ASX futures were down 11 points, or 0.1 per cent, at 7001 at about 8.00 am AEST, tipping a weaker start to trade.
The S&P 500 dipped after alternating between small gains and losses throughout Monday, extending a bumpy stretch for the stock market.
The broad stock-market gauge fell 0.4%. The Nasdaq Composite fell 0.6 percent. The Dow Jones Industrial Average was pinned to the flatline.
Shares of Meta and Netflix fell on Monday by 5.1% and 2%, respectively. Amazon, which has continued to buckle upward, gained 0.2%. The moves are the latest in a trend of divergent trading in so-called FAANG stocks that have pushed investors to rethink how they trade the red-hot tech group.
In local trade, the S&P/ASX 200 fell 0.1% to 7110.8, recovering some ground lost earlier in the day as commodity stocks drove gains. The benchmark was down as much as 1.0% but steadily clawed its way back to unchanged before edging lower at the end.
Energy stocks surged as Brent crude neared its highest intraday level in more than seven years. Santos, Woodside and Beach rose 1.6% to 2.0%. The materials sector rose 0.8%, supported by gains for iron-ore miners.
The best of the ASX 200 components was GrainCorp, which jumped 12% after the grain producer's annual guidance came in above analyst targets.
Stocks in health, telecommunications and property trust weighed while the heavyweight financial sector eased 0.35%.
Overseas, the broad pan-European Stoxx Europe 600 rose 0.7 percent. Major benchmarks in Asia were mixed. The Shanghai Composite Index jumped 2% as it reopened after the weeklong Chinese New Year holiday, even as a private gauge of China’s services sector eased to a five-month low. It marked its biggest one-day jump since May. Hong Kong’s Hang Seng Index finished about flat and Japan’s Nikkei 225 fell 0.7%.
In commodities, gold futures rose 0.8% to $US1822.20 a barrel; Brent crude fell 0.6% to $US92.72 a barrel; Iron ore gained 2.5% to US$128.42.
US jobs numbers were solid and hawkish comments from the European Central Bank and the Bank of England kept pressure on bond markets. Australian 10-year bond yield 1.99% US 10-year Treasury yield 1.92%. Yields fall when prices rise.
The Australian dollar was worth 71.21 US cents near 8. There, it was 71.02 at 0730.00am AEST, compared to a previous close of 70.76. The WSJ Dollar Index, which compares the US dollar with 16 others, slipped to 89.54.
Asia
Chinese stocks ended higher on the first trading day after the week-long Lunar New Year holiday, with construction-related and energy sectors leading the gains. Before this year’s annual conference of the National People’s Congress in March, the government will likely present further policies that place a stabilizing focus on growth with a corner emphasis on infrastructure and the manufacturing industry, according to Guotai Junan Securities. Anhui Conch Cement rose 7.5% and China Railway Group added 6.3%. Recent gains in crude prices lifted oil majors. PetroChina jumped 9.2%, while Sinopec climbed 4.1%. BYD Co. gained 7.8% after reporting upbeat sales data for January. The Shanghai Composite Index added 2.0%, the Shenzhen Composite Index advanced 1.0% and the ChiNext Price Index was up 0.3%.
Stocks in Hong Kong finished the session in much the same place where they started because of the market’s throttle down from a strong rally on Friday, when it opened after a multi day holiday. The Hong Kong benchmark Hang Seng index rose 6.26 points to close at 24579.55. Chinese oil majors racked up gains as crude continued its rise amidst heightened tensions between Ukraine and Russia. Cnooc climbed 4.2% and PetroChina added 3.3%. However, losses in the tech sector dulled that momentum as Alibaba slid 4.5% after it filed to register an additional 1 billion American depositary shares, which analysts said could indicate a possible intention to sell by a shareholder.
The Nikkei Stock Average dropped 0.7% to 27248.87, pressured by electronics and shipping shares on worries about more expensive borrowing. Electronics stocks were by far the worst performers after a number of electronics companies reported disappointing earnings. Olympus Corp. sank 12% after the company’s third-quarter profits fell short of expectations. Ibiden Co. traded 5.3% lower while Fuji Electric dropped 2.5%.
