Daily market review

United States

Equities recovered in the afternoon from morning losses as bulls focused on a better-than- expected quarter from Amazon and results from other growth stocks that were not as bad as investors feared. A late round of selling knocked equities back from afternoon highs as rising bond yields came back into focus. The Dow Jones industrial average slipped 0.1 percent, the S&P 500 rose 0.5 percent and the NASDAQ gained 1.6 percent.

Much stronger than expected US employment figures pushed equities into the red in the morning as they played on fears that the Federal Reserve will start off its tightening program with a stiff 50-basis point rate hike in March. But dip-buying in the beaten-down technology sector led the market higher, along with a boost for energy stocks from rising oil prices. Banks outperformed, too, as interest rates continued higher. Rising yields remained a huge concern with short-end Treasury coupon yields up 10-11 basis points, and appeared to inspire selling into the close.

Bulls seized on stronger-than-expected results from Amazon, which rallied 13.5 percent to boost consumer discretionary. Snap soared 59 percent after the social media leader recorded its first actual profit. The results contrasted with the nasty selloff suffered by Meta after its recent earnings misses.

Most other sectors weakened, with materials, communications services, industrials, and real estate lagging. Weakness in chemicals and paper depressed materials. Consumer staples were soft, along with household and personal care stocks, with Clorox dropping 14 percent on weaker guidance linked to cost pressures.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil jumped by US$2.05 to US$93.08 while spot gold rose US$1.82 to US$1,807.97. The US dollar was mixed vs. major currencies. Yields on the US Treasury 30-year bond jumped by 7 basis points to 2.22 percent, and the 10-year note gained 9 basis points at 1.92 percent.


Earnings news and concern about hawkish central banks undercut equities, with markets tracking the morning selloff on Wall Street after a strong US jobs report added to rate hike worries. The Europe-wide STOXX 600 lost 1.4 percent, the German DAX fell 1.8 percent, the French CAC slipped 0.8 percent, and the UK FTSE 100 declined 0.2 percent.

Among sectors, autos lagged to hit German and French markets hardest, with Daimler down 2.4 percent, VW off 2.6 percent, and Renault down 4.0 percent. On the positive side, oil & gas stocks outperformed as oil prices extended their gains. TotalEnergies gained 2.5 percent and ENI up 1.4 percent.

Among companies in focus, TomTom, the consumer electronics company, lost 16 percent after posting a big earnings miss and warning on supply trouble. Sanofi, the pharma, fell 1.1 percent after disappointing earnings. On the positive side, Assa Abloy, the lockmaker, gained 7.0 percent after an earnings beat and raising its dividend. Carlsberg, the brewer, rose 0.5 percent after raising its guidance and dividend.

Asia Pacific

Asia/Pacific markets advanced with a boost from dip-buying in technology and other growth stocks after US equity futures recovered on strong results from Amazon after Thursday's Wall Street close. Activity was limited as mainland Chinese markets remained on holiday.

Hong Kong's Hang Seng index rallied 3.2 percent on its return from the Lunar New Year holidays. Tech stocks advanced, including Alibaba, up 5.6 percent, and Meituan, up 3.3 percent. Banks advanced with a boost from rising bond yields after hawkish news from the Bank of England and European Central Bank on Thursday. HSBC gained 5.0 percent and Standard Chartered rose 4.8 percent.

Japanese markets recovered from early weakness as US equity futures turned higher. The Nikkei 225 gained 0.7 percent and the Topix rose 0.6 percent. Nintendo rose 3.6 percent after raising its earnings guidance. Japan Airport Terminal gained 7.4 percent on reports Japan may ease travel restrictions. Auto stocks suffered from supply chain worries, with Nissan down 3.0 percent.

The South Korean KOSPI gained 1.6 percent as technology shares bounced back. Naver, the internet conglomerate, rose 2.2 percent and Daewoo Shipbuilding rose 4.5 percent on news of huge orders.

Indian equities ended mixed to slightly lower headed into the weekend with the BSE SENSEX off 0.2 percent. Financials, tech, and oil & gas lagged while metals fared best.

Australian equities improved with the All Ordinaries index and the ASX 200 both up 0.6 percent to end up about 2 percent on the week. Most sectors rose Friday with industrials, tech, and energy stocks best.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

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