A power crunch in China added to a more downbeat tone in the markets
Wall Street stocks finished mixed overnight, with losses in tech shares pushing the Nasdaq lower on the day. The index shed 0.52% while the S&P 500 slipped 0.28%. Meanwhile, the Dow Jones gained 0.21%. The 10-year Treasury yield briefly exceeded 1.5%, to the highest since June. On the data front, US Durable Goods Orders increased by 1.8% in August from -0.1% previous.
Asian markets were mostly lower on Tuesday amid the persistent concerns over the fate of the indebted Evergrande Group while a power crunch in China added to a more downbeat tone among investors. also, the data showed profit growth at China’s industrial firms slowed for a sixth month in August. As such, Japan’s benchmark Nikkei 225 shed 0.19%, Australia’s S&P/ASX 200 dipped 1.47%, and South Korea’s Kospi lost 1.14%. Meanwhile, Hong Kong’s Hang Seng and the Shanghai Composite index in China finished higher by 1.46% and 0.54%, respectively.
In Europe, however, equities opened lower to slip to one-week lows today, with the pan-European STOXX 600 index being down 1.3% in early trade despite a survey that showed the mood among German consumers improved heading into October. On Monday, European Central Bank chief Christine Lagarde said inflation in the Eurozone could exceed its already raised projections.
In currencies, the dollar remains on the offensive nearly across the board on Tuesday, sending the EURUSD pair to fresh August 20 lows around 1.1670. Now, the common currency threatens the 1.1660 area, a break below which would pave the way towards the 1.1600 figure last seen nearly one year ago. On the upside, the immediate resistance is now represented by the 1.1700 figure.