Global Markets DJIA 34754.93 274.17 0.80% NASDAQ 13893.84 279.06 2.05% S & P 500 4463.12 51.45 1.17% FTSE 100 7404.73 19.39 0.26% Nikkeia Stock Closed Hanging Seng 21441.90 29.50 0.14% KOSPI 2697.32 -9.70 -0.36% SGX Nifty * 17388.00 106 0.61% * March Contract USD/JPY 119.15-16 +0.01% range 119.31 119.09 EUR/USD 1.1047-50 -0.02% range 1.1072 1, 1039 CBOT Wheat May $10.636 per bushel Spot Gold $1,922.40/oz 0.1% Nymex Crude (NY) $104.73 $1.75 US STOCKS
Major US stock indexes posted their best week since November 2020 as oil prices stayed below recent highs and investors welcomed signs of confidence in the US economy from the Federal Reserve.
The gains pushed the S&P 500, the Dow Jones Industrial Average and the tech-heavy Nasdaq Composite into positive territory for March, despite elevated commodity prices and geopolitical fears that have weighed on stocks of late.
The S&P 500 rose 51.45 points, or 1.2%, to 4463.12 on Friday. The Dow Jones Industrial Average rose 274.17 points, or 0.8%, to 34754.93. The Nasdaq Composite rose 279.06 points, or 2%, to 13893.84.
The S&P 500 ended Friday up 6.2% for the week, while the Dow Jones Industrial Average gained 5.5% during the period. The tech-heavy Nasdaq Composite rose 8.2%. All three indices posted their best weekly performance since the week ended November 6, 2020.
ASIAN EQUITIES
South Korea’s Kospi falls 0.2% to 2702.39 in the mixed early trade. Technology and internet stocks are weaker while retail and energy stocks are higher. Easing of Covid-19 restrictions at home and firm trade data for early March are supporting sentiment, but the war in Ukraine weighs heavily on investors’ minds as Russia’s offensive on Ukrainian cities continues with ceasefire talks still making significant headway have to. USD/KRW is last 0.5% higher at 1,213.80 on risk aversion. Index heavyweight Samsung Electronics is down 0.6%. Memory chip maker SK Hynix fell 0.8%. Retailer E-Mart gains 3.7%. Battery maker LG Energy Solution climbs 2.5%.
Hong Kong’s Hang Seng index rose 1.9% to 21823.07 in morning trade, tracking gains in Chinese tech ADRs on Friday. The Hong Kong stock market was expected to rise today on gains in tech stocks and test resistance at 22000, KGI Securities said. The Hang Seng Tech Index rose 3.3% to 4631.51. Among technology stocks, gains were led by Alibaba Group, which rose 6.6%, while Alibaba Health Information Technology rose 5.9% and Tencent Holdings rose 2.9%. Other gainers included ENN Energy, which rose 12% after reporting 2021 net income. Among the detractors was New World Development Co., down 1.3%.
Chinese stocks rose in morning trade amid mixed trading among regional stocks. The Shanghai Composite Index was up 0.1% to 3,254.81, the Shenzhen Composite Index was up 0.3% to 2,151.00 and the ChiNext Price Index was up 0.6% to 2,729.12. Auto shares gained, with SAIC Motor up 0.4%, BYD Co. up 1.9% and Great Wall Motor up 0.5%. The focus will continue to be on coronavirus developments in the country after Chinese authorities updated diagnosis and treatment guidelines for Covid-19, which could significantly shorten lengths of hospital stays and reduce disruption to economic activity, OCBC said.
Markets in Japan were closed on Monday for a public holiday.
FOREX
Forex markets “acted like the war was over,” Informa Global Markets’ Bruce Clark told the WSJ as the DXY dollar index fell 1% last week despite a small gain on Friday. Clark warned that demand for the greenback would likely come back “if there was an escalation in anything” as the currency “has been a primary safe haven currency through it all.” Clark also said he was skeptical that the Fed would be able to raise rates as aggressively as it has hinted at, which he believes would weaken the dollar. The greenback was slightly stronger against the yen and the euro, and weakened against other major currency pairs.
METALS
Gold was slightly higher in early Asian trade. Gold futures had settled lower on Friday after the Federal Reserve decided last week to raise interest rates for the first time since 2018. The focus will likely be on progress in talks between Russia and Ukraine, Commerzbank said. “For a while, the hope that peace talks between officials of Russia and Ukraine could lead to an end to the war weighed on its price,” it said. Spot gold rose 0.1% to $1,922.40/oz.
OIL SUMMARY
Oil rose in Asian trade after talks between Ukraine and Russia showed little progress. Financial markets still largely determined oil prices by assessing the likelihood of a diplomatic solution to the Ukraine conflict, the CBA said. “However, physical bottlenecks related to the current sanctions against Russia will ultimately play a dominant role in determining oil prices,” CBA said. Meanwhile, the market is also keeping an eye on the new wave of Covid-19 outbreaks in China, which has led to some of the toughest virus-related restrictions since early 2020, ANZ said. Front month WTI crude futures rose 2.1% to $106.93/bbl, while Brent rose 1.9% to $110.01/bbl.
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(ENDS) Dow Jones Newswires
Mar 20, 2022 23:15 ET (03:15 GMT)
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