Thursday, June 8, 2023

Global stocks rise after Wall St breaks down strings

BEIJING ( Associated Press) – Global stocks and US futures rose on Monday after a seven-week slump in Wall Street as China eased anti-virus restrictions on trading activity in Shanghai and Beijing.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong advanced. Oil remained above $110 a barrel.

The future of Wall Street’s S&P 500 index was 0.9% higher on Friday after benchmarks ended the week at 6.6% after falling inflation. US markets are closed on Monday for a holiday.

“Providing a positive trend earlier this week, the market edged higher over the long weekend,” ING economists said in a report.

In early trade, the FTSE 100 was up 0.4% at 7,613.78 in London and the DAX in Frankfurt was up 0.7% at 14,564.68. The CAC 40 rose 0.8% to 6,565.13 in Paris.

On Wall Street, the Dow Jones Industrial Average futures were up 0.7%.

The S&P rose 2.5% on Friday, driven by gains from tech companies.

Investors were relieved after Commerce Department data showed US inflation, which prompted the Federal Reserve to raise interest rates, fell 6.3% in April from a year earlier, its first drop in 17 months. .

Markets are worried about whether the Fed can control inflation at a four-decade high without tipping the largest global economy into recession.

The US market has been in a recession for the past two months on fears of a hike in interest rates that could slow economic activity, and the impact of Russia’s war on Ukraine and a Chinese economic downturn.

Crude oil prices have risen nearly 60% this year on fears of supply disruptions from Russia, the second largest global exporter. Wheat prices have increased by about 50% and corn prices by 30%.

The Dow, which was dominated by tech stocks, gained 1.8% and the Nasdaq gained 3.3%.

In Asia, the Shanghai Composite Index rose 0.6% to 3,149.06 after more factories and shops were allowed to reopen in Beijing and Shanghai.

The Nikkei 225 in Tokyo rose 2.2% to 27,369.43 and the Hang Seng in Hong Kong rose 2.1% to 21,123.93. In South Korea, the Kospi rose 1.2% to 2,669.66.

Sydney’s S&P-ASX 200 was up 1.4% at 7,286.60.

India’s Sensex rose 1.8% to 55,856.06. Markets in New Zealand and Southeast Asia edged higher.

More factories, shops and other businesses have been allowed to reopen this week in Shanghai and the Chinese capital Beijing, after authorities declared the outbreak under control. The Shanghai city government promised cuts in rent and tax, faster approvals for construction projects and more subsidies for electric car purchases.

In energy markets, benchmark US crude rose 44 cents to $115.53 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price base for international oil, rose 48 cents to $116.04 a barrel in London.

The dollar rose to 127.34 yen from Friday’s 127.10 yen. The euro rose from $1.0733 to $1.0766.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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