1 year ago
241
The Tokyo Tower, left, and commercial and residential buildings at night in Minato district of Tokyo, Japan, on Saturday, Oct. 1, 2022. Photographer: Akio Kon/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
Asia-Pacific markets are set to rise, mirroring moves on Wall Street as U.S. Treasury yields fell and oil prices slightly eased.
The benchmark 10-year U.S. Treasury yield fell nearly 13 basis points to about 4.65%, as investors sought safe assets amid the Hamas-Israel conflict. Yields and prices move in opposite directions.
The move reflected the first reaction to the conflict in the U.S. bond market, which was closed Monday for Columbus Day.
In Australia, the S&P/ASX 200 climbed 0.47% in early trade, extending four straight days of gains.
Japan's Nikkei 225 is also set to rise as investors assess the Reuters Tankan survey, which saw business morale at large Japanese firms stay largely unchanged, with the futures contract in Chicago at 31,875 and its counterpart in Osaka at 31,780 against the index's last close of 31,746.53.
Futures for Hong Kong's Hang Seng index stood at 17,981, pointing to a stronger open compared with the HSI's close of 17,664.73 and on pace for a fifth straight session of gains.
Overnight in the U.S., all three major indexes climbed as investors awaited key inflation data out of the world's largest economy, with the producer price index and consumer price index readings for September out Wednesday and Thursday,. respectively.
The Dow Jones Industrial Average gained 0.40%, while the S&P 500 rose 0.52%. The tech-heavy Nasdaq Composite added 0.58%.
— CNBC's Pia Singh and Hakyung Kim contributed to this report.
Israel-Hamas conflict isn't likely to have a huge market impact, says Goldman Sachs top strategist
Goldman Sachs' chief U.S. equity strategist David Kostin does not expect the Israel-Hamas conflict will have a huge impact on markets.
"It's a tragedy from a human point of view," Kostin told CNBC's "Squawk on the Street" on Tuesday. "But the idea fundamentally, we'll be getting earnings for the last three months, which is obviously backward looking. And the prospects looking forward are probably more domestically facing issues that are sort of pertinent to a lot of portfolio managers."
"So less likely to have a big impact on a sustainable basis," Kostin said.
Still, the strategist expects other risk factors will continue to weigh on stocks, citing higher yields and oil prices that could impede multiple expansion. He expects the S&P 500 will end 2023 around the 4,300 level, which is a little lower than where the broader index was last trading at about 4,380. He added cash is attractive.
However, he does not anticipate a recession on the horizon.
— Sarah Min
Airline and cruise stocks rebound after Monday's selloff
Some travel-related stocks bounced back on Tuesday after selling off during the previous session amid a spike in oil prices and as the conflict unfolded between Israel and designated terrorist group Hamas.
Shares of United Airlines, Delta Air Lines and American Airlines gained at least 3%. The stocks sold off by more than 4% each during Monday's session amid a slew of flight cancelations coming in an out of the country. JetBlue Airways popped 3.6%, while Southwest Airlines added more than 2%.
Cruise stocks Carnival and Royal Caribbean rose 3.1% and 2.7%, respectively. Hotel stocks Marriott and Hilton gained about 3% each.
— Samantha Subin
Inflation expectations increased in September, New York Fed survey shows
The consumer outlook for where inflation is headed worsened slightly in September, according to a New York Federal Reserve survey released Tuesday.
Expectations for inflation a year from now increased to 3.7%, up 0.1 percentage point from August, the survey showed. On a three-year basis, the outlook rose to 3%, up 0.2 percentage point. That came even though the outlook for gas, medical care and rent all declined.
Also in the survey, the expectation for the cost of education increase decelerated, down to 5.8% from 8.2%, the biggest one-month decline in the survey's history.
—Jeff Cox
Nasdaq 100 cross above 50-day moving average
The Nasdaq 100 crossed above the 50-day moving average level of 15,082.36 Tuesday morning, marking the first time it traded above the level on an intraday basis since Sep. 15. It has not closed above the 50-day moving average since Sep. 14.
Shares of Tesla, Amazon, PepsiCo and Nvidia are higher as of Monday morning and are having the most positive point impact on the overall index.
— Hakyung Kim, Gina Francolla
English (US)