US stocks down and energy sector tumbles
US stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018.
The Dow Jones Industrial Average fell 178.74 points, or 0.73 percent, to 24,285.95, the S&P 500 lost 17.37 points, or 0.66 percent, to 2,632.56 and the Nasdaq Composite dropped 33.27 points, or 0.48 percent, to 6,938.98.
Oil majors Exxon Mobil Corp and Chevron Corp fell about 2 percent each and were the top losers on the Dow Jones Industrial Average. Oilfield services providers Schlumberger NV and Halliburton Co fell nearly 3 percent. Marathon Oil Corp shed 3.5 percent. That pressured the S&P energy index, which fell 3.1 percent, the most among 11 major S&P sectors, which were either trading flat or in the red.
The Nasdaq, which has lost 3.8 percent so far this week, is on pace for its biggest weekly decline since late March as worries about a cooling global economy and peaking corporate earnings have led investors to sell high-growth names, particularly in the technology sector. The S&P index recorded one new 52-week highs and 14 new lows, while the Nasdaq recorded two new highs and 32 new lows.
Saudi Arabia stocks higher
Saudi Arabia stocks were higher after the close on Thursday, as gains in the Financial Services, Insurance and Agriculture & Food sectors led shares higher.
At the close in Saudi Arabia, the Tadawul All Share gained 1.24percent. The best performers of the session on the Tadawul All Share were Anaam International Holding Group, which rose 10.00percent or 1.26 points to trade at 13.86 at the close. Meanwhile, Alkhaleej Training & Education Co added 4.40percent or 0.56 points to end at 13.30 and Dallah Healthcare Holding Company was up 4.04percent or 2.30 points to 59.30 in late trade.
The worst performers of the session were Saudi Industrial Export Co, which fell 9.99percent or 8.80 points to trade at 79.30 at the close. Saudi Enaya Cooperative Insurance declined 2.57percent or 0.70 points to end at 26.55 and Halwani Bros was down 1.91percent or 0.85 points to 43.55.
Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 137 to 37 and 10 ended unchanged. Crude oil for January delivery was down 0.46percent or 0.25 to $54.38 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January fell 0.17percent or 0.11 to hit $63.37 a barrel, while the December Gold Futures contract rose 0.07percent or 0.80 to trade at $1228.80 a troy ounce. EUR/SAR was up 0.20percent to 4.2797, while USD/SAR rose 0.04percent to 3.7532. The US Dollar Index Futures was down 0.17percent at 96.420.
China, Hong Kong stocks fall
China and Hong Kong stocks fell on Friday amid worries about economic growth, and uncertainty around Sino-US trade talks.
The CSI300 index fell 1.4 percent, to 3,168.21 points at the end of the morning session, while the Shanghai Composite Index lost 1.6 percent, to 2,602.30 points. In Hong Kong, the Hang Seng index dropped 0.3 percent, to 25,941.20 points, while the Hong Kong China Enterprises Index lost 0.6 percent, to 10,380.85.
Investors are sceptical that a deal will be struck at the high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping during the G20 summit in Buenos Aires next week. Although Trump said on Thursday that he hoped he can make a deal with China when he meets Xi, the Trump administration shows little sign of backing down on its demands and rhetoric. Meanwhile, China’s CSI300 financial sector sub-index was lower by 1.04 percent, the consumer staples sector down 1.17 percent, the real estate index down 2.15 percent and the healthcare sub-index down 1.05 percent. Chinese H-shares listed in Hong Kong fell 0.63 percent at 10,380.85, while the Hang Seng Index was down 0.3 percent at 25,941.20. The smaller Shenzhen index was down 2.6 percent and the start-up board ChiNext Composite index was weaker by 2.3 percent.
India sensex down 219 points
Benchmark indices BSE Sensex and NSE’s Nifty 50 erased their morning gains and closed lower for the third straight session on Thursday, dragged mainly by metal, power and banking stocks. The Indian rupee strengthened for the seventh consecutive day, its longest winning streak since February 2017, against the US dollar as falling crude oil prices reduced fears of fiscal slippage and higher inflation. IT stocks such as TCS and Infosys, which has been under selling pressure for the last two sessions, advanced today.
The BSE Sensex closed 218.78 points, or 0.62percent, down at 34,981.02, while the Nifty 50 ended 73.30 points, or 0.69percent, lower at 10,526.75. The BSE MidCap and SmallCap indices fell 0.74percent and 0.44percent, respectively. All the sectoral indices on BSE, except capital goods, posted losses with metal, telecom, power, realty, basic materials and consumer durables falling over 1percent. Adani Ports, L&T, TCS, ONGC and HDFC were among the major gainers on the key indices, whereas Mahindra, Tata Steel, Wipro, Axis Bank and Indian Oil were among top losers.
Japan’s nikkei retreats
The Nikkei 225’s sharp retreat from October’s 27-year highs goes on. It has now brought the index close to what could prove a key support zone. Current levels are about 850 points above 20,779. That is the top of a band formed between there and 2018’s low, the 20,299, hit on March 25.
At present, the bulls seem to be staging something of a fightback at support which held in late October. It centers around 21,162. That was also last Monday’s daily close. Should it hold, then perhaps those bulls can use it as a platform for a new foray back towards the previous significant high, November 7’s 22,597. Right now, however, it does not look as though the index has the sort of upward momentum which would be required for a serious or lasting upward test.
Taiwan stocks lower
Taiwan stocks were lower after the close on Friday, as losses in the , Electronic Parts/Components and Oil, Gas & Electricity sectors led shares lower. At the close in Taiwan, the Taiwan Weighted lost 0.49percent. The best performers of the session on the Taiwan Weighted were Green Energy Technology Inc, which rose 10.00percent or 0.62 points to trade at 6.82 at the close. Meanwhile, Danen Technology Corp added 9.84percent or 0.30 points to end at 3.35 and Favite Inc was up 9.56 percent or 1.30 points to 14.90 in late trade. The worst performers of the session were Uniflex Technology Inc, which fell 8.79percent or 1.05 points to trade at 10.90 at the close.
CAC 40 retreats as dollar weakens for second day
French stocks fell on Thursday as the dollar weakened for a second straight session after a recent rally. With the US markets closed for the Thanksgiving holiday and concerns about the Italian budget standoff easing slightly, investors looked ahead to next week’s G20 summit and the weekend EU summit on Brexit for directional cues.
The benchmark CAC 40 index was down 39 points or 0.79 percent at 4,936 in opening deals after rising 1 percent on Wednesday. Automaker Renault fell 1.1 percent and Peugeot declined 1.4 percent. Banks BNP Paribas, Credit Agricole and Societe Generale lost around 2 percent each.