Dockworkers at U.S. ports from Maine to Texas began picketing early today, striking over wages and automation concerns. The strike, if it continues for more than a few weeks, could exacerbate inflation and lead to supply shortages.
In an effort to resume negotiations with the International Longshoremen’s Union and avert a crippling strike at East Coast and Gulf ports, the U.S. Maritime Alliance has proposed a wage increase of nearly 50%, according to a memo sent to its member companies.
Meanwhile, Asian markets were mixed overnight. Japan’s Nikkei 225 index recovered some of the steep losses from the previous day. A quarterly “tankan” survey by the Bank of Japan revealed steady business confidence among large manufacturers, with a reading of 13, signaling an optimistic outlook. The survey is closely watched for its insights into the impact of the Bank of Japan’s monetary policy, especially after the central bank ended negative interest rates in March and raised the short-term rate to 0.25% in July.
Japan also reported a drop in its unemployment rate for August, falling to 2.5% from 2.7% in July, aligning with market expectations. The Nikkei 225 rallied 1.5% to 38,476.33 as the yen weakened. The dollar rose to 144.00 yen from 143.62 yen.
On Monday, the Nikkei plunged nearly 5% following the selection of Shigeru Ishiba as Japan’s next prime minister, succeeding Fumio Kishida, who resigned.
Australia’s S&P/ASX 200 dipped 0.7% to 8,214.80 after August retail sales increased by 3.1% year-over-year, surpassing expectations.
Markets in China and South Korea remained closed for holidays. Mainland Chinese markets, which saw their best day since 2008 on Monday, will stay closed until October 7 for the National Day break.
In the U.S., the S&P 500 closed at 5,762.45 on Monday, gaining 0.4% for the day and up 5.5% for the quarter, which ended yesterday. The Dow Jones Industrial Average also rose 0.4%, closing at 42,330.15, while the tech-heavy Nasdaq Composite increased by 0.4% to 18,189.17.
In the bond market, the yield on 10-year U.S. Treasury notes climbed to 3.79% last night, up from 3.76% on Friday.
