04/10/2023
Today’s Announcements & News
Asia
On Tuesday, Hong Kong stocks led the decline in Asia-Pacific markets, with the Hang Seng index closing 2.69% lower at 17,331.22. Earlier in the session, it had fallen by more than 3%. Meanwhile, in Australia, the S&P/ASX 200 traded down 1.28% to close at 6,943.4 after the central bank maintained rates at 4.10%, as expected. In Japan, the Nikkei 225 dropped 1.64% to close at 31,237.94. South Korean and Chinese markets were closed for holidays. In the U.S., the Dow Jones Industrial Average declined 0.22%, the S&P 500 inched up 0.01%, and the Nasdaq Composite rose by 0.67% in overnight trading.
US
On Tuesday, stocks experienced a significant decline as Treasury yields reached their highest levels since 2007. This raised concerns that higher interest rates could negatively impact the housing market and potentially lead the economy into a recession.
The Dow Jones Industrial Average lost 454 points, representing a 1.3% decline. This was its largest drop since March. S&P 500 slid 1.4%, reaching its lowest level since June.
Nasdaq Composite saw a 2% drop, with growth stocks being particularly affected by the rising rates.
This decline pushed the Dow into negative territory for the year, while the broader S&P 500, despite the drop, remained up 10% for 2023.
Commodity
Oil prices saw a slight recovery on Tuesday after reaching a three-week low. Brent crude oil futures were down 10 cents, trading at $90.61 a barrel, while U.S. West Texas Intermediate crude gained 37 cents to reach $89.19 per barrel. Prices had earlier fallen to $87.76, the weakest since September 12.
This recovery came as the U.S. dollar strengthened to a 10-month high against major peers, and economic data fueled expectations that the Federal Reserve might keep rates higher for a longer duration or even raise them further.
In the gold market, prices remained near a seven-month low, with spot gold down 0.3% at $1,822.42 per ounce and U.S. gold futures shedding 0.4% to reach $1,840.00 per ounce. These declines were attributed to a strong dollar and elevated bond yields, reflecting the belief that U.S. interest rates would remain higher for an extended period.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
