Daily market review

United States

Equity markets were mostly better Tuesday with value/cyclical names outperforming after lagging growth lately, while tech retreated. The Dow Jones industrial average rose 0.5 percent, the S&P 500 firmed 0.1 percent, and the NASDAQ declined 0.5 percent.

Value/cyclicals appeared to get a boost from Senate passage of a $1 trillion US infrastructure bill.

Transport stocks gained with Kansas City Southern, the railway, up 7.5 percent after Canadian Pacific, down 0.7 percent, raised its takeover offer.

Among value sectors, commodity stocks recovered, with energy leading as oil bounced back from Monday's declines. Materials perked up with industrial metals leading. Airlines rose to help industrials rebound. Banks helped financials outperform with market interest rates up again. Strength in food and grocery stores propelled consumer staples, with Sysco up 6.5 percent. Homebuilders and restaurants gave consumer discretionary a lift.

On the downside, internet stocks dragged down communications services. Other laggards were health care and real estate. Tech trailed, with chipmakers off, paced by Micron, down 5.4 percent.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$1.52 to US$70.77 while spot gold fell US$5.96 to US$1,724.42. The US dollar rose vs. most major currencies. The US Treasury 30-year bond yield rose 2 basis points to 1.99 percent and the 10-year note yield rose 2 basis points at 1.34 percent.


Equities edged up again Tuesday with support from favorable company results. The Europe-wide STOXX 600 firmed 0.4 percent, the German DAX firmed 0.2 percent and the French CAC edged up 0.1 percent, and the UK FTSE 100 was up 0.4 percent.

Travel & entertainment stocks topped the day's winners, led by Flutter, up 8.2 percent after the online gambling leader posted an earnings beat and raised its guidance. Tech stocks outperformed with help from Mycronic, up 2.2 percent, after the Swedish electronics firm announced a large SLX laser writer order.

Link Mobility, a Norwegian cloud stock, rose 7.1 percent after an analyst upgrade. HelloFresh, the German meals company, rose 9.4 percent after reporting huge growth figures.

On the downside, autos & parts lagged, with Porsche flat after disappointing guidance. Basic resources stocks lagged as the market priced in slower Chinese growth.

Asia Pacific

Asian markets mostly gained Tuesday with Chinese markets better on bargain-hunting, and favorable company news helping Japan firm on its return from a three-day weekend.

Dip-buying in growth sectors, especially beat-up chipmakers, lifted Chinese markets with the CSI 300 up 1.2 percent and the Shanghai composite up 1.0 percent. Concerns persisted over slowing Chinese growth and rising Covid-19 case counts. Among sectors, consumer staples outperformed while information technology and materials lagged.

Hong Kong recovered as investors bought the dip in tech stocks, with the Hang Seng up 1.2 percent. Among the day's best performers were tech giants Tencent, up 5.3 percent, and Meituan, up 8.4 percent.

Lagging the region were South Korea's KOSPI, down 0.5 percent, and Taiwan's benchmark Taiex , off 0.9 percent as concerns accelerated around the spread of the Delta variant and talk of early Fed tightening.

Company earnings news helped Japan's Nikkei edge up by 0.2 percent and the broader Topix firmed 0.4 percent. Focus on the impact of restrictions to curb the Delta variant limited the gains. Among companies reporting, Mitsui Mining rose 8.8 percent and Otsuka, the pharma, rose 5.4 percent after topping earnings expectations.

Australian markets were mixed to better with the All Ordinaries index up 0.3 percent. Big banks advanced, led by Commonwealth Bank, up 1.5 percent, while weakness in precious metals weighed on the market, with Ramelius Resources, the miner, down 5.9 percent. Sentiment was hurt by new data showing lockdowns hitting consumer and business sentiment. The ANZ-Roy Morgan consumer confidence dropped by 3.2 points to 98.6 after new lockdowns were imposed in Southeast Queensland and Victoria.

Looking ahead*

In Asia/Pacific, the Chinese new yuan loans report is due. In Europe, German CPI and Italian CPI releases are scheduled. In North America, US CPI is on tap.

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