Asia, Europe, and, US Markets Closing Report | August 9, 2022:

ASIA 

Source: cnbc.com

Japan's Nikkei leads losses in mixed Asia markets; SoftBank shares drop 7% after earnings losses

Abigail Ng

SINGAPORE — Shares in the Asia-Pacific were mixed Tuesday on a quiet data day as markets continue to digest last week's stellar U.S. jobs report.

SoftBank Group's stock fell around 7% after its Vision Fund reported a 2.93 trillion Japanese yen ($21.68 billion) loss for the June quarter on Monday after the market close. The tech-focused fund has suffered as central banks raise interest rates to fight inflation.

The Nikkei 225 in Japan fell 0.88% to close at 27,999.96 and the Topix index was down 0.74% to 1,937.02.

South Korea's Kospi closed about 0.42% higher at 2,503.46, while the Kosdaq gained 0.34% to 833.65.

In Australia, the S&P/ASX 200 rose 0.13% to 7,029.8.

Markets instead have been mulling over Friday's strong payrolls report with a few more US banks calling a 75bp hike in September.

Tapas Strickland

Economist, National Australia Bank

Hong Kong's Hang Seng index gave up earlier gains to trade 0.3% lower in the final hour of the session, while heavyweight Alibaba climbed about 0.7%.

Alibaba has applied to change its Hong Kong listing status to primary from secondary, the company said in a statement on the Hong Kong Exchange. The Hong Kong Stock Exchange acknowledged the application on Aug. 8. The change will likely take effect before the end of 2022.

The tech giant first announced its plans for a dual primary listing in Hong Kong last month.

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Mainland China markets advanced. The Shanghai Composite gained 0.32% to 3,247.43 and the Shenzhen Component added 0.235% to 12,331.09.

Intelligent transport firm Zhengzhou Tiamaes Technology stock soared nearly 20% after China's ministry of transport released draft rules for self-driving vehicles that could lead to a legalization of such vehicles on public roads.

ShenZhen RoadRover Technology's shares jumped 10%, hitting its trading limit, according to Chinese media.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed.

China's continued military drills around Taiwan have not impacted markets much, according to Tapas Strickland, an economist at National Australia Bank.

"Markets instead have been mulling over Friday's strong payrolls report with a few more US banks calling a 75bp hike in September," he said in a note on Tuesday.

In economic data, investors are looking ahead to the U.S. consumer price index data due Wednesday stateside.

Singapore and India markets are closed for a holiday on Tuesday.

Overnight in the U.S., the S&P 500 dipped 0.12% to 4,140.06 and the Nasdaq Composite shed 0.1% to 12,644.46. The Dow Jones Industrial Average rose slightly to close at 32,832.54.

Currencies and oil

The U.S. dollar index, which measures the currency against a basket of six foreign currencies, was at 106.320, slightly lower after its recent jump to nearly 107.

"Continued hawkish messages from the Fed and a strong CPI result can support the USD," Kristina Clifton, an economist at Commonwealth Bank of Australia, wrote in a Tuesday morning note.

The Japanese yen traded at 134.92 per dollar following a sharp weakening after last week's strong U.S. jobs report.

The Australian dollar was at $0.6969. It briefly climbed above $0.70 overnight.

Oil futures settled nearly 2% higher on Monday's session. U.S. West Texas Intermediate futures were 0.79% lower on Tuesday in Asia, at $90.09 per barrel, while Brent crude shed 0.68% to $95.99 per barrel.

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EUROPE

 

Source: cnbc.com

European markets close lower as focus turns to U.S. inflation, Fed outlook

Elliot Smith

LONDON — European markets closed lower on Tuesday as focus in global markets turns to a key U.S. inflation print due Wednesday.

The pan-European Stoxx 600 provisionally ended down by 0.6%, with technology stocks shedding 3.2% to lead losses while oil and gas stocks bucked the downward trend to add 1.2%.

Investors are trying to assess the potential pace of the U.S. Federal Reserve's monetary policy tightening efforts. A surprisingly strong U.S. jobs report last week seemed to reduce the likelihood of a recession, allowing the central bank the capacity for more aggressive rate hikes as it looks to rein in inflation.

