ASX futures were 16 points or 0.23% higher at 6847 at 5:00am on Tuesday, possibly setting the stage for a rise at the opening. United States markets were closed for Labor Day.
Commodities: Brent crude increased 2.92% to US$95.74, gold slipped 0.12% to US$1,710.10.
The yield on Australia's 2 year government bonds was 2.68%, and the yield on the 10 year was 3.64%. Meanwhile, in the U.S., yields were at 3.39% for U.S. 2 year notes and down to 3.19% for the 10 year.
The Australian dollar was at 67.98 US cents, having made a late tumble from yesterday's 68.10. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently up at 101.12.
Asia
Chinese shares had a mixed session as investors processed Caixin services PMI data and the implications of the country’s drought-driven power crunch. The benchmark Shanghai Composite Index advanced 0.4% to 3199.91, the Shenzhen Composite Index fell 0.1% to 2088.09 and the ChiNext Price Index added 0.2% to 2538.20. Worries about the country’s Covid-19 outbreaks are expected to linger at least as long as authorities impose broader lockdowns on towns and cities. “Covid-19 disruptions to business activity and sales execution will also weigh on consumer sentiment, and buyers’ anticipation of softer property prices will postpone property purchases,” says Moody’s analyst Daniel Zhou. Chinese liquor company stocks were down, with shares of Kweichow Moutai slipping 2.1 percent and Wuliangye Yibin sliding 1.7 percent.
Hong Kong’s Hang Seng Index fell 1.2% to 19225.70, the index’s lowest close in more than five months, as a broadening of Covid-19 curbs in China added to investor concern. BYD was among the worst performers, ending down 5.9% lower for a sixth consecutive session, after Warren Buffett’s Berkshire Hathaway had cut further its stake in the automaker. Its peer, Geely Auto jumped down 7.0%. Among technology shares, Alibaba Group and Tencent Holdings lost 2.4% and 2.9%, respectively. But shares of coal miners rose on tight energy supplies, after the pandemic fallout and high temperatures in parts of the country. Yankuang Energy jumped 12% to a record high close and China Shenhua Energy rose 3.8%, as Cnooc, PetroChina and Sinopec all advanced 1.9%-2.5%.
Japanese stocks declined, pressured by falls in auto and food stocks, in as the market continued to worry about the higher fuel and other material costs. Shares of Denso Corp. fell 2.1%, and Suntory Beverage & Food was down 2.0%. Also propping up the market were advances in energy shares, which helped to offset some of the declines. The Nikkei Stock Average fell 0.1% to 27619.61. Attention is on the OPEC+ meeting later in the day and its potential impact on crude-oil prices. That left USD/JPY at 140.42, versus 140.21 late Friday in New York. The yield on the 10-year Japanese government bond slipped half a basis point to 0.230 percent.
Europe
The European indexes also finished lower for the day. Across the Atlantic, the pan-European STOXX Europe 600 was 2.58 points, or 0.62%, lower, at 413.39, the German DAX fell 289.49 points, or 2.22%, to 12760.78, and the French CAC 40 was down 74.29 points, or 1.20%, to 6093.22.
In London, the FTSE 100 Index is down 1.2%, or 87 points at 7193 as declines for industrial shares overshadow gains for oil and mining stocks. The big losers include packaging groups Smurfit Kappa, DS Smith and Mondi, and chemical companies Croda International and Johnson Matthey, together with steam-systems maker Spirax-Sarco Engineering and industrial-turnaround specialist Melrose Industries.
Continue Reading Harbour Also among the small number of risers with Russia reported to have cut off gas supplies to Europe via its Nord Stream 1 gas pipeline, sending Brent crude 2.7% higher to $95.50 a barrel. Miners Glencore, BHP, Rio Tinto, Antofagasta and Anglo American also rise as precious and base-metal prices mostly gain ground.
North America
The US Markets were closed on Monday for Labor Day, but the US stock futures rose. Futures tied to the S&P 500 as well as the Dow Jones Industrial Average and the Nasdaq 100 also gained.
