Industrials Underperforming As Hang Seng Enters Bear Market

The standout move overnight was a sharp decline in the Hang Seng which brought the index into bear market (-20% from Feb 2021 peak) territory, on continued concerns over the regulatory environment.

• Meanwhile European markets are broadly lower, with industrials and consumer staples dragging down the major indices.
• Tech is outperforming, both in Europe and the U.S. (NASDAQ off slightly less than the DJ/S&P).
• Note Deere earnings beat estimates and they boosted its net income forecast for 2021.
• Japan's NIKKEI closed down 267.92 pts or -0.98% at 27013.25 and the TOPIX down 16.51 pts or -0.87% at 1880.68. China's SHANGHAI closed down 38.221 pts or -1.1% at 3427.334 and the HANG SENG ended 466.61 pts lower or -1.84% at 24849.72.
• European stocks are weaker, with the German Dax down 68.3 pts or -0.43% at 15765.81, FTSE 100 down 14.72 pts or -0.21% at 7058.86, CAC 40 down 25.62 pts or -0.39% at 6605.89 and Euro Stoxx 50 down 6.49 pts or -0.16% at 4124.71.
• U.S. futures are lower, with the Dow Jones mini down 138 pts or -0.4% at 34680, S&P 500 mini down 17 pts or -0.39% at 4384.5, NASDAQ mini down 31.5 pts or -0.21% at 14896.5.