ICYMI: Hong Kong (Reuters): On Tuesday afternoon, Asian stocks gave up most of their morning gains as investors remained wary ahead of a meeting of the European Central Bank this week and the potential consequences of a gas curtailment in Russia.
After a holiday on Monday for Labor Day, U.S. equities are expected to open higher on Tuesday, with E-mini futures for the S&P 500 index showing an increase of 0.31%.
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Futures on the FTSE Index were down 0.2%, suggesting a turbulent opening bell for London stocks. As a result of Russia’s announcement that its main gas pipeline to Europe will stay shut, European markets fell on Monday, the euro fell below 99 cents for the first time in twenty years, and European gas prices shot up.
At 5:32 AM GMT, the MSCI index of stocks in the rest of Asia and the Pacific excluding Japan was up 0.02%. A rise of 0.03% was seen on Japan’s Nikkei 225.
Chinese leaders promised Monday to redouble their efforts to revive the country’s economy, which had been hit hard by the COVID outbreak, sending the benchmark CSI300 Index up 0.58 percent. But the Hang Seng Index, Hong Kong’s primary stock market index, fell 0.07 percent.
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The yuan’s value against the U.S. dollar rose after the central bank said it would lower the ratio of foreign exchange reserves. Before that, the yuan had been at its lowest point in more than two years.
Ord Minnett financial adviser John Milroy predicts that the effectiveness of China’s stimulus programme will be reflected in the performance of the industry’s leading miners.
After the Reserve Bank of Australia (RBA) raised the cash rate by 50 basis points as expected, the S&P/ASX 200 in Australia declined by 0.36%.
This Thursday, the European Central Bank will hold a meeting to deliberate on future interest rate policy. The Federal Reserve of the United States will hold a meeting on September 21.
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“Soaring inflation will likely see the ECB issue another outsized rate hike this Thursday,” stated analysts from the Commonwealth Bank of Australia (OTC: (OTC:CMWAY).
European energy ministers are likely to debate ways to control electricity prices when they conduct an emergency meeting on Friday.
Sean Darby, who is the global head of equities strategy for Jefferies and is based in Hong Kong, says that after the next 75 basis point increase in September, growth is likely to slow.
Oil prices went down on Tuesday, erasing the 3% increase from the day before. This happened because investors thought that OPEC+’s agreement to cut production by 100,000 barrels per day in October was mostly symbolic and wouldn’t be enough to stop the market’s recent drop.
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Morning losses widened as Brent crude futures dropped 0.7% to $95.07 a barrel. Despite this, U.S. oil futures were up 2.12% at $88.71 a barrel.
Gold jumped $0.49 an ounce to $1,718.2 on the Spot market.
After reaching a 20-year high the previous session, the dollar index slipped by 0.06%.
