Major US indexes fall as Fed rate hike fears return

07Sep

Major US indexes fall as Fed rate hike fears return

 

Stocks sold off Wednesday, continuing the sluggish start to September, as concerns mounted that the Federal Reserve may not be done hiking interest rates.

The Dow Jones Industrial Average sank 198.78 points, or 0.57 per cent, to end at 34,443.19. The S&P 500 dropped 0.7 per cent to finish at 4,465.48, while the Nasdaq Composite shed 1.06 per cent to close at 13,872.47.

Treasury yields jumped, weighing on risk assets again. The yield on the 2-year Treasury note was last up about 6 basis points and trading above the 5 per cent level.

Pressured by rates, technology stocks underperformed, with the tech-heavy Nasdaq notching a third straight day of losses. The biggest laggards included Nvidia and Apple, dropping more than 3 per cent each. Along with Apple, Amgen and Boeing fell about 2 per cent each, weighing on the Dow.

Wednesday’s rise in Treasury yields coincided with stronger-than-expected economic data that fueled some concern over the likelihood of further hikes. Recent readings on both the services and manufacturing sectors of the US economy show that prices are moving in the wrong direction.

The prices component of the ISM services index rose 2.1 percentage points to 58.9 per cent in August, representing the share of companies reporting increases as well a four-month high.

Following the services report, the probability that the Federal Reserve will raise interest rates in November increased. As of Wednesday afternoon, traders are pricing in a greater than 40 per cent probability of a hike in November and a 93 per cent chance that the central bank holds rates steady this month, according to the CME Group.

Turning to commodities, platinum is set to experience a record supply deficit of over one million ounces in 2023 due to strong demand and flat supply. Global demand for platinum is expected to grow by 27 per cent to 8.2 million ounces in 2023, while supply will remain unchanged at 7.2 million ounces, partly due to electricity shortages in South Africa. The WPIC anticipates continued growth in automotive and industrial consumption, supporting platinum demand in 2024 and beyond.

Turning to US sectors, Utilities was the best performer overnight, followed by Energy. All other sectors closed lower. Tech was the worst performer.
 
Futures

The SPI futures are pointing to a 0.5 per cent fall.

Currency

One Australian dollar at 7:25 AM was buying 63.83 US cents.

Commodities

Gold lost 0.43 per cent. Silver dropped 1.55 per cent. Copper fell 1.62 per cent. Oil added 0.98 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.16 per cent, Frankfurt slipped 0.19 per cent, and Paris closed 0.84 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.62 per cent, Hong Kong’s Hang Seng lost 0.04 per cent while China’s Shanghai Composite closed 0.12 per cent higher.

The Australian sharemarket closed 0.78 per cent lower at 7,257.

Ex-dividends

Auswide Bank Ltd (ASX:ABA) is paying 21 cents fully franked
Air New Zealand (ASX:AIZ) is paying 5.5453 cents unfranked
APM Human Services (ASX:APM) is paying 5 cents fully franked
ASX Limited (ASX:ASX) is paying 112.1 cents fully franked
AUB Group Ltd (ASX:AUB) is paying 47 cents fully franked
BHP Group Limited (ASX:BHP) is paying 125 cents fully franked
Beacon Lighting Grp (ASX:BLX) is paying 4 cents fully franked
Contact Energy Ltd (ASX:CEN) is paying 18.9331 cents unfranked
Cryosite Limited (ASX:CTE) is paying 1.5 cents unfranked
Ebos Group Ltd (ASX:EBO) is paying 46.771 cents 95.77 per cent franked
Emeco Holdings (ASX:EHL) is paying 1.25 cents fully franked
Fleetwood Ltd (ASX:FWD) is paying 2.1 cents fully franked
G8 Education Limited (ASX:GEM) is paying 1.5 cents fully franked
Globe International (ASX:GLB) is paying 5 cents fully franked
Helloworld Travl Ltd (ASX:HLO) is paying 6 cents fully franked
Insignia Financial (ASX:IFL) is paying 9.3 cents unfranked
Laserbond Limited (ASX:LBL) is paying 0.8 cents fully franked
Michael Hill Int (ASX:MHJ) is paying 3.5 cents unfranked
McMillan Shakespeare (ASX:MMS) is paying 66 cents fully franked
Monadelphous Group (ASX:MND) is paying 25 cents fully franked
Monash IVF Group Ltd (ASX:MVF) is paying 2.2 cents fully franked
Perpetual Limited (ASX:PPT) is paying 65 cents 40 per cent franked
Resimac Grp Ltd (ASX:RMC) is paying 4 cents fully franked
Reliance Worldwide (ASX:RWC) is paying 7.7481 cents unfranked
SDI Limited (ASX:SDI) is paying 1.75 cents fully franked
Schaffer Corp. Ltd (ASX:SFC) is paying 45 cents fully franked
Shriro Holdings Ltd (ASX:SHM) is paying 6.5 cents fully franked
Smartgrp Corporation (ASX:SIQ) is paying 15.5 cents fully franked
Skycity Ent Grp Ltd (ASX:SKC) is paying 5.5473 cents unfranked
Sky Network (ASX:SKT) is paying 8.3179 cents unfranked
Super Retail Group (ASX:SUL) is paying 69 cents fully franked
Tribeca Global (ASX:TGF) is paying 5 cents fully franked
Thorney Opp Ltd (ASX:TOP) is paying 1.45 cents fully franked

