Thursday, December 2, 2021

Global stock markets plunge after Wall Street sets record again

BEIJING (AP) – Global stock markets were mixed on Tuesday after Wall Street set an eighth day record.

London opened almost unchanged, while Frankfurt, Shanghai and Hong Kong moved forward. Tokyo and Sydney refused.

On Wall Street, the future benchmark S&P 500 was up less than 0.1%.

US stocks rallied on Monday, boosted by construction stocks after Congress last week approved a $ 1 trillion infrastructure bill.

Meanwhile, Deputy Chairman of the Federal Reserve System Richard Clarida said that the conditions for raising interest rates can only be met at the end of next year. Traders fear the surge in inflation could prompt central banks to abandon the stimulus that helped drive stock prices up.

“Investors will be looking for any clues that signal an adjustment in the narrowing of central banks and expectations for rate hikes,” said ActivTrades’ Anderson Alves in a report.

In early trading, London’s FTSE 100 shed less than 0.1% to 7,298.82, while the Frankfurt DAX rose 0.1% to 16,070.01. The CAC 40 in Paris lost less than 0.1% to 7,042.55.

On Wall Street, the Dow Jones Industrial Average fell less than 0.1%.

The S&P 500 added 0.1% on Monday. The Dow rose 0.3% and the composite Nasdaq added 0.1%, also setting new records.

In Asia, the Shanghai Composite rose 0.2% to 3,507.00, while the Nikkei 225 in Tokyo shed 0.8% to 29,285.46. The Hang Seng in Hong Kong rose 0.2% to 24,813.13.

Read Also:  Asian Stocks Fall Amid Rising Inflation In China

Seoul’s Kospi shed 0.1% to 2,962.46, while Sydney’s S&P-ASX 200 fell 0.2% to 7,434.20.

India’s Sensex fell 0.3% to 60,353.72. New Zealand, Bangkok and Jakarta were up, while Singapore was down.

Also on Tuesday, the Japanese government said wage growth fell to a three-month decline of 0.2% from the same period last year in September.

On Wall Street, steel and other companies that could benefit from infrastructure spending also rallied after Congress passed the Infrastructure Act.

Nucor added 3.6%. Sales of Vulcan Materials crushed stone and concrete increased by 4.9%. Equipment manufacturer Caterpillar gained 4.1%.

Investor worries about inflation were mitigated by higher corporate profits.

Advanced Micro Devices jumped 10.1%, the largest gain in the S&P 500 after Meta announced that parent company Facebook will use AMD chips in its data centers. Chipmaker Nvidia rose 3.5%.

The Labor Department is to publish data on wholesale inflation on Tuesday and consumer inflation on Wednesday.

In energy markets, US benchmark crude rose 42 cents to $ 82.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 66 cents to $ 81.93 on Monday. Brent crude, which is the basis for world oil prices, added 37 cents to $ 83.80 a barrel in London. In the previous session, they rose 69 cents to $ 83.43 a barrel.

The dollar fell to 112.97 yen from 113.24 yen on Monday. The euro exchange rate remained practically unchanged and amounted to $ 1.1588.

Nation World News Deskhttps://nationworldnews.com
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