· Jim Cramer says cyclical stocks are worth buying after Monday’s dip
CNBC’s Jim Cramer said Monday that after a brief dip in cyclical stocks, investors now have a chance to trim their tech holdings and buy industrial plays.
“You need to stay diversified. If you only own tech, you’re going to miss out on the great reopening stocks that were thrown away today,” the “Mad Money” host said after tech stocks rose in Monday’s session following weeks of declines.
Cramer recommended Nucor, Boeing, Union Pacific and other industrial stocks after shares fell on a countertrend trade.
· Stock futures dip after tech stocks rally
U.S. stock index futures were slightly lower in early morning trading Tuesday, after all three major averages posted gains during regular trading hours Monday.
Futures contracts tied to the Dow Jones Industrial Average shed 79 points. S&P 500 futures and Nasdaq 100 futures both traded in slightly negative territory.
The Dow finished Monday’s session 103 points higher, for a gain of 0.32%. The S&P 500 broke a two-day losing streak and advanced 0.7%. The Nasdaq Composite was the relative outperformer, jumping 1.23% for its fifth positive session in six.
The gains came as the 10-year Treasury yield retreated, after touching a 14-month high last week.
· China worries weigh on Asian stocks
Asian stocks reversed earlier gains on Tuesday, dragged down by declines in Chinese markets, which were jolted by a new round of sanctions, after ebbing inflation fears had helped shore up broader sentiment in the region.
Investors now await a closely watched congressional appearance by U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen.
The negative sentiment appears set to weigh on European stocks with as EUROSTOXX 50 futures easing 0.42% and FTSE futures 0.61%.
S&P 500 futures fell 0.28%.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.76%, hurt by a 1.42% fall in Chinese blue chips.
The United States and others, including the European Union, sanctioned Chinese officials on Monday over human rights abuses in Xinjiang, and Beijing hit back with punitive measures against European lawmakers, diplomats, institutes and families.
“The fall could be due to the sanctions,” said Iris Pang, chief economist for greater China at ING Wholesale Banking. “More pressure from international politics is going to affect asset markets.”
· Japanese shares end lower as China stocks, U.S. bond yields weigh
Japanese shares snapped early gains to end lower on Tuesday, tracking lacklustre performance in Chinese markets as investors locked in profit on a recent rally in some mainland firms, while the volatility of U.S. bond yields also dampened risk appetite.
The Nikkei share average fell 0.61% to close at 28,995.92, while the broader Topix declined 0.94% to 1,971.48.
“The retreat in the afternoon is simply due to the outside factors, such as declines in China stocks and U.S. futures,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“Investors held their bets as they are still cautious about the direction of the U.S. bond yields.”
Treasury yields dipped on Monday, but held near more than one-year highs as investors bet on a faster U.S. economic recovery and higher inflation pressures.
· Baidu has rallied 200% in the past year. Analysts bet it can keep going as it lists in Hong Kong
Baidu shares rose just under 1% at the open in the company’s Hong Kong debut Tuesday.
The Chinese technology giant, which is already listed in the U.S., raised $3.1 billion in the Hong Kong secondary listing.
· China stocks fall as western sanctions over Xinjiang weigh on sentiment
Chinese stocks fell on Tuesday as western sanctions against China reduced risk appetite and lingering worries over policy tightening continued to weigh on the market.
The blue-chip CSI300 index fell 1%, to 5,009.25 points, while the Shanghai Composite Index declined 0.9% to 3,411.51 points.
The United States, the European Union, Britain and Canada imposed sanctions on Chinese officials on Monday for human rights abuses in Xinjiang, and Beijing hit back immediately with broad punitive measures against the EU.
· South Korean shares slipped for a third straight session on Tuesday, hit by concerns about volatile U.S. bond yields, while investors awaited fresh comments from top U.S. policymakers. The won was nearly unchanged, while the benchmark bond yield fell.
· European markets open lower as Covid surge shakes sentiment
European stocks opened lower Tuesday as concerns over a third wave of Covid infections in the region rattle investor sentiment.
The pan-European Stoxx 600 fell 0.5% at the start of trading, with autos dropping 1.6% to lead losses as all sectors and major bourses slid into negative territory.
Investor sentiment in Europe is likely to be weighed down this week by reports of rising infections in the region that could derail and delay plans to ease restrictions and lift lockdowns. Parts of France are again under partial lockdown now, and some officials in Germany are reportedly mulling an extension to current lockdown measures.
Reference: Reuters,CNBC
Thai
Eng