Dividends payable

Ansell Ltd (ASX:ANN)
Magellan Financial Group Ltd (ASX:MFG)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2023 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

12Aug

Wall St mixed, U.S inflation rose at a slower pace, Bumble rose as Virgin Galatic falls, Why James Hardie is a buy: ASX poised to open higher

12 Aug 2021 - Major indexes around the globe continued its trend as investors' nerves eased on the lower-than-expected rise of the U.S consumer price index. M&A activity in Europe helped their climb. A review of ASX activity yesterday buoyed by big names. Why Citi upgrades James Hardie (ASX:JHX) as a buy.

Read More
29Apr

Wall St slips as Fed holds rates: ASX to rise

29 Apr 2021 - The ASX is set to rise despite Wall St dipping into the red. US stocks slipped as the Federal Reserve held rates and maintained their support for the economy. Australian shipbuilder Austal (ASX:ASB) is set to sell 40% of its stake in a shipbuilding company in China.

Read More
09Dec

Ten-year high for the Consumer Sentiment Index: ASX closes 0.6% higher

09 Dec 2020 - It has been a positive day of trade for the ASX, which closed 0.6% higher. Shares in Healius (ASAX:HLS) did well today after reporting its pathology business continued its strong revenue growth in October and November. Shares in Perseus Mining (ASX:PRU) didn’t perform so well today after a stellar day yesterday.

Read More
23Dec

Investors monitor new Covid strain in the UK: ASX set to open higher

23 Dec 2020 - Following mixed leads from US markets, the ASX looks set to open higher. Stocks recovered ground across Europe yesterday. New South Wales residents wait anxiously to hear from the Premier later today on social gathering restrictions for Christmas. The number of cases in the state has so far been tracking down from 30 to just 8 yesterday. Challenger (ASX:CGF) has entered into an agreement to acquire MyLifeMyFinance for $35 million.

Read More
17Feb

Huge reporting week ahead: ASX poised to open lower

17 Feb 2020 - Following mixed leads from US markets, the ASX looks set to open higher this morning. It’s a huge reporting week this week with more than 70 companies due to report such as BHP, Coles, Crown, Fortescue Metals, and Qantas and Santos. Universal Coal (ASX:UNV) made a recommendation to its shareholders on Friday to take no action regarding the unsolicited bid by TCIG Resources Pte.

Read More
07May

Link (ASX:LNK) hit by COVID-19: Aus shares 0.6% lower at noon

07 May 2020 - The Australian share market opened lower this morning and is now trading 0.6 per cent lower at noon. Link (ASX:LNK) says areas of its business has been hit by the COVID-19 pandemic.

Read More
09Sep

Postive but minor start to week:Aus shares close 0.1% higher

09 Sep 2019 - Local shares start week with a minor gain while Jumbo Interactive (ASX:JIN), Qube (ASX:QUB), Aventus (ASX:AVN) set new all-time highs. Aussie lending to households sees most growth in five years, but remains at lows compared to 2017. Wesfarmers (ASX:WES) books WesCEF site tour and takeover Kidman Resources (ASX:KDR) later this month, subject to court approval.

Read More
11Jan

ASX200 regains Feb 2020 levels: ASX shares close 2.5% higher over week

08 Jan 2021 - The ASX200 opened lower but advanced over the session to end 0.7 per cent higher today. The index is sitting at a level we haven’t seen since late February 2020, before the impacts of Covid wreaked havoc on the market. Oil and gas explorer, FAR (ASX:FAR) has postponed its shareholder meeting which was scheduled to consider Woodside Energy’s offer to buy its interest in the RSSD project in Senegal. The postponement was made to allow...

Read More
10Jun

All time highs for big tech companies: ASX poised to open lower

10 Jun 2020 - Following a fall from US markets overnight, the ASX looks set to open lower this morning. Stocks regained US$21 trillion in value from a March low. The Nasdaq hit a new record with Facebook, Apple, Amazon and Microsoft all hit new all-time highs yesterday. Oil jumped as fuel demand recovers from April’s collapse. Meridian Energy (ASX:MEZ) are pleased to see a decision has been made by the Electricity Authority on the Transmission Pricing Methodology Guidelines...

Read More
02Dec

Economy expands 3.3% in September quarter: ASX tracking 0.3% lower at noon

02 Dec 2020 - The ASX had a promising open then took a tumble before midday trade and is now tracking 0.3% lower at noon. Shares in Mesoblast (ASX:MSB) soared today after they announced the FDA has a fast track designation for remestemcel-L in the treatment of Covid-19 infection symptons. Materials is the only sector in the black so far today. Nickel Mines (ASX:NIC) has launched a $364 million capital raising to fund its initial 30% interest in the...

Read More