Australian Market

Australia’s S&P/ASX 200 added 0.3%, after the index recorded broad-based gains, led by the industrial sector. Energy and technology were the only sectors to finish in the red. BHP, the world’s largest miner by market value, fell 1.0% after reporting its output of energy and steelmaking coal was weaker.

US Market 

U.S. stock indexes fell as investors weighed a batch of solid corporate earnings reports against concerns that continued interest-rate increases will cause a recession. The S&P 500 declined 0.7% after spending the morning bouncing between gains and losses. It has been a volatile stretch for the broad-market index. The Nasdaq Composite Index lost just under 0.9%, and the Dow Jones Industrial Average slipped 0.3%.  

I think the broader issue in this earnings season is really not just how companies are doing, but the macro issues with interest rates and Fed policy,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office.

Commodities

Gold and silver prices settled lower as the U.S. dollar strengthened and Treasury yields advanced further beyond the 4% mark. Gold futures for December delivery fell 1.3% to settle at $1,634.20 per ounce on Comex.

“Truth be told, it was always going to be an uphill struggle for the metal,” said Fawad Razaqzada, market analyst at City Index and Forex.com. “Fears over further tightening of central bank policy amid an environment of high-inflation and low-growth meant investors were never going buy gold aggressively.”

Oil Futures

Oil futures posted their first gain in four sessions, as U.S. government data showed declines in domestic crude and gasoline supplies. Traders also debated the impact of the Biden administration’s plans to release more crude from the Strategic Petroleum Reserve and refill it when oil prices are much lower. 

West Texas Intermediate crude for November delivery rose 3.3% to settle at $85.55 a barrel on the New York Mercantile Exchange, ahead of the contract’s expiration at the end of Thursday’s session. December WTI, the most actively traded contract, rose 3% to $84.52 a barrel. December Brent crude advanced 2.6% to $92.41 a barrel on ICE Futures Europe.

Forex

Major currencies were weaker against the US dollar in European and US trade. The Euro fell from highs near US$0.9842 to lows near US$0.9756 and was near US$0.9770 at the US close. The Aussie dollar eased from highs near US63.16 cents to lows near US62.52 cents and was near US62.70 cents at the US close. And the Japanese yen eased from 149.24 yen per US dollar to JPY149.89 and was near JPY149.85 at the US close.

European Markets

European sharemarkets snapped a four-day rally on Wednesday as investors fretted about runaway inflation. The continent-wide FTSEurofirst 300 index lost 0.4%. Eurozone consumer inflation was revised lower to 9.9% from 10% over the year to September, but was still at a record high (survey: 10%). The UK FTSE 100 index dipped 0.2% after the UK consumer price index (CPI) jumped by 10.1% in annual terms in September, matching a 40-year high hit in July (survey: 10.0%).

Asian Markets

Earlier Wednesday, Chinese shares were dragged lower by liquor makers. The baijiu sector has been weighed by subdued holiday sales and recent rumors about a ban on alcohol consumption for civil servants, Donghai Securities said. The Shanghai Composite Index fell 1.2%, the Shenzhen Composite Index lost 1.2% and the ChiNext Price Index was 0.9% lower.

Hong Kong’s Hang Seng Index gave up 2.4%, reversing the week’s gains, as tech shares dragged on the market. The Hang Seng Tech index gave up 4.2%. Japanese stocks, however, were led higher by utility and tech stocks, as concerns eased about the costs of fuel and borrowing. The Nikkei Stock Average climbed 0.4%.