Sunday, February 5, 2023

World stock markets fall after Wall St hits record again

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

London changed little while Frankfurt, Shanghai and Hong Kong advanced. Tokyo and Sydney declined.

On Wall Street, the benchmark S&P 500 index’s future was down less than 0.1%.

US stocks were boosted on Monday by gains in construction-related stocks after Congress approved a $1 trillion infrastructure bill last week.

Meanwhile, Federal Reserve Vice President Richard Clarida said the conditions for raising interest rates may not be met until the end of next year. Traders worry that a rise in inflation could prompt central banks to withdraw the stimulus that helped prop up stock prices.

“Investors will be on the lookout for any clues that indicate central banks’ taper process and adjustments to rate hike expectations,” ActiveTrades’ Anderson Alves said in a report.

In early trade, the FTSE 100 in London closed 0.1% lower at 7,298.82 and in Frankfurt the DAX was up 0.1% at 16,070.01. The CAC 40 in Paris closed down 0.1% at 7,042.55.

On Wall Street, the Dow Jones Industrial Average was down 0.1%.

The S&P 500 rose 0.1% on Monday. The Dow also set records with gains of 0.3% and the Nasdaq Composite up 0.1%.

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

In Seoul, the Kospi closed 0.1% lower at 2,962.46, while Sydney’s S&P-ASX 200 lost 0.2% to 7,434.20.

India’s Sensex fell 0.3% to 60,353.72. New Zealand, Bangkok and Jakarta advanced while Singapore declined.

Also on Tuesday, Japan’s government reported that wage growth fell to a three-month drop of 0.2% in September from a year earlier.

On Wall Street, steelmakers and other companies that stand to benefit from infrastructure spending also rallied following Congress’s passage of the infrastructure bill.

Nucor rose 3.6%. Crushed stone and concrete selling Vulcan Materials rose 4.9%. Equipment maker Caterpillar rose 4.1%.

Strong corporate profits have calmed investor concerns about inflation.

Advanced Micro Devices jumped 10.1% for the biggest gainer in the S&P 500 after Facebook parent company Meta announced it would use AMD chips in its data centers. Chipmaker Nvidia rose 3.5%.

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

In energy markets, benchmark US crude oil 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, the price base of international oils, rose 37 cents to $83.80 a barrel in London. It rose 69 cents to $83.43 a barrel in the previous session.

The dollar fell to 112.97 yen from Monday’s 113.24 yen. The euro was little changed at $1.1588.


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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