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Global market update: APAC shares mixed, France swings to far-right

Published 01/07/2024, 10:41 am
© Reuters.
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Investing.com - Asia-Pacific indices kicked off the week on a mixed note, following a lower close amongst US benchmarks on Friday and political uncertainties in Europe as the National Rally (RN) party won the first round of France's parliamentary election over the weekend.

By 10:45 am AEST (12:45 am GMT) the S&P/ASX 200 and KOSPI 200 dipped 0.7% and 0.3%, respectively, while the Nikkei 225 lifted 0.5%.

In the US, shares of sporting goods giant Nike Inc (NYSE:NKE) experienced their worst day ever, which led to losses for both the Dow Jones Industrial Average and S&P 500 on Friday.

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Friday also saw the tech-heavy NASDAQ Composite lose 0.7%, yet it remains close to its all-time high. It was the only one of the three major indexes to end last week with a gain. Meanwhile, the Dow Jones Industrial Average lost 0.1%, or 45 points.

Treasury yields saw an increase, with the yield on the benchmark 10-year note rising to 4.342%, up from 4.287% on Thursday. Yields, which increase when prices drop, have risen for the second consecutive quarter and eight out of the last ten.

In the commodities market, corn prices experienced their most significant drop of the year after a report from the Agriculture Department revealed that farmers had planted more acres of America's top cash crop than anticipated. Brent crude oil dropped by 0.3% to US$85.00 a barrel, while gold remained steady at US$2,326.75.

In local bond markets, the yield on Australian 2 Year government bonds fell to 4.16%, while the 10 Year yield also decreased to 4.31%. US Treasury notes were up, with the 2 Year yield at 4.75% and the 10 Year yield at 4.40%.

Chinese shares had a mixed performance, with the benchmark Shanghai Composite Index rising by 0.7% to 2,967.40. Meanwhile, Hong Kong shares remained relatively unchanged, with tech companies and electric vehicle manufacturers dragging the market down, while Chinese state-owned enterprises led the gains.

Japanese stocks ended on a high note, with machinery makers, trading houses, and banks leading the charge, as a weak yen boosts hopes for earnings growth. Indian shares, however, ended lower, breaking a four-day winning streak.

In Europe, UK stocks slipped on Friday, with the FTSE 100 Index dropping 0.2% to 8,164.12. European shares closed mixed, with the STOXX Europe 600 Index down 0.2% to 511.42, Germany's DAX rose 0.1% to 18,235.45, and France's CAC 40 lost 0.7%.

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