Global stocks: S&P 500, Nasdaq drop on recession fears; gold hits record 1-year high

The S&P 500 slid 0.25% at 4,090.20. The Nasdaq Composite lost 1.07% at 11,996.86. The Dow Jones Industrial Average gained 0.24% at 33,483.67.

A report by ADP National Employment released on Wednesday showed that US private companies hired much lesser number of workers than expected in March. The latest weak report on private payrolls followed Tuesday’s weak data on job openings and falling factory orders.

A survey by the Institute for Supply Management showed that the services sector slowed more than expected in March on falling demand, while a measure of prices paid by services businesses fell to a near 3-year low. 

The yield on 10-year treasuries fell 5 basis points to 3.29%.

Bullion 

Gold scaled to a record one-year high on Wednesday on economic slowdown worries.

Spot gold ended flat at $2,020.39 an ounce, after rising at $2,031.89,  highest since March 2022.

US gold futures for June delivery fell $2.60 to $2,035.60 an ounce. Silver for May delivery fell 6 cents to $25.04 an ounce.

European stocks 

European stocks dipped on Wednesday on concerns of slower-than-expected economic recovery in the euro zone.

The pan-European STOXX 600 index slipped 0.2%, with industrial goods and services index down 2.1%.

S&P Global’s Composite Purchasing Managers’ Index (PMI) rose to a 10-month high of 53.7 in March from 52.0 in February. 

The rating agency said there was also a difference among member countries with a considerable upward push to growth coming from Spain and, to a lesser extent, Italy. But activity in Germany and France rose only modestly, painting a more conservative picture of underlying economic health. 

In Britain, FTSE 100 rose 0.4% at 7,662.94. France’s CAC 40 fell 0.4% at 7,316.30. Germany’s DAX dropped 0.5% at 15,520.17.

Canada

Canadian equities edged lower on Wednesday, with the Toronto Stock Exchange’s S&P/TSX composite index falling 116.21 points, or 0.6%, at 20,159.55.

New Zealand

New Zealand stocks fell after the central bank hiked interest rates. The benchmark S&P/NZX 50 index slipped 0.3% at 11,866.83. 

The Reserve Bank of New Zealand raised its rate by 50 basis points to 5.25% to tackle soaring inflation.

Asian shares

Asian shares slipped on Wednesday following a decline on Wall Street on Tuesday after reports of weak economic data. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.02%.

Japan’s benchmark Nikkei 225 lost 1.7% at 27,813.26. Australia’s S&P/ASX 200 index ended 0.02% higher at 7,237.20. South Korea’s Kospi added 0.2% at 2,485.21. 

Stock markets in Hong Kong and China were closed for the Qingming festival.

Oil prices

Brent crude for June delivery rose 5 cents to $84.99 a barrel on Wednesday. Benchmark US crude oil for May delivery fell 10 cents to $80.61 a barrel.