Global markets update: US stocks decline as investors await Jerome Powell’s testimony
US stocks declined on Tuesday on profit-booking and as investors await Federal Reserve chairman Jerome Powell’s congressional testimony.
The S&P 500 lost 20.88 points, or 0.47%, at 4,388.71. The Dow Jones Industrial Average fell 245.25 points, or 0.72%, at 34,053.87. The Nasdaq Composite dropped 22.28 points, or 0.16%, at 13,667.29.
Bond market
The yield on the 10-year treasury fell to 3.71% from 3.77% late Friday. The 2-year yield slipped to 4.68% from 4.72%.
Currencies
The US dollar fell to 141.37 Japanese yen from 141.96. The euro fell to $1.0917 from $1.0918.
Canada
Canada stocks fell on Tuesday as weaker commodity prices weighed on resource shares.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 180.07 points, or 0.9%, at 19,754.14.
Europe
European shares fell on Tuesday with the pan-European STOXX 600 index declining 0.6%.
Britain’s FTSE 100 lost 0.3% at 7,569.31. Germany’s DAX down 0.6% at 16,111.32. France’s CAC 40 fell 0.3% at 7,294.17.
British auto retailer Lookers jumped 33.9% as Global Auto Holdings said it would buy the peer for about 465.4 million pounds in cash.
German speciality chemicals maker Lanxess plunged 15.4% after cutting its second-quarter and annual core profit forecasts.
Asia
Asian stocks closed mostly lower on Tuesday after China announced its rate cut.
China cut its lending benchmarks on Tuesday, but investors were disappointed as they believe that the action is too small to kickstart the country’s lumbering economic recovery.
The People’s Bank of China reduced its benchmark five-year rate by 10 basis points, less than the 15 points expected, though it did meet forecasts for a 15-point reduction in the one-year rate.
Hong Kong’s Hang Seng index slipped 1.5% at 19,607.08. China’s Shanghai Composite down 0.5% at 3,240.36.
Japan’s Nikkei 225 rose 0.1% at 33,388.91.
Australia’s S&P/ASX 200 index rose 0.9% at 7,357.80. New Zealand’s benchmark S&P/NZX 50 index added 0.3% at 11,789.37.
Energy prices
Brent crude for August delivery fell 19 cents to $75.90 a barrel on Tuesday. US crude oil benchmark for July delivery fell $1.28 to $70.50 a barrel.
Natural gas for July delivery fell 14 cents to $2.49 per 1,000 cubic feet.
Bullion
Gold for August delivery fell $23.50 cents to $1,947.70 an ounce. Silver for July delivery fell 90 cents to $23.23 an ounce.
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Updated: 21 Jun 2023, 02:32 AM IST
