Global stocks rebound as Wall St futures gain after holiday
BEIJING Global stocks rebounded Tuesday after Wall Street futures moved higher following a U.S. holiday.
London opened higher. Tokyo, Hong Kong, Sydney and Melbourne gained while Shanghai fell. Oil prices climbed above $110 per barrel.
Wall Street’s benchmark S&P 500 Index was up 2% after the three-day weekend.
” The modest equity market recovery continues to Asia, thanks in part to U.S. futures grinding higher,” Jeffrey Halley from Oanda stated in a report.
In early trading, the FTSE 100 in London advanced 0.7% to 7,168.48. The DAX in Frankfurt added 1.3% to 13,439. 23 and the CAC 40 in Paris was 1.9% higher at 6,030.80.
The future for the Dow Jones Industrial Average was 1.7% better on Wall Street.
On Friday, the S&P rose 0.2% but ended the week down 5.8% for its tenth drop in 11 weeks. This was the largest weekly drop since March 2020, the beginning of the global pandemic.
The Dow dropped 0.1%, while the Nasdaq composite gained 1.4%.
In Asia, the Nikkei 225 in Tokyo added 1.8% to 26,246. 31 while the Shanghai Composite Index lost 0.3% to 3,306.72. Hong Kong’s Hang Seng advanced 1.9% to 21,559.59.
The Kospi in Seoul was 0.7% higher at 2,408. 93 and Sydney’s S&P-ASX 200 rose 1.4% to 6,523.80.
India’s Sensex opened up 1.9% at 52,569.30. New Zealand and Southeast Asian markets saw gains.
Investors are concerned that efforts by the U.S. central banks to reduce inflation, which is at an all-time high of four decades, could slow global economic growth.
Japan, China, and China are the two largest economies. They have resisted rate hikes. China’s central bank kept its benchmark rates the same on Monday. Despite concerns that the weakening yen could be a problem, the Bank of Japan maintained its policy of near zero interest rates last week.
The S&P 500 has fallen by more than 20% from its Jan. 3 peak, putting it in what traders call a bear market.
Investors will be looking for clues about Fed plans for additional rate hikes, when Chair Jerome Powell addresses congressional committees this week.
On Monday the European stock exchange s advanced. Shanghai, Tokyo, and Seoul all declined.
In energy markets, benchmark U.S. crude jumped $2. 49 to $110. 48 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, which is the international standard for oil trading, gained $1. 70 to $115. 83 per barrel in London.
The dollar edged up to 135. 31 yen from Monday’s 135 yen. The euro rose to $1. 0580 from $1.0491.
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