Stocks start mixed; banks, energy sectors gain, tech falls

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Stocks are off to a mixed start on Wall Street Monday as gains for banks and energy companies are checked by drops in the technology sector. The S&P 500 was off 0.4% in the early going, while the tech-heavy Nasdaq lost 1.1%. The Dow Jones Industrial Average was up 0.4%, however, and a measure of small-company stocks was also higher. Treasury yields continued to climb. The yield on the 10-year Treasury note rose to 1.49%, the highest since late June. That helped send bank stocks higher, and energy companies were also benefiting from a 2% rise in the price of crude oil.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

TOKYO (AP) — Global shares were mixed Monday, as fears of further waves of coronavirus outbreaks clouded the economic outlook for the region, tempering gains.

France's CAC 40 added 0.6% to 6,678.66 in early trading, while Germany's DAX gained nearly 0.9% to 15,667.40. Britain's FTSE 100 edged up 0.3% to 7,072.39. U.S. shares were set for gains, with the future for the Dow industrials up 0.5% at 34,840.00. The S&P 500 future rose 0.4% to 4,462.25.

Japan's benchmark Nikkei 225 was little changed, inching down less than 0.1% to finish at 30,240.06 after zigzagging earlier in the day. Australia's S&P/ASX 200 gained 0.6% to 7,384.20. South Korea's Kospi added 0.3% to 3,133.64. Hong Kong's Hang Seng inched up 0.1% to 24,208.78, while the Shanghai Composite shed 0.8% to 3,582.83.

Japan's ruling party holds an election later this week to choose a leader, who is likely to succeed Yoshihide Suga as prime minister after just one year in office. All the candidates are certain to stick to the nation's pro-U.S. policies, despite some nuances in their views.

They also are all promising to boost government spending to try to catalyze growth in the world's third largest economy.

Analysts also say Japan’s central bank “tankan” economic survey for the third quarter, due out Friday, likely will show a deterioration in business conditions because of various disruptions to supply chains and renewed outbreaks of COVID-19 in many regions.

Although some parts of the world have lifted COVID-19 restrictions and are gradually returning to “normal” life, worries remain in Asia about further waves of infections because vaccine rollouts have been slower than the West in some nations.

In Singapore, further COVID-19 restrictions kicked off in an attempt to curb the virus' spread, as daily new cases have topped the city-state's peak reached in April 2020.

“”Overall, the manufacturing sector may remain resilient as seen from previous phases of restrictions, but the services sector may come under pressure. That said, previous business adjustments and softer tightening compared to past restriction phases may aid to reduce some impact," said Yeap Jun Rong, market strategist at IG in Singapore.

U.S. markets have had a rough September and investors could be in for more volatility given various concerns, including COVID-19 and its lingering impact on the economy, along with a slow recovery for the employment market.

Worries over troubled Chinese real estate developer Evergrande are still weighing on global markets. Some what they are owed by Evergrande, seeking to dispel fears of financial turmoil as it struggles under $310 billion in debt.

In energy trading, U.S. benchmark crude added 91 cents to $74.89 a barrel in electronic trading on the New York Mercantile Exchange. It rose 68 cents to $73.98 per barrel on Friday. Brent crude, the international standard, gained 94 cents to $79.03 a barrel.

In currency trading, the U.S. dollar inched down to 110.68 Japanese yen from 110.72 yen. The euro cost $1.1710, down from $1.1714.