Global Stock Prices are Falling

Highlights:

• USA
  The Dow Jones slipped by 0.19% or 66.57 points, to 34,894.12. Meanwhile, the S&P 500 rallied and added 0.13% or 5.53 points, to 4,405.80. The Nasdaq advanced by a slight 0.11% or 15.87 points, to 14,541.79.
• ASIA
  The Nikkei lost 1% or 267 points to close at  27,013.
  The Kospi closed with a loss of 1.20% or 37.32 points to 3,060.51.
  The Hang Seng lost 1.84% or 466.61 points to 24,849.72.
• EUROPE
• The STOXX 600 opened flat.

Wall Street Closed Mixed on Thursday

Wall Street closed this Thursday in the mixed ground. The Dow Jones slipped by 0.19% or 66.57 points, to 34,894.12. Meanwhile, the S&P 500 rallied and added 0.13% or 5.53 points, to 4,405.80. The Nasdaq advanced by a slight 0.11% or 15.87 points, to 14,541.79.

On Wednesday, the Fed published the minutes of its July meeting in which the withdrawal of stimulus before the end of the year was addressed. It weighed on the stock market. In addition, concern continues about the expansion of the delta variant of Covid-19 and its potential impact on the economic recovery.

Goldman Sachs cut its growth forecasts for the US economy for the third quarter from 9% to 5.5% last night.

The information technology sector dropped by 0.99%. The health sector added 0.49% and the real estate increased by 0.93%. 

Cyclical sectors such as energy slipped by 2.65% amid persistent unease caused by the Delta variant and expectations that the Fed will start tapering. 

Ford and General Motors dropped by more than 3%. Electric vehicle maker Tesla lost 2.25% to $673.47.

Boeing was the biggest loser among the 30 companies listed on the Dow, dropping by 3.12%. Caterpillar declined by 2.55% and Chevron lost 2.49%.

Cisco gained the most adding 3.84%. It was followed by UnitedHealth with an increase of 2.53% and Microsoft adding 2.08%.

Outside of the group, Robinhood, a stock exchange platform, plunged by more than 10%. The company published its quarterly results since it went public, anticipating a decline in its business in the future.

The Nikkei Slid to the Year’s Lowest Level

The Nikkei fell below the year-low for the first time in around 7 months. It lost 1% or 267 points to close at  27,013. 

The Topix slid by 0.87% or 16.51 points, to stand at 1,880.68. 

Toyota Motor, the Japanese car manufacturer, announced that it will cut its global production in September by 40% due to the shortage of components and the impact of Covid-19 in its production in Southeast Asia. The company’s shares slid by 4.08%.

On Thursday, Japan reported a record 25,000 new Covid-19 infections. The number of patients in serious condition registered another record for the seventh consecutive day, raising concerns about the pace of recovery.

The situation led the government to extend the current state of emergency until September 12 this week.

The maritime transport sector posted the biggest losses in the session, along with transport equipment and non-ferrous metals.

The transportation company Nippon Yusen fell by 8.41% and the Softbank group shed  3.6%.

Video game developer and distributor Nintendo grew by 1.58% and technology company Sony added 0.14%.

The trading volume of the session was 2.83 trillion yen.

The Kospi Slipped by 1.20%

The Kospi closed with a loss of 1.20% or 37.32 points to 3,060.51. This is the lowest level since March 29.

The index started 0.43% higher at 3,111.10. Foreigners net sold 258.1 billion won in the stock market, showing a selling advantage for the ninth consecutive day. It was the first time in three months since May 11-24 that foreigners net sold for nine consecutive days.

Institutions also net sold 14.6 billion won, while individuals net bought 271.4 billion won.

On this day, the domestic stock market appeared to be affected by concerns from China. The Chinese stock market is falling as industrial regulatory issues such as the People’s Bank of China freezing the loan prime rate and passing the Personal Information Protection Act.

Domestic automakers such as Hyundai Motor plunged by 2.42%. Kia lost 1.24% on the news that Toyota Motor in Japan was reducing production due to a shortage of semiconductor parts.

According to Lee Kyung-min, a researcher at Daishin Securities, the won/dollar exchange rate touched 1,180 won and acted as a burden. In the aftermath of that, the sale was withdrawn.

Samsung Electronics fell for eight consecutive trading days. Kakao slipped by 1.17%, Celltrion shed 1.85%, POSCO declined by 1.75%. Also, Kakao Bank yielded 1.09%, and SK Bioscience dropped by 1.49%.

By industry, all industries fell. Precision Medicine slipped by 4.07%, the paper and wood sector lost 3.46%, and non-metallic minerals shed 3.24%.

The Hang Seng Fell into a Bear Market

The Hang Seng closed today with losses of 1.84% or 466.61 points to 24,849.72 due to the continued loss of investor confidence in technological securities. It resulted from the regulatory campaign initiated by the Chinese Government in the sector. 

The Hang Seng China Enterprises slipped by 1.95%.

Among the sub-indices, the Services lost 0.5%. Meanwhile, Real Estate shed 0.62%, Finance declined by 1.18%, and Commerce and Industry yielded 2.68%.

Digital leaders like Meituan plunged by 4.54%, and Alibaba lost 2.59%. In contrast, Tencent bounced by 1%.

Alibaba’s healthcare subsidiary, Ali Health, had the worst day. It dived by 13.3%.

Other sectors also ended the day in the red. Among pharmaceuticals, Wuxi Biologics slid by 7.47%. CSPC Pharmaceutical lost 6.97%. Casino operator in Macau Sands China dropped 5.89%.

In the financial sector, insurer AIA shed the most losing 2.1%. Meanwhile, CG Services was the biggest loser in the real estate sector. The company suffered a decline of 4.34%.

Chinese state securities did not perform well today. Oil companies posted losses, and Petrochina slid by 2.93%. Meanwhile, telephone operator China Mobile dropped by 1.65%.

The business volume of the session was 204,330 million Hong Kong dollars.

European Shares Open Flat Due to Worries about Tapering

The pan-European STOXX 600 opened flat after Thursday’s 1.5% slump. Investors are worried about the US Federal Reserve’s possible start of tapering asset purchases later this year. 

Germany’s DAX slipped by 0.12% as data showed producer prices jumped more than expected last month.

The UK’s FTSE 100 added 0.24% despite an unexpected fall in July retail sales. People spent less on groceries and more on going out.

UK food and clothing retailer Marks & Spencer surged to the top of the Stoxx with a 9% rise.

Supermarket Morrisons jumped by 4.5% after agreeing on a takeover offer worth £7bn.

The automotive sector shows the sharpest decline in Europe sliding by 1.19%.

Volkswagen is trading with a decline of 1.91% after already losing 1.86% on Thursday.