Sunday, October 24, 2021

World stocks stabilize near low as inflation eases

MILAN – World stocks held steady near lows on Tuesday as rising oil prices ease inflationary pressures, while the dollar strengthened on Friday ahead of US payrolls data that hailed the Federal Reserve’s next move. was seen.

MSCI’s gauge of global shares was down 0.1 per cent by 0.823 GMT, but was higher than a three-month low during Asian trade.

European shares rose 0.3 percent as rising bank stocks and an encouraging earnings update from chipmaker Infineon calmed nerves after a tech-fueled sell-off on Monday.

Wall Street was also set for a rebound with futures on the tech-heavy Nasdaq up 0.3 percent and S&P 500 futures 0.2 percent higher.

Asian shares fell for the third day in a row, with heavy losses in the United States, where investors gave up on Big Tech as Facebook was hit by a nearly six-hour outage.

Facebook’s Frankfurt-listed stock rose 2.6 percent as its services went back online.

But investors remained cautious, on concerns that rising energy prices and supply chain disruptions could derail economic recovery, as the US Federal Reserve moves closer to easing its massive stimulus.

“More than anything else, we are concerned about the impact of the impasse on the general indices, which is enormous,” said Giuseppe Cerselle, fund manager at Anthelia.

“We certainly prefer energy and materials, and we’re concerned about stocks with high multiples that know the price—what’s driving earnings growth (see Nasdaq),” he said.

Oil prices rose to their highest level in at least three years, boosting gains from the previous session that came after the world’s major oil producers decided to put a cap on crude oil supplies.

Read Also:  Asian stocks fall on rising energy costs, fan inflation fears

OPEC+ on Monday confirmed that it will stick to its current production policy as demand for petroleum products has picked up, despite pressure from some countries to give a big boost to production.

Brent crude rose 0.6 percent to $81.75 a barrel, while US oil rose 0.4 percent to $77.94.

Market focus in Asia was on whether property developer China Evergrande would offer any relief to investors looking for signs of property settlement.

Trading in shares of the world’s largest indebted developer was halted on Monday, but other Chinese property developers were battling a rating downgrade due to concerns about their ability to repay debt.

The US dollar rallied back toward a year high versus key peers ahead of a major payrolls report at the end of the week, which could boost the case for the Fed to introduce stimulus stimulus as soon as next month.

“A positive number, which in this case would be in the region of 480,000 or higher, would give the Fed the final reason needed to begin tapering off its asset purchase program,” said ActiveTrades analyst Ricardo Evangelista. The dollar index, which tracks the greenback versus a basket of six currencies, was last up 0.1 per cent at 93.9, while the euro fell 0.16 per cent to $1.1602.

Gains in the dollar weighed on gold prices, which fell 0.7 per cent to $1,757 an ounce on Monday after hitting an all-time high since September 23.

by Danilo Masoni and Anshuman Daga

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This News Originally From – The Epoch Times

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