ArmInfo. On Wednesday, March 4, global markets continued to show negative momentum. US stock indices closed lower in the previous session. In the Asia-Pacific region, indices are also falling. Meanwhile, European markets are showing mixed results.
US stock indices closed lower on Tuesday amid no signs of a de-escalation in geopolitical tensions in the Middle East. Investors fear that a widening conflict will disrupt global trade, increase inflationary pressure, and worsen the global economic situation. Meanwhile, Federal Reserve benchmark interest rate futures indicate a 95.4% chance of keeping the rate unchanged at the meeting ending on March 18, according to CME FedWatch data. At the close, the blue-chip Dow Jones Industrial Average fell 0.83% to 48,501.3 points. The broad market S&P 500 index fell 0.94% to 6,816.6 points, while the tech-heavy Nasdaq Composite fell 1.02% to 22,516.7 points.
Among corporate stocks, the leading decliners were shares of major tech companies: Intel Corp. (-5.9%), Tesla (-3%), Alphabet Inc. (-2.3%), Amazon.com Inc. (-2.2%), Nvidia Corp. (-1.9%), Microsoft Corp. (-1.2%), Apple Inc. (-0.9%), and International Business Machines (-0.4%). Pressure on stocks of carriers and travel companies continues amid disruptions to air travel worldwide, as well as a sharp rise in oil prices, which could lead to a significant increase in costs for airlines and cruise operators. Against this backdrop, shares of this sector are declining, including United Airlines Holdings (-5.2%), Carnival Corp. (-5.4%), American Airlines Group (-4.5%), Delta Air Lines (-3.9%), and Royal Caribbean (-3.2%). Despite the surge in energy prices, oil producer stocks are also declining, including Exxon Mobil (-1.8%), ConocoPhillips (-0.5%), Marathon Petroleum Corp. (-0.6%), and Chevron Corp. (-0.4%).
Asian stocks are trading negatively on Wednesday. In Japan, the Nikkei 225 index is down 3.78%. Sumitomo Metal Mining (-11.4%) is the most significant decliner. Mitsui Kinzoku (-10.4%), Dowa Holdings (-10.2%), Sojitz Corp. (-9.3%), and JGC Holdings (-9.3%) are also down significantly. Shares of BayCurrent (+5.8%), Oriental Land (+2.7%), ZOZO (+2.6%), Toho (+2.2%), and Trend Micro (+1.8%) are trading higher.
In China, the Shanghai Composite Index is down 1.12%, while the Hong Kong Hang Seng Index is down 2.54%. The leading decliners on the Hang Seng Index are China Life Insurance (-7%), AIA Group (-5.7%), Wuxi Biologics (-5.3%), Alibaba (-5.2%), and CK Hutchison Holdings (-5.1%). Shares of China Hongqiao Group (+3.3%), Xinyi Solar Holdings (+2.6%), Xiaomi (+1.2%), Trip.com Group (+1%), and New Oriental Education & Technology Group (+0.2%) are trading higher.
In South Korea, the KOSPI Index is down 11.22%. The biggest declines were seen in Korea Zinc (-16.4%), Hyundai Motor (-16%), Posco (-13.8%), Samsung Electronics (-11%), SK Hynix (-8.5%), and Korean Air Lines (-7.9%).
Australia's S&P/ASX 200 stock index is down 1.94%. BHP is down 3.5%, and Rio Tinto is down 1.6%.
European stock markets are mixed on Wednesday. The Stoxx Europe 600 composite index rose 0.6% to 605.7 points. Britain's FTSE 100 fell 0.1%, France's CAC 40 rose 0.1%, and Germany's DAX added 0.4%.
Today's top gainers were Flutter Entertainment (+3.03%), Experian (+2.09%), Danone (+2.00%), Infineon (+1.85%), Accor (+1.84%), and Munich Re Group (+1.58%). Among the worst performers were Vistry Group (-19.06%), amid news of the separation of the chairman and CEO roles, as well as Adidas (-7.10%), Weir Group (-7.23%), Bayer (-3.63%), Renault (-1.33%), and Thales (-1.04%).
The Russian stock market is showing moderate growth on Wednesday, March 4, amid rising energy prices. Investor sentiment is being supported by concerns about possible supply disruptions through the Strait of Hormuz. These risks are pushing up oil and gas prices, which is generally positive for the Russian market.
