In other developments, Singapore’s economy grew 14.3% year-on-year in the second quarter, official advanced estimates showed Wednesday. It was slightly above economist expectations for a 14.2% year-on-year jump, according to a Reuters poll.
Still, the economy contracted by 2% as compared with the previous quarter, Singapore’s Ministry of Trade and Industry said.
· China, HK stocks fall as excitement around RRR cut fades
China stocks fell on Wednesday after two consecutive days of gains, as excitement from policy easing fades, and investors shift their attention to rising Sino-U.S. tensions.
Hong Kong stocks also dipped amid gloomy mood across Asian markets, as the biggest jump in U.S. inflation in 13 years triggered fears of an earlier-than-expected U.S. monetary tapering.
The CSI300 index fell 0.9% to 5,095.67 points by lunch break, while the Shanghai Composite Index lost 0.8% to 3,537.26 points.
Hong Kong’s Hang Seng index dropped 0.6%.
Mainland Chinese stocks had gained earlier this week, spurred by the central bank’s surprise cut in banks’ required reserve ratio (RRR) announced late on Friday.
People’s Bank of China said on Tuesday that the move has not altered its prudent monetary policy stance.
The 50-basis-point RRR cut and fiscal support, “are unlikely sufficient to reverse the growth downtrend, as the drag from the slowing property sector is too strong to fully offset,” wrote Ting Lu, Nomura’s Chief China Economist.
· China's Jan-June direct foreign investment up 28.7% -commerce ministry
· Japanese shares end lower on caution ahead of Fed chair's testimony
Japanese shares closed lower after two straight sessions of gains on Wednesday, with investors holding their bets ahead of U.S. Federal Reserve Chair Jerome Powell’s congressional testimony.
The Nikkei share average lost 0.38% to end at 28,608.49, while the broader
Topix slipped 0.23% to 1,963.16.
For the week so far, the Nikkei is up 2.4% so far, while the Topix is almost 2.7% higher.
European stocks pulled back slightly on Wednesday following a hotter-than-expected U.S. inflation report released Tuesday.
The pan-European Stoxx 600 slid 0.3% below the flatline in early trade, with utilities and travel and leisure stocks dropping 0.9% to lead losses while autos gained 0.9%.
· Stronger pound weighs on FTSE 100 as inflation gathers steam
London’s FTSE 100 fell on Wednesday as a stronger pound weighed on export-oriented retailers, while inflation jumped past the central bank’s target for the second straight month as Britain is set to ease lockdowns later this month.
The blue-chip FTSE 100 index dropped 0.5% with travel stocks down nearly 1.2%, while retailers Unilever, GlaxoSmithKline and Diageo were among the top drags.
British inflation rose further above the Bank of England’s target in June at 2.5%, up from 2.1% in May, led by higher prices for food, fuel, second-hand cars, clothing and footwear, official data showed.
· U.S. stock futures dip after major averages pull back from records
U.S. stock index futures were slightly lower in early morning trading on Wednesday, after the major averages finished Tuesday regular trading in the red, weighed down by inflation fears.
Futures contracts tied to the Dow Jones Industrial Average fell 89 points. S&P 500 and Nasdaq 100 futures were also both mildly lower.
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