Wednesday's July consumer price index is expected to offer some clarity on the path of interest rate hikes.

Shares in Asia-Pacific were mixed on Tuesday as markets continued to digest last week's stellar payrolls report and assess the trajectory of monetary policy, with Japan's Nikkei 225 the weakest performer in the region.

"Inflation, geopolitical tensions, monetary policies; a lot of this year's uncertainty may have already been priced in, but bullish market drivers are still hard to find and there is a high chance there are not enough of them to justify an extended short- to mid-term extended rally or a trend reversal."

Pierre Veyret

Technical Analyst, ActivTrades

U.S. stocks reversed course to trade slightly lower on Tuesday as Wall Street reacted to some significant earnings reports, in particular weaker-than-expected revenue from Nvidia and a fourth-quarter revenue warning from memory chipmaker Micron.

"Inflation, geopolitical tensions, monetary policies; a lot of this year's uncertainty may have already been priced in, but bullish market drivers are still hard to find and there is a high chance there are not enough of them to justify an extended short- to mid-term extended rally or a trend reversal," said Pierre Veyret, technical analyst ActivTrades.

"Even if the reassuring earnings season managed to support market sentiment in July, some investors think this optimism will be short-lived. Equity markets may not have fully priced in monetary uncertainty from central banks, due to the lack of visibility of its long-term impact on growth."

Earnings also remain a key driver of individual share price movement in Europe, with Abrdn, IHG, L&G, Continental and Munich Re among those reporting before the bell on Tuesday.

Workspace company IWG plunged more than 11% to the bottom of the index, after their respective first-half earnings reports.

Toward the top of the benchmark, Ferrovial climbed almost 4% on a report that the Spanish transport infrastructure firm is considering options for its 25% stake in Britain's Heathrow Airport.

Heathrow has been at the center of chaos in international travel as airlines scramble to find enough staff to meet the surge of demand this summer.

On the data front, U.K. retail sales rose 1.6% in July, buoyed by a heatwave and sales of hot-weather clothing, picnic items and electric fans, according to a report from the British Retail Consortium.

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— CNBC's Ryan Browne contributed to this report

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US

Source: cnbc.com

Stock futures tick up as investors brace for July inflation report

Carmen Reinicke

A trader works at the New York Stock Exchange NYSE in New York, June 13, 2022.

Michael Nagle | Xinhua News Agency | Getty Images

Stock futures rose Tuesday as investors looked ahead to a key inflation report set to be released Wednesday.

Dow Jones Industrial Average futures rose by 20 points, or 0.06%. S&P 500 and Nasdaq 100 futures climbed 0.05% and 0.09%, respectively.

The moves come after the S&P 500 and Nasdaq fell for a third straight day on Tuesday. The Nasdaq Composite led the declines, falling 1.19% after Micron, Novavax and Upstart warned that future earnings and revenue may come in lower than previously thought. The S&P 500 fell 0.42%, and the Dow Jones Industrial Average shed 0.18%.

Inflation report looms

Investors are awaiting the latest consumer price index report, which could confirm or dash hopes that rising prices have leveled off. Economists expect the report to show that inflation has cooled slightly, led by slipping oil prices.

"In terms of reactions, the market will initially get more excited by a downside core CPI surprise than an upside surprise, especially as it relates to risk appetite," Alan Ruskin of Deutsche Bank wrote in a Tuesday note. "A downside surprise plays to 'hopes' that an oil/food commodities peak, plus slower demand, will filter quickly into US inflation data."

The Federal Reserve will weigh the report, along with other key economic data, ahead of its September meeting where it is slated to hike interest rates again.

Earnings season also continues, with Disney's quarterly results due after the bell Wednesday.

Coinbase, Roblox slump in after hours trading

Shares of Coinbase and Roblox are making some of the biggest moves in after hours trading Tuesday after reporting earnings that failed to meet Wall Street's expectations.

Coinbase slipped more than 5% after reporting earnings showing a larger-than-expected loss during the quarter, and the company missed revenue estimates.

Roblox plunged more than 16% after missing on earnings and revenue. In addition, the company also reported only 52.2 million average daily active users, down from the 54.1 million it reported in the previous quarter.

- Carmen Reinicke

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