Australia

Australian shares are signaling gains this morning following a broadly unsuccessful day for global markets. Investors were nervous at the start of this week following unforeseen military mutiny in Russia. Weak economic data from the Federal Reserve Bank of Dallas also fueled a risk-off sentiment in the US. 

ASX futures were higher Tuesday morning, having added 19 points or 0.3% as of 7:00am.

US stock indices ended lower Monday following unsettling military mutiny in Russia. US bond yields declined slightly and commodity markets were quiet.

The tech-heavy Nasdaq Composite shed 1.2% and the S&P 500 declined 0.45%, continuing last week's trend. The Dow Jones Industrial Average lost about 13 points, or less than 0.1%.
Gains in energy, real estate and materials stocks were outweighed by declines in shares of technology.

In commodity markets, Brent crude oil gained 0.7% to US$74.35 a barrel while gold added 0.1% to US$1,922.91.

Australian government bonds were lower, with the 2 Year yield declining to 4.11% and the 10 Year yield falling to 3.95%. US Treasury notes were mixed, with the 2 Year yield rising to 4.73% and the 10 Year yield declining to 3.72%.

The Australian dollar was little changed, at 66.74 US cents after previously closing at 66.79. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged down to 97.26.

Asia

Chinese stocks ended lower in their first trading session after a three-day holiday. The decline extended the market's consecutive losses last week, when risk appetite cooled after the Bank of England's more-aggressive-than-expected rate increase, as well as Fed officials' hawkish remarks. The benchmark Shanghai Composite Index dropped 1.5% to 3150.62. The Shenzhen Composite Index lost 1.8% and the ChiNext Price Index was down by 1.2%. A wide range of sectors weighed on the market. Chinese liquor makers were among the top losers, with Shede Spirits falling 4.2% and Wuliangye losing 2.8%. Media companies added further pressure, as China Publishing & Media dove 7.9% and Jiangsu Phoenix Publishing slumped 7.1%.

Hong Kong's Hang Seng Index closed 0.5% lower at 18794.13, falling in line with other markets across the region. Chinese economic data is in focus, and traders will be eyeing the country's upcoming PMI data for any pockets of resilience and signs of a continued economic recovery, said IG market analyst Yeap Jun Rong in a note. Decliners included Longfor Group, which fell 3.8%, while tech platform JD.com closed 2.9% lower and developer Country Garden Holdings fell 2.5%. Gainers included consumer electronics group Xiaomi, which added 4.3%.

Japanese stocks ended lower, dragged by falls in tech shares and trading houses, as concerns continued about policy tightening by global central banks and the economic outlook. Rakuten Group fell 2.5% and Marubeni Corp. declined 2.2%. Among individual movers, JSR surged 22% on reports that government-backed Japan Investment Corp. planned to buy the company. The Nikkei Stock Average fell 0.3% to close at 32698.81.

India's benchmark Sensex ended flat at 62970.00 after the Wagner Group's aborted mutiny in Russia over the weekend. Gains in industrial and bank stocks helped offset losses in tech shares. Tata Motors rose 1.5% and IndusInd Bank was 0.5% higher. Tata Consultancy Services dropped 0.9% and Tech Mahindra was 0.3% lower. Among individual movers, ICICI Securities was up 10.4%, following news its board will consider a potential delisting of its shares.

Europe

European stocks mostly edged lower after the weekend's failed armed rebellion in Russia, though oil and precious-metal prices rose as investors eyed potential developments. The pan-European Stoxx Europe 600 and the German DAX each dropped 0.1%, though the French CAC 40 advanced 0.3%.

"For now, investors can be assured that the overall situation remains unchanged, but the prospect of another challenge to Putin's rule will leave markets on edge," IG analyst Chris Beauchamp wrote.

The British FTSE 100 index dipped 0.1%, quickly reversing brief gains as concerns about high inflation, rising interest rates and a weakening economy returned to haunt investors as the week begins.

"Stocks in Asia had a mixed session following a week of losses in Europe and the US as hawkish central banks, weak Eurozone PMIs and a lack of major stimulus in China provoked risk-off sentiment," IG analysts wrote. "Russia's short-lived military coup over the weekend adds to the uncertainty," they said.

Defense stock BAE Systems was the biggest faller, down 3.3%, while British Airways owner International Consolidated Airlines fell 1.5%. Associated British Foods lost 0.3% following a business update. Gains for heavyweight mining stocks helped to limit the FTSE 100's losses.

North America

US stock indices ended lower Monday following unsettling military mutiny in Russia. US bond yields declined slightly and commodity markets were quiet.

The tech-heavy Nasdaq Composite shed 1.2% and the S&P 500 declined 0.45%, continuing last week's trend. The Dow Jones Industrial Average lost about 13 points, or less than 0.1%.
Gains in energy, real estate and materials stocks were outweighed by declines in shares of technology and communications firms and companies that rely on discretionary consumer spending.

Cruise operator Carnival led the way lower, dropping 7.7% after reporting a second-quarter loss and higher costs. The selloff spilled over into shares of rival Norwegian Cruise Line Holdings, which fell 4.5%. The daily losses notwithstanding, Carnival and Norwegian remain among the S&P 500's top-performing stocks in June.

Stocks started Monday mostly higher but gave up the gains after the Federal Reserve Bank of Dallas said its monthly survey of Texas business activity showed a contraction in June.

Manufacturing output and selling prices declined, while employment growth also weakened. Although its broad gauge of Texas business conditions was less negative than in May, it improved by less than analysts predicted.

"Equity markets are providing the least amount of opportunities right now," said Razvan Remsing, director of Investment Solutions at systematic trading firm Aspect Capital. "They're not a drag; they're almost not a feature."

Aspect's computer models, which follow trends up and down in futures tied to stocks, bonds, commodities and foreign exchange, are instead finding profitable trades in currencies, especially in Europe, in agricultural and energy markets, and in falling bond prices, he said.

Will Nasgovitz, chief executive of Milwaukee fund manager Heartland Advisors, said that he is hunting for bargains in segments where shares have sunk but could bounce back like home builders have after tumbling last year.

Natural gas producers, for instance, sold off following an unusually warm winter that sank fuel demand and prices. Nasgovitz also has his eye on cardboard box makers, since they have been weighed down by built-up inventories in response to the pandemic e-commerce boom.

"We're taking what the market gives us," Nasgovitz said. "There are pockets of opportunity."

With conflict between Russian President Vladimir Putin and Wagner paramilitary group owner Yevgeny Prigozhin avoided for now, investors are focusing on more conventional market drivers: inflation and growth prospects.