Saturday, March 25, 2023

World stocks at lower levels ahead of US 1Q economic growth report

BANGKOK ( Associated Press) – Shares in Europe and Asia fell on Wednesday, while oil prices were lower ahead of the latest update on US economic developments.

The Commerce Department was due to release a report on first-quarter GDP later in the day. Investors worried about uncertainty over inflation, rising interest rates and the prospect of a recession were also awaiting comments from central bank leaders, including Fed Chair Jerome Powell.

Germany’s DAX was down 1.2% at 13,071.73, while the CAC 40 in Paris was almost unchanged at 6,049.31. Britain’s FTSE 100 closed 0.5% lower at 7,287.26. Dow Industrials and S&P 500 futures were up 0.1%.

On Tuesday, the S&P 500 fell 2%, the Dow Jones Industrial Average fell 1.6%, and the Nasdaq fell 3%, after a survey showed lower-than-expected consumer confidence in the US, mainly due to rising prices.

US consumer confidence reading weaker than expected Highlighting the deteriorating consumer expectations due to persistently high inflation.

“All sectors, countries, industries and stocks are being printed in red with broad strokes. It doesn’t look pretty, and trading bad news is good news in theory could end in tears,” Stephen Innes of SPI Asset Management said in a report.

Tokyo’s Nikkei 225 index fell 0.9% to 26,804.60, while Seoul’s Kospi fell 0.8% to 2,377.99. The Hang Seng in Hong Kong fell 1.9% to 21,996.89. The Shanghai Composite Index ended 1.4% lower at 3,361.52.

Australia’s S&P/ASX 200 closed 0.9% down at 6,700.20. Bangkok’s SET fell 0.5%, while India’s Sensex remained virtually unchanged.

The conference board said on Tuesday that its consumer confidence index fell to its lowest level in more than a year in June, a result much weaker than economists expected.

Investors face a broad list of concerns centered on rising inflation, shrinking businesses and consumers. Supply chain problems that are at the root of rising inflation have been worsened by an increase in COVID-19-related restrictions in China over the past several months.

Traders have increased prices on everything from food and drink to clothes. Russia’s invasion of Ukraine In February, raising energy prices and pushing petrol prices to record highs put even more pressure on consumers.

Consumers were already spending from goods to services as the economy recovered from the effects of the pandemic, but sharp inflationary pressures have prompted a sharp shift away from discretionary goods like electronics to necessities.

Central banks are raising rates to try to tame inflation after years of keeping rates down to help economic growth, but investors fear they may go too far and actually push the economy into recession. can push.

Wall Street is gearing up for the next round of corporate earnings in the next few weeks. They will help paint a clearer picture of how companies are dealing with rising costs and pressure from consumers to cut some spending.

Wednesdays in other business:

The yield on the 10-year Treasury note, which helps determine mortgage rates, declined from 3.19% to 3.15%.

US benchmark crude oil slipped 14 cents to $111.62 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude fell 21 cents to $113.59 a barrel.

The dollar rose to 136.17 Japanese yen from 136.12 yen late Tuesday. The euro weakened from $1.0522 to $1.0513.

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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