Daily market review

United States

Major US equities indexes were mixed with value and commodity stocks outperforming growth as interest rates ticked up again. The Dow Jones industrial average rose 0.4 percent, the S&P 500 declined 0.3 percent and the NASDAQ lost 1.3 percent.

Best sectors were energy and materials, reflecting rising commodities prices. Oil prices advanced again, with Brent crude back above US$100. Other winning stock sectors included health care, regarded as a counter-cyclical play, plus financials, with a boost from another leg higher in interest rates.

Growth stocks faced the headwind of rising interest rates, with information technology, consumer discretionary, communications services lagging, along with industrials. The FANMAG complex and megacaps were mostly weaker, with Amazon, down 2.1 percent, and Tesla, down 3.0 percent to weigh on consumer discretionary, and to depress the major averages.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 73 cents to US$101.90 while spot gold rose US$17.33 to US$1,943.34. The US dollar was mixed vs. major currencies. The US Treasury 30-year bond yield rose 10 basis points to 2.73 percent and the 10-year note yield rose 10 basis points to 2.71 percent.


A better showing at the Wall Street open lifted European equities with gains nearly across the board. The Europe-wide STOXX 600 rose 1.3 percent, the German DAX advanced 1.5 percent, the French CAC gained 1.3 percent and the UK FTSE 100 was up 1.6 percent.

Among sectors, best were oil & gas and basic resources. Banks outperformed as interest rates rose headed into next week's European Central Bank policy meeting. Lagging were travel & leisure, technology, and media.

Among companies in focus, BNP Paribas gained 2.8 percent after an analyst upgrade. BHP, the miner, rose 1.9 percent to boost basic resources as the markets reacted favorably to its plans to merge oil and gas operations with Woodside, the driller.

Asia Pacific

Asia-Pacific equities ended slightly better on dip-buying after a negative week but sentiment remained widely bearish with rising interest rates and Covid concerns in focus as Shanghai remained in a lockdown.

Mainland China stocks improved with growth stocks lagging again. Among sectors, property advanced to boost the overall market while technology shares remained under pressure on news of another regulatory crackdown. China's CSI 300 and the Shanghai index both rose 0.5 percent. Hong Kong's Hang Seng gained 0.3 percent.

Japanese equities improved on sentiment that recent selling has run its course. Japan's Nikkei 225 firmed 0.4 percent and the TOPIX rose 0.2 percent. Among sectors, best were information & communications, oil & coal, and precision instruments.

The South Korean KOSPI rose 0.2 percent and the Taiwan Taiex gained 0.6 percent. The Indian BSE Sensex rose 0.7 percent. The Reserve Bank of India left interest rates on hold but appeared to signal it will start raising rates in August, analysts said.

Australian equities improved with support from commodity stocks while technology remained under pressure. The All Ordinaries index rose 0.5 percent.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

Looking forward