Europe
European stocks were higher in closing trade as investors continued to digest the better-than-expected US nonfarm payrolls report Friday. The pan-European Stoxx 600 was up 0.7 percent.
“After a listless morning that looked to be going the way of the bears, markets have brightened as the afternoon has progressed,” IG analyst Chris Beauchamp says.
But investors are still “nervy” because the January US nonfarm payrolls report could indicate renewed economic growth to keep stocks attractive, or the prospect of interest-rate hikes and high inflation could diminish growth and undermine equities, he says.
Yields on European government bonds added to gains made on Monday as markets continued to price in hawkish signals from the European Central Bank’s press conference on Thursday. Benchmark 10-year Italian and Greek bond yields posted their highest levels since spring 2020.
In London, the FTSE 100 gained 0.4 percent, as miners and financial stocks climbed after a robust reporting from China, although trading in the rest of Asia was mixed. Mining's showan party are BHP, American and Rio Tinto, while Scottish Mytf1, Barclays and Prudential also rise.
North America
The S&P 500 dipped after wobbling in and out of small gains and losses on Monday, extending a turbulent period for the stock market.
The broad stock-market gauge fell 0.4%. The Nasdaq Composite fell 0.6%. The Dow Jones industrial average clung to the flatline.
Stocks have gotten off to a rocky start this year, only exacerbated in recent days by extreme movements in big tech stocks. Shares of Meta Platforms fell last week, in their worst weekly decline ever, and Amazon registered its largest weekly gain since 2015. do these shares, after the companies reported earnings. The better-than-expected jobs report Friday also refocused traders on central-bank policy, which is poised to tighten amid the ongoing economic recovery.
The S&P 500 and Nasdaq were choppy during the day on Monday before sinking below the flat line at 3 pm New York time. Some analysts said the most recent earnings season has helped bring investors back to stocks in recent sessions. Last week, the S&P 500 wrapped its best week since December amid a series of twists and turns.
“We believe the earnings season has been quite constructive,” said Greg Boutle, head of US equity and derivative strategy at BNP Paribas.
Among the companies set to release results this week, Pfizer and KKR are due on Tuesday, and Uber Technologies and Walt Disney are due on Wednesday. Coca-Cola, PepsiCo and Twitter are scheduled for Thursday.
It’s been tough to impress investors this earnings season, though, despite the recent bounce. Companies beating estimates have simply been doing worse than they historically have, and those that have missed are facing punishment, wrote strategists at JPMorgan Chase & Co in a note to clients Monday. This is one of various indications that investors have turned too bearish in the past weeks, said JPMorgan’s Marko Kolanovic.
“The market should lift as extremely bearish sentiment dissipates,” Mr. Kolanovic said.
Shares of Meta and Netflix fell Monday, down 5.1% and 2%, respectively. Amazon climbed 0.2% as well. The moves are the continuation of a recent divergence in so-called FAANG stocks that has forced investors to rethink their approach in trading the hot tech group.
“We’ve been playing some volatility,” said Mike Bailey, the director of research at FBB Capital Partners. “No, we have been adding to some of the tech names the last few weeks.”
In company news, shares of Peloton jumped 21 percent after The Wall Street Journal reported that the stationary-bike company was attracting interest from Amazon and other potential buyers. Spirit Airlines rose 17 percent after the company said it was merging with Frontier Group.
Tyson Foods rose 12 percent after it reported it expected its sales for the year to be at the upper end of its guidance. Hasbro fell about 1% after reporting both revenue and profit that topped Wall Street estimates.
The yield on the 10-year Treasury note edged lower to 1.915%, from 1.930% Friday.
“Markets have been repricing we have seen that in the move higher in yields but I think we’re getting to a level where it’s hard to price in a much more hawkish outlook than the one we have today. Now we have started to see some stabilization,” said Esty Dwek, chief investment officer at FlowBank.
Cryptocurrencies moved higher Monday, with bitcoin up 5% from its price at 5 pm New York time on Friday. It traded around $42,800. The digital currency climbed above $40,000 Friday after two weeks below that threshold and has since held up its gains.
