Global stocks: S&P 500, Dow Jones fall over 0.6% on weak US economic data
2 min read . Updated: 05 Apr 2023, 02:44 AM IST
Premium- The reports on job openings and manufacturing orders have increased the recession fears
US shares edged lower on Tuesday after two reports of weak US economic data. US dollar and treasury yields also fell.
All the three major US indices declined more than 0.6%. The S&P 500 shed 0.68% at 4,096.36. The Dow Jones Industrial Average lost 0.71% at 33,362.62. The Nasdaq Composite declined 0.64% at 12,111.43.
The reports on job openings and manufacturing orders released on Tuesday have increased the recession fears. The weak economic data has also emboldened bets for slower interest rate hikes.
A labor department report showed that US job openings in February fell to 9.9 million, the lowest in nearly two years.
A separate report showed that factory orders weakened in February.
The yield on 2-year treasuries fell to 3.838%.
European stocks
European stocks pared early gains to close mixed on Tuesday, as investors weighed the potential impact of rising oil prices on monetary policies.
The pan-European index STOXX 600 dropped 0.08%, with energy stocks paring early gains.
Shell, BP, Tenaris and TotalEnergies lost between 1% and 2.5%.
Britain’s FTSE 100 fell 0.5% at 7,634.52.
France’s CAC 40 ended flat.
Germany’s DAX rose 0.1% at 15,603.47.
The European stocks were up in the early session on signs of easing inflation concerns.
An OECD report said that inflation in leading economies fell to 8.8% in February from 9.2% in January. Whereas in Hungary, Latvia and Turkey, inflation remained above 20%. But overall, inflation fell in 23 of the 38 OECD economies.
Asian shares
Asian shares were mixed on Tuesday, as inflation fears weighed on investors’ sentiments.
Hong Kong’s Hang Seng index fell 0.7% at 20,274.59. In China, Shanghai Composite index added 0.5% at 3,312.56.
Japan’s Nikkei 225 gained 0.4% at 28,287.42.
South Korea’s benchmark Kospi closed up 0.33% at 2,480.51.
Australia's S&P/ASX 200 gained 0.2% at 7,236.00 after the central bank of Australia kept its key interest rate unchanged.
Bullion
Gold advanced on Tuesday to cross the $2,000 mark as the US dollar and yields fell.
Spot gold climbed 1.7% at $2,017.92 per ounce.
US gold futures settled 1.9% higher at $2,038.20.
Silver jumped 3.8% to $24.91 per ounce, platinum rose 3.3% to $1,017.91, while palladium was up 0.3% at $1,456.05.
Oil prices
After Monday's rally, crude oil prices were near flat.
Brent crude surged 1 cent to end at $84.94 a barrel. US crude rose 29 cents at $80.71.