Asian stocks were down on Wednesday; Despite the rise in protests on Wall Street, following virtual talks between Joe Biden and Xi Jinping. The Nikkei 225, Japan benchmark fell 0.4% to 29688.33. The Hong Kong Hang Seng fell to 25621.91 and fell 0.4%. South Korea’s Kospi fell 1.2% to 2962.42. The Australian S&P/ASX 200 fell to 7369.90 and lost 0.7% overall. While the Shanghai Composite reached the 3537.32 mark and increased by 0.5% in total.
The online talks between Biden and Cis on Monday seemed a step in the right direction. However, they have not made any significant decisions to resolve long-standing disputes over trade and other issues.
IG market strategist in Singapore Yeap Jun Rong noted that any news and concrete development from the meeting should still come. However, a friendly approach to resolving issues on both sides reduces the risk of political tensions in the markets. The shares closed higher on Wall Street as investors viewed both a surprisingly strong account of consumer spending as well as solid retail revenue reports.
According to the government, Americans raised prices last month and boosted their retail stores and online spending. The Commerce Department said retail sales rose 1.7% in October alone. This is the hugest gain since March. The S&P 500 Index rose 0.4% to 4700.90, slightly lower than the record set on November 8. The Dow Jones Industrial Average rose 0.2% to 36142.22. The Nasdaq rose 0.8% to 15,973.86.
Stocks and Profits
The tech stocks did a lot for the benchmark S&P 500, making it slightly more profitable than a loser. Chipmaker Qualcomm grew by 7.9%. A broad range of corporations that rely on customer spending created huge benefits. Home Depot grew by 5.7% after home improvement retail sales reported boosting sales and generating substantial profits amid hot housing market conditions in the third quarter. The results strengthened competitor Lowe by 4.2%.
There have been several companies that are dependent on consumer spending. The online market of Etsy grew by 5.1%. Nike gained 1.8%, while Tapestry grew 1.5%. The country’s largest retailer, Walmart, has had solid financial results, raising its profit forecast. Shares, however, fell 2.5%, and the significant gains made in the last few weeks returned. Target will release its results on Wednesday and Macy’s on Thursday.
Healthcare companies have also grown. However, manufacturers of household goods and consumer products, and communication companies have lagged behind the market. Investors received another economic stimulus upgrade from the Federal Reserve, saying industrial output rose 1.6% in October.
Wall Street Rise
Wall Street is closely viewing the recent economic reports; To have more hints on how consumers and businesses are coping with rising inflation. Companies are raising prices because they are experiencing supply chain problems and higher raw material costs. Consumers were willing to pay higher fees for many goods; Analysts, however, are concerned that consumers may eventually pull back on spending due to inflation.
Last week, the market was overwhelmed by growing concerns over inflation. This process took place after a strong run, which lasted several weeks. The previous phase of revenue is coming to an end. The market has very few economic reports and separate events to focus on by the end of the year.
On the New York Mercantile Exchange, the price of US oil New York Mercantile Exchange fell to 80.25 US dollars per barrel and fell by 51 cents. It traded up $80.76 a barrel on Tuesday, losing a total of 12 cents. Brent crude traded up $81.96 a barrel and adrift 47 cents. In currency trading, the US dollar strengthened from 114.80 yen to 114.85 Japanese yen. From September it rises to the level of 110 yen. The euro fell from $1.1322 to $1.1303.
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