Global Markets Waver as Wall Street Hits New Highs and Oil Prices Plunge
Global stock markets showed mixed performance on Tuesday as Wall Street continued to push to new record highs, while concerns over China’s economic slowdown weighed on Asian equities. Meanwhile, oil prices fell sharply, losing more than $3 per barrel amid concerns of oversupply.
European Markets: Mixed Signals
Germany’s DAX rose 0.3% to 19,564.16, reflecting some market optimism. However, other major European indices struggled:
The CAC 40 in Paris dropped 0.7% to 7,547.36.
The FTSE 100 in London declined by 0.5% to 8,253.07.
Futures for the S&P 500 and the Dow Jones Industrial Average were down slightly by less than 0.1%, indicating a potential pause in Wall Street’s rally.
Asia Struggles Amid Weak Chinese Data
Chinese markets extended losses following disappointing export data for September, signaling further economic weakness.
The Shanghai Composite fell 2.5% to 3,201.29.
Hong Kong’s Hang Seng index plunged 3.7% to 20,318.79.
Investor sentiment remains fragile as markets await clarity on China’s potential fiscal stimulus. “The lack of commitment from Chinese authorities continues to weigh on risk-taking in equities,” noted Yeap Jun Rong of IG.
Despite these setbacks, other Asian markets performed better:
Japan’s Nikkei 225 gained 0.8% to 39,910.55.
South Korea’s Kospi rose 0.4% to 2,633.45.
Australia’s S&P/ASX 200 advanced 0.8% to 8,318.40.
Oil Prices Tumble Amid Supply Concerns
Oil prices plunged as traders balanced geopolitical risks in the Middle East with concerns about oversupply.
U.S. crude fell $3.73 to $70.10 per barrel.
Brent crude dropped $3.79 to $73.67 per barrel.
Stephen Innes of SPI Asset Management commented that despite geopolitical tensions, the primary challenge for the oil market is oversupply, particularly as China’s demand growth slows from 600,000 barrels per day to 200,000.
Wall Street’s Record-Setting Run
Wall Street continued its upward trend on Monday, fueled by optimism over cooling interest rates and better-than-expected economic data.
The S&P 500 climbed 0.8% to a new high of 5,859.85.
The Dow Jones Industrial Average added 201 points, or 0.5%, to 43,065.22.
The Nasdaq Composite rose 0.9% to 18,502.69.
The gains come as the Federal Reserve shifts focus from controlling inflation to maintaining economic stability, raising hopes for a “soft landing” that avoids a recession.
Focus Shifts to Corporate Earnings
With limited economic reports this week, investors are turning their attention to corporate earnings. Bank of America, Johnson & Johnson, and UnitedHealth Group will release results on Tuesday, followed by Netflix, American Express, and Procter & Gamble later in the week. Analysts expect S&P 500 companies to report a 4.1% increase in earnings per share, marking the fifth consecutive quarter of growth.
Currency Movements
In currency markets, the U.S. dollar slipped to 148.89 Japanese yen from 149.83 yen, while the euro edged higher to $1.0915 from $1.0911.
Source : Swifteradio.com
