Connect with us


As Chinas Gdp Slows Asian Stocks Are Trading Uneven

Asian stocks were neutral on Thursday, following Wall Street’s shaky day of trading. China said its economy grew at a 7.9% annual rate in the last quarter, down from 18.3% in January-March, indicating a slowing of the country’s remarkably quick rebound from the epidemic.

The Nikkei 225, Japan’s main stock index, fell 1.2% to 28,279.09.

The S&P/ASX 200 index in Australia fell 0.3% to 7,335.90.

The Kospi in South Korea rose 0.5% to 3,282.35 points.

The Hang Seng Index in Hong Kong increased by 1.1% to 28,082.00, while the Shanghai Composite Index increased by about 1.0% to 3,563.20.

According to Harpreet Bhal of ActivTrades, reaction to China’s newest report was modest.

“As worries about H2 growth emerge after a likely pick-up in global activity in the first half of this year, investors will be watching the dynamics of the narrative around China’s monetary and fiscal easing,” Bhal wrote in a commentary.

The S&P 500 gained 0.1% to 4,374.30 on Wall Street, after recovering from an early slip and then losing much of its momentum by late afternoon, as a rally in technology stocks was tempered by a slide in banks and oil companies.

The benchmark index recouped some of its previous day’s losses, but fell short of its all-time high achieved on Monday.

Despite increases by several major tech companies, including Apple, the Nasdaq composite fell 0.2% to 14,644.95.

The performance of small-cap stocks has continued to trail that of the larger market.

A new set of earnings reports from banks, airlines, and other companies, as well as the newest data showing another jump in inflation, elicited conflicting reactions from investors.

They also kept an watch on the Federal Reserve chair’s latest comments on inflation, in which he restated the Fed’s opinion that the recent increase in costs is only transitory.

“Investors are focusing on earnings right now because they still believe what the Fed says about inflation (and) that it is too early to start raising rates and perhaps impede a recovering economy,” said Sam Stovall, CFRA’s chief financial analyst.

The Dow Jones Industrial Average increased by 0.1% to 34,993.23 points.

The smaller-company Russell 2000 index fell 1.6% to 2,202.36.

Even after several of them reported strong earnings, banks were mainly down.

Despite reporting a more than five-fold increase in profits, Citigroup dipped 0.3%, supported by an stronger economy that resulted in fewer bad loans on the bank’s balance sheet.

After announcing its most profitable quarter in two years, Wells Fargo surged 4%, the most in the S&P 500.

Bank of America’s mixed performance disappointed investors.

It dropped 2.5% after posting strong profitability but disappointing revenue.

When consumers resume flying for work and pleasure, airlines have shown more signs of recovery.

After providing investors with an upbeat update on its second-quarter financial picture, American Airlines surged 3%.

Aside from earnings, investors are still keeping a careful eye on inflation indicators to see how it can affect the recovery.

In June, wholesale inflation increased by 1%, bringing the year-over-year price increase to a new high of 7.3%.

The data on wholesale prices came after a report on Tuesday showing that consumer prices rose 0.9% in June and were up 5.4% year over year, the largest 12-month gain in 13 years.

In testimony to a House committee, Federal Reserve Chair Jerome Powell stated that prices will likely remain elevated but will eventually fall, reiterating the central bank’s position that increasing inflation is a temporary effect of the strengthening economy.

The majority of long-term bond yields were lower.

The 10-year Treasury note yield dropped to 1.34% from 1.41% late Tuesday.

Energy businesses suffered the most losses, owing in part to a 2.8% drop in the price of benchmark U.S. crude oil.

Occidental Petroleum dropped 7.5%, the most in the S&P 500, while Cabot Oil & Gas declined 5%.

In the world of energy trade, the U.S. dollar is the gold standard.

In electronic trading on the New York Mercantile Exchange, crude slipped 78 cents to $72.35 a barrel.

On Wednesday, it fell $2.12 to $73.13 per barrel.

Brent crude fell 67 cents to $74.09 a barrel, the worldwide benchmark.

The United States leads the world in currency trading.

The dollar dropped to 109.80 yen from 109.97 yen.

The euro now costs $1.1843, compared to $1.1838 previously.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Must See

More in News