Business News Asia
The Dow closes lower as investors continue to sell stocks on recession fears after the Federal Reserve (Fed) insisted on tightening monetary policy to curb inflation.
In addition, the Purchasing Managers’ Index (PMI) for the manufacturing and service sectors in the U.S. contracted for the third month, which further weighed on the market.
- The Dow Jones Industrial Average closed at 29,590.41, down 486.27, or -1.62%.
- The S&P 500 index closed at 3,693.23, down 64.76, or -1.72%.
- The Nasdaq index closed at 10,867.93, down 198.88, or -1.80%.
Crude oil contracts closed significantly lower. It was pressured by growing concerns that the central bank’s aggressive tightening of monetary policy could trigger a recession and will affect energy demand.
- WTI crude futures fell $4.75, or 5.7%, at $78.74 a barrel.
- BRENT crude futures fell $4.31, or 4.8%, to close at $86.15 a barrel.
Gold contracts closed at the lowest level in more than 2 years, under pressure from the appreciation of the dollar against other currencies and the rise in short-term bond yields.
- Gold fell $25.5, or 1.52%, to $1,655.6 per ounce. This is the lowest close since early April 2020 and fell 1.7% this week.
- Silver futures fell 70.7 cents, or 3.6%, at $18.91 an ounce.
- The platinum fell $47.3, or 5.22%, to close at $858.7 an ounce.
- Palladium fell $104.50, or 4.8%, to close at $2,070.50 an ounce.
The dollar strengthened against the other currencies in the basket, supported by the Federal Reserve’s commitment to raise interest rates further.
- The dollar index against the six major currencies in a basket of currencies rose 1.65% to 113.1890.
- The US dollar strengthened against the yen at 143.35 yen from 142.41 yen.
- The US dollar strengthened against the Swiss franc at 0.9828 Swiss franc from 0.9787 Swiss franc.
- The US dollar strengthened against the Canadian dollar at 1.3604 Canadian dollars from 1.3492 Canadian dollars.
- The euro was lower against the dollar at $0.9674 from $0.9833.
- The pound fell to $1.0847 from $1.1251.
- The Australian dollar weakened to $0.6517 from $0.6640.