World shares mixed after big-tech led drop on Wall Street

Hong Kong, Oct 5 (BUS): Global stocks were mixed on Tuesday after a broad decline in Wall Street led by technology companies.

Shares rose in Paris, London and Hong Kong, but fell in Tokyo.

Inflation fears weighed on sentiment, with the price of US oil hitting nearly $78 a barrel, its highest since 2014. It jumped after the Organization of the Petroleum Exporting Countries and its allies stuck to a plan for a cautious increase in production despite rising global demand for crude. reports.

Sino-US tensions resurfaced after US Trade Representative Catherine Taye said she plans to hold frank talks with officials in Beijing over an interim trade deal aimed at resolving the tariff war.

Tai said she did not want to “inflame trade tensions with China”. But her comments indicated that US policy toward Beijing under President Joe Biden continued from the strategy adopted by his predecessor, Donald Trump.

Speaking to the Center for Strategic and International Studies in Washington, DC, she also said that the United States “must to the fullest extent defend our economic interests” and take “all necessary steps to protect ourselves from waves of damage inflicted over the years through injustice.” Competition.”

European stocks opened higher after a mixed session in Asia.

The German DAX rose 0.3% to 15078.68 and the CAC 40 in Paris rose 0.6% to 6513.04. In London, the FTSE 100 advanced 0.5% to 7,048.14.

US futures were higher. The Dow Jones Industrial Average future contract rose 0.2% while the S&P 500 contract also rose 0.2%.

In Asia, Tokyo’s Nikkei 225 fell 2.2% to 27822.12 and Seoul’s Kospi fell 1.9% to 2,962.17. Australia’s S&P/ASX 200 fell 0.4% to 7,248.40.

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Hong Kong’s Hang Seng rose 0.3% to 24104.15. Shanghai is closed until Friday due to a national holiday.

The yield on the 10-year Treasury bond settled at 1.49%.

Rising energy costs and supply chain problems are heightening concerns about inflation, and thus concern about the Federal Reserve’s plans to scale back bond purchases and eventually raise the benchmark interest rate.

“Assuming energy scarcity is the new normal, it is hard to see transient inflation as world central bankers have predicted/hoped it will be,” Oanda’s Jeffrey Haley said in a comment.

“The impact will be felt throughout global supply chains,” he said, adding that monetary policy cannot fully solve the problem.

On Monday, the S&P 500 fell 1.3% to 4,300.46. The Dow Jones Industrial Average fell 0.9% to 34002.92, and the Nasdaq Technology Index lost 2.1% to 14,255.48.

Small-cap stocks also fell. The Russell 2000 index fell 1.1% to 2,217.47.

Facebook was down 4.9% on the day after a former “60 Minutes” employee said the company had consistently chosen its own interests over the public good. The social network and its Instagram and WhatsApp platforms also suffered a global outage that began around mid-morning Monday US time, but ended early Tuesday in Asia.

In Asian trading on Tuesday, US crude rose 29 cents to $77.91 a barrel. Brent crude, the international pricing benchmark, rose 48 cents to $81.74 a barrel.

Wall Street will get more information on the health of the economy this week. On Tuesday, the Institute for Supply Management will release its services sector index for September. The service sector is the bulk of the economy and its health is a key factor for growth.

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On Friday, the Labor Department will release its employment report for September. The labor market has been struggling to fully recover from the damage caused by COVID-19 for more than a year.

The US dollar rose to 111.16 yen from 110.93 yen. The euro fell to $1.1602 from $1.1618.

RAE

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