US stocks rebound as oil prices ease amid Middle East tensions

Stocks rebounded on Tuesday after a losing session on Wall Street, as oil prices eased and investors assessed ongoing tensions in the Middle East.

The S&P 500 rose 0.97 per cent to close at 5,751.13, while the Nasdaq Composite gained 1.45 per cent, finishing at 18,182.92. The Dow Jones Industrial Average added 126.13 points, or 0.3 per cent, ending at 42,080.37.

Looking at the S&P500 sectors, technology sector led the gains on Tuesday, with Nvidia and Broadcom rising 4 per cent and 3 per cent, respectively.

The worst performer was Energy, dropping 2.63 per cent after West Texas Intermediate oil futures fell 4.6 per cent on Tuesday as traders monitored the developing tension in the Middle East.

Iron ore dropped from a five-month high, and base metals declined sharply after a highly anticipated briefing by China’s top economic planner concluded without any new commitments to increase government spending.

Iron ore futures in Singapore fell over 5 per cent after rising nearly that amount in the lead-up to the briefing. Copper also saw a significant decline, reaching its lowest point in two weeks amid a broad sell-off across base metals, with investor disappointment evident throughout wider Chinese markets.

In company news, U.S.-listed shares of Chinese companies experienced a decline after Beijing’s breifing. Online video platform Bilibili dropped 13 per cent, while automaker Nio fell by about 8 per cent. E-commerce giants JD.com dropped 11.9 per cent and Alibaba declined 8.8 per cent.

Shares in Casino operators Las Vegas Sands and Wynn Resorts fell around 3 percent due to their connections to China through their Macau resorts.

Futures

The SPI futures are pointing to a 0.2 per cent gain.

Currency

One Australian dollar at 7.50am was buying 67.47 US cents.

Commodities

Gold lost 1.03 per cent. Silver dropped 3.54 per cent. Copper was down 2.16 per cent. Oil dropped 4.39 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 1.36 per cent, Frankfurt lost 0.20 per cent, and Paris fell 0.72 per cent.

Turning to Asian markets, Tokyo’s Nikkei fell 1.00 per cent, while Hong Kong’s Hang Seng dropped 9.41 per cent and China’s Shanghai Composite gained 4.59 per cent.

Yesterday, the Australian share market closed 0.35 per cent lower at 8177.

Dividends payable

Briscoe Group Ltd (ASX:BGP)
Count Ltd (ASX:CUP)
Duratec Ltd (ASX:DUR)
Inghams Group Ltd (ASX:ING)
News Corp (ASX:NWS)
NRW Holdings Ltd (ASX:NWH)
Perseus Mining Ltd (ASX:PRU)
Southern Cross Electrical Engineering Ltd (ASX:SXE)
Wesfarmers Ltd (ASX:WES)

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

Disclaimer

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