Stocks On Wall Street Look Down, More Cities Face Lockdowns In China

Barry Adams
21 Nov, 2022
New York City

Rate jitters dominated market trading on the first day of new week and benchmark indexes eased on Wall Street. 

Investors are looking ahead to the release of the latest FOMC minutes on Wednesday and comments from the Fed officials later this week. 

Durable goods orders and new home sales data are on tap this week. 

The S&P 500 index dropped 0.8% to 3,934.69 and the Nasdaq Composite index 

 

Crude Oil Extend Losses On China Demand Worries 

Crude oil prices dropped after China placed more restrictions in Beijing and nationwide more than 24,000 coronavirus infections were reported for the second day in a row. 

China also reported its first Covid-related death in six months - a Beijing resident of 87-year old. 

This was the first documented death since the coronavirus outbreak in Shanghai in spring this year. 

The People's Bank of China also left its ley lending rate for medium and long terms unchanged. The rates have been unrevised for the third month in a row, following the weakening of the yen.  

The central bank left its one-year loan prime rate to 3.65% and five-year loan prime rate to 4.3%, the central bank said in an announcement today. 

The five-year rate, the reference rate for mortgage lending, was lowered by 15 basis points in May and August and by 5 basis points in January. 

The People's Bank of China reviews its lending rates on a monthly schedule. 

Crude oil declined $3.99 to $75.04 a barrel and natural gas jumped 39 cents to $6.69 a thermal unit. 

The yield on 2-year Treasury notes rose to 4.53%, 10-year Treasury notes eased to 3.80% and 30-year bonds to 3.89%. 

 

European Markets Trend Lower On Rising Tensions with Russia

Major averages in Europe also traded lower after commodities-linked stocks led the decliners on rising coronavirus infections in China. 

Geopolitical tensions were also on the rise int the region after Russia escalated bombing around the Zaporizhzhya nuclear power plant.

The DAX index declined 0.4% to 14,379.93, the CAC-40 index fell 0.2% to 6,634.45  and the FTSE 100 index edged lower 0.1% to 7,376.85. 

 

Asian Markets Fall, Berkshire Hikes Trading House Stakes In Japan 

Asian markets closed lower and inflation worries partly fueled by the rising U.S. dollar coupled with the rising tensions between Russia and NATO nations over the weekend.  

The Nikkei index in Tokyo traded sideways and Japanese stocks were in focus after Warren Buffett controlled Berkshire Hathaway increased stakes in five largest trading houses. 

Marubeni gained 1.2%, Mitsubishi Corp jumped 4.4%, Mitsui & Co increased 0.2%, Sumitomo Corp advanced 1.2% and Itochu Corp advanced 0.9%. 

The Nikkei 225 index edged up 0.2% to 27,944.79, the Shanghai Composite index decreased 0.4% to 3,085.04, the Hang Seng Index dropped 1.9% to 17,655.91 and the Sensex index edged down 0.9% to 61,144.84. 

Stocks in India traded lower on general weakness in international markets and rising worries that foreign investors are likely to accelerate funds withdrawal and repatriate on rising U.S. rates. 

Archean Chemical advanced 12% to 458.15 rupees after the company raised about $180 million and priced its initial public offering for 407 rupees or $5.0 a share.