Global markets update: Wall Street slip, crude gains on Russia tensions, rate hike worries

All three major US stock indexes ended in the red, with megacap momentum stocks dragging the high-tech Nasdaq to its sharpest decline, down 1.16%.

The Dow Jones Industrial Average fell 12.72 points, or 0.04%, to 33,714.71, the S&P 500 lost 19.51 points, or 0.45%, to 4,328.82 and the Nasdaq Composite fell 156.74 points, or 1.73,33%.

“We’re in a bit of a correction, with (Fed Chairman Jerome) Powell still talking about keeping rates higher for longer,” Reuters reported citing Paul Nolte, senior wealth advisor and market strategist at Murphy & Silvest in Elmhurst, Illinois

“A lot of those big tech companies were running pretty big, so we’re seeing a rotation into small caps and value, which is going well because they’re all very cheap today,” Nolte said. .

In Treasuries, US Treasury yields were mostly lower as investors grappled with the Fed’s “higher for longer” message even as the economy begins to slow. Benchmark 10-year notes 7/32 rose in price to 3.7134%, from 3.739% late Friday. The 30-year bond last rose 4/32 in price to yield 3.8142%, from 3.82% late Friday.

In cryptocurrencies, the Bitcoin fell 0.9% to $30,115.19, while Ether fell 2.4% to $1,849.31.

In currency, the dollar index fell 0.14%, while the euro rose 0.16% to $1.0906. The Japanese yen strengthened 0.16% against the greenback at 143.50 per dollar, while Sterling last traded at $1.2712, up 0.01% on the day.

On the energy front, oil prices rose as political turmoil in Russia raised concerns about supply disruptions. US crude rose 0.30% to settle at 69.37 a barrel, while Brent settled at $74.18 a barrel, up 0.45% on the day.

Gold rallied, easing from the previous session’s three-month low as geopolitical reverberations from Russia overwhelmed a Fed hawk. Spot gold added 0.1% to $1,922.39 an ounce.

Emerging market stocks lost 0.26%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.35% lower.

Canada

Canada’s main stock index rallied on Monday as higher oil prices lifted energy shares and investors awaited domestic inflation data that could provide clues about the Bank of Canada’s policy outlook.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 169.09 points, or 0.9%, at 19,587.32, after posting its lowest closing level in three months on Friday.

European shares

European markets closed slightly lower on Monday dragged down by healthcare stocks, defensive shares fell after the Russian events. Investors digested weak economic signs after an up week.

The pan-European Stoxx 600 index temporarily closed 0.1% lower to end a choppy session. Gains were led by chemicals, up 0.9%, as oil and gas stocks rose 0.8%. Healthcare stocks were the biggest losers, down 1.1%. MSCI’s gauge of stocks across the globe lost 0.26%.

Asian markets

In Asia, Hong Kong’s Hang Seng Index was down 0.51% at 18,794.13. China’s Shanghai Composite was 1.48% down at 3,150.62

Japan’s Nikkei 225 was down 0.25% at 32,698.81.

Australia’s S&P/ASX 200 index ended 0.29% down at 7,078.70. New Zealand’s benchmark S&P/NZX 50 index closed 0.84% ​​lower at 11,638.68.

(With input from frpm agencies)

Updated: 27 June 2023, 03:09 AM IST