q3 earnings season, where the bar seems low but risk to forward estimates has been ramping up.
Wall Street will also be watching for more inflation data, with the October manufacturing and services purchasing managers' indexes coming this week.
The Dow Jones Industrial Average traded 417 points higher, or 1.3 per cent. The S&P 500 was up 1.2 per cent, while the Nasdaq added 0.9 per cent.
The real news in the markets this week was the Hong Kong market where shares faced a wave of selling after the conclusion of the Chinese Communist Party’s national congress meeting over the weekend.
The Hang Seng Index fell 6.4 per cent on Monday, the biggest one-day decline since the global financial crisis. The selloff came after Chinese leader Xi Jinping cemented his control over the ruling Communist Party, appointing a number of loyalists to the party’s most powerful decision-making body and getting a convention-defying third term.
The selloff didn’t appear to be driven by the fundamentals of those companies but instead by investors’ expectations about the shifting balance between state-owned and privately owned enterprises in China. China’s vision of common prosperity and Xi’s plans for state-owned enterprises to take a more prominent role in the economy were key points in the speeches last week.
Chinese stocks in the US were weaker across the board overnight with Alibaba -12 per cent, Weibo -12 per cent & Tencent -14 per cent. Chinese EV makers also led the declines today.
Across the sectors the only real weakness was with commodity related companies – with commodity prices being impacted by Chinese related economic problems.
Currencies
One Australian dollar fell almost 1 cent overnight compared to the US dollar yesterday, buying 63.12 US cents (Mon: 63.84 US cents), 55.97 Pence Sterling, 94.11 Yen and 63.93 Euro cents.
Commodities
Iron ore futures are pointing to a 0.6 per cent fall.
Gold lost $2.50 or 0.2 per cent to US$1654 an ounce.
Silver added $0.12 or 0.6 per cent to US$19.18 an ounce.
Copper lost $4.15 or 1.2 per cent to US$343.30 a pound.
Oil lost $0.19 or 0.2 per cent to US$84.86 a barrel.
Futures
The SPI futures are pointing to a 0.4 per cent gain.
Figures around the globe
Across the Atlantic, European markets closed higher. Paris gained 1.6 per cent, Frankfurt added 1.6 per cent and London’s FTSE closed 0.6 per cent higher.
In Asian markets, Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng dropped 6.4 per cent and China’s Shanghai Composite lost over 2 per cent.
Yesterday, the Australian sharemarket added 1.5 per cent to close at 6779.
Ex-dividends
Clover Corporation (ASX:CLV) is paying 1 cent fully franked.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network
Source: Finance News Network
