Daily market review

United States

Worries over slowing growth hurt equities Friday with losses accelerating into the close, and as heavily-weighted Apple sold off on an adverse court ruling. The Dow Jones industrial average and the S&P 500 both declined 0.8 percent and the NASDAQ slipped by 0.9 percent.

Investors appeared to take advantage of early gains to exit positions headed into the weekend, and the mood darkened on signs of slowing economic activity resulting from the pandemic, as Federal Reserve officials continue to talk up the prospect of tapering asset purchases. A hotter-than-expected reading on US producer prices Friday played into concerns that the Fed will be obliged to scale back its accommodation headed into year end, even as the economy weakens.

Among stock sectors, growth lagged slightly, with technology and communications services sectors hurt by losses in Apple, down 3.3 percent, and Google, down 2.1 percent after a court ruled against Apple's app store sales practices. Other laggards were utilities, as bond yields rose, and health care, on weakness in hospitals and managed care. On the positive side, consumer discretionary and consumer staples outperformed, along with industrials. Best were energy and materials as commodities prices rebounded from recent weakness.

In US economic data, PPI-FD rose 0.7 percent in August from July and surged 8.3 percent from a year earlier, above expectations. The annual rate marked the largest gain in nearly 11 years.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$1.54 to US$72.83 while spot gold fell US$6.26 to US$1,788.36. The US dollar was mixed vs. major currencies. The US Treasury 30-year bond yield rose 3 basis points at 1.93 percent and the 10-year note yield rose 3 basis points to 1.33 percent.


A mixed showing among sectors left major stock indexes flat to lower Friday as sentiment was hurt by concern about slowing business activity due to the Delta variant. The Europe-wide STOXX 600 and the French CAC both declined 0.3 percent, the German DAX dipped 0.1 percent, and the UK FTSE-100 firmed 0.1 percent.

Among sectors, best performers were basic resources and tech as bargain-hunting in these sectors during the Asian hours continued in Europe. Asian stocks bounced Friday on news of a rare telephone call between the Chinese and US leaders. Other sectors beating the market included personal & household goods, industrials, and autos & parts. Lagging were telecom, utilities, real estate, construction, and banks.

Among companies in focus, LVMH, the French luxury goods conglomerate, edged up 0.8 percent, and Norma, the German manufacturer, rose 2.4 percent after upgrades at HSBC. On the downside, EasyJet fell 3.9 percent after turning down an acquisition offer and announcing a new share issue. Cassiopea, the Italian pharma, fell 12 percent after disappointing clinical trial news.

Asia Pacific

Asian equities markets rose on news that US President Biden and his Chinese counterpart Xi had spoken in an apparent bid to improve relations.

A rebound in Hong Kong tech stocks that were hit hard Thursday helped Hong Kong's Hang Seng outperform with a gain of 1.9 percent. Meanwhile, China's CSI 300 rose 0.9 percent and the Shanghai composite firmed 0.3 percent. Growth stocks outperformed, with financials and tech leading, and energy and utilities lagging. Energy stocks were hurt by weaker oil prices after Chinese authorities said they planned to release some crude oil reserves.

The Biden-Xi telephone call and a recovery in tech stocks helped the South Korean KOSPI gain 0.4 percent while Taiwan's benchmark Taiex rose 1.0 percent.

Better sentiment propelled Japanese markets again Friday on hopes for an improved coronavirus situation and a recovery in business conditions with a new government ahead. The Nikkei and the broader Topix both rose 1.3 percent with the Nikkei breaking above 30,000, a key psychological barrier. Most sectors rose, led by financials and transportation equipment. Shinsei Bank ended limit-up 21 percent after an unsolicited bid from SBI.

Light bargain-hunting in beaten-down mining and energy stocks helped Australian equities rise with the All Ordinaries up 0.6 percent. Travel and building materials stocks outperformed while health care lagged on weakness in biotechs.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

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