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  • Global Markets Waver as Wall Street Hits New Highs and Oil Prices Plunge

    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

  • Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Currency traders pass by a screen displaying the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    Currency traders monitor screens near a display showing the KOSPI and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    The New York Stock Exchange is seen on Tuesday, June 18, 2024, in New York. Shares mostly rose in Europe and Asia after U.S. stocks hit new records, driven by gains in technology companies. (AP Photo/Peter Morgan)

    Asian markets were mixed on Wednesday following U.S. benchmarks setting more records amid signs of a slowing U.S. economy that hasn’t yet fallen into recession. U.S. futures were mixed, and oil prices remained steady.

    In Tokyo, the Nikkei 225 index increased by 0.2% to 38,575.54, as Japan’s May trade data showed a 13.5% rise in exports and a 9.5% increase in imports compared to the previous year, driven by higher prices and a weaker yen. Minutes from the Bank of Japan’s latest policy meeting revealed discussions about whether the yen’s weakness could drive inflation higher, with Governor Kazuo Ueda hinting at a potential rate hike depending on economic data.

    The Hang Seng in Hong Kong rose 2% to 18,264.51, while the Shanghai Composite index fell 0.3% to 3,020.03 after China’s securities regulator announced plans to enhance oversight of financial activities to mitigate risks. In Sydney, the S&P/ASX 200 dipped 0.2% to 7,764.30. South Korea’s Kospi surged 1% to 2,792.14. Taiwan’s Taiex climbed 1.8%, while Bangkok’s SET decreased by 0.1%.

    On Tuesday, the S&P 500 gained 0.3% to 5,487.03, marking its 31st record high this year. The Nasdaq composite rose by less than 0.1% to 17,862.23, and the Dow Jones Industrial Average increased by 0.2% to 38,834.86.

    Nvidia continued to be a standout performer, with its shares rising 3.5%, contributing significantly to the S&P 500’s gains. Nvidia’s chips are key in AI development, with demand skyrocketing, leading to tripling revenues each quarter and soaring profits. Its stock has surged nearly 174% this year, accounting for almost a third of the S&P 500’s gains through May. However, the heavy reliance on a few top performers could indicate a fragile market.

    Retail sales in May rose by 0.1%, below expectations, with April sales revised downward by 0.2%. March and February saw rises of 0.6% and 0.9%, respectively, while January sales fell by 1.1% due to adverse weather. The weaker data might suggest cracks in household spending, the main driver of the U.S. economy, as inflation remains high, particularly affecting lower-income households.

    Despite this, a Bank of America survey showed global fund managers’ optimism at its highest since autumn 2021, with significant stock allocations and less cash hoarding, and fewer predictions of a severe recession.

    In early Wednesday trading, U.S. benchmark crude oil remained steady at $80.71 per barrel, while Brent crude rose slightly to $85.35 per barrel. The dollar strengthened to 157.87 Japanese yen from 156.87 yen, and the euro slightly declined to $1.0737 from $1.0740.

    AP Business Writer Stan Choe contributed to this report.

    source: apnews.com