As investors anticipated new information on U.S. inflation and China’s most recent economic data, global stock prices were mainly up on Monday.
In Shanghai, Paris, Frankfurt, and London, benchmarks increased while falling in Hong Kong and Tokyo. Prices for oil fluctuated.
Concerns that inflation in the US and other major economies may not be falling as much as hoped for have increased in response to a recent spike in oil prices. As a result, the Federal Reserve and other central banks might decide to maintain higher interest rates for longer, which would lower the value of stocks and other investments.
The CAC 40 in Paris increased by 0.9% to 7,308.46 and the DAX in Germany increased by 0.7% to 15,846.97. The FTSE 100 in London increased 0.8% to 7,539.30.
The S&P 500 future increased by 0.4%, while the Dow Jones Industrial Average’s future increased by 0.3%.
China’s own inflation figures showed a tiny increase over the weekend, which may indicate that deflationary forces, which are thought to be a symptom of weakness in the country’s weakening economy, are lessening. Later this week, the government is expected to provide data on August industrial output.
As policy support fuels a small recovery in China’s economic momentum, we expect inflation to rebound further over the upcoming months, according to a column by Capital Economics’ Zichun Huang.
Hong Kong’s Hang Seng index fell 0.6% to 18,087.79, while the Shanghai Composite index rose 0.8% to 3,142.78.
The Hong Kong-listed shares of Chinese e-commerce giant Alibaba fell more than 2.6% after it announced that Daniel Zhang, its previous CEO, would take over running an investment fund in place of leading the company’s cloud computing division.
Following setbacks from governmental crackdowns on the technology and finance industries, the corporation has undergone restructuring.
The Kospi in Seoul increased 0.4% to 2,556.88, while the Nikkei 225 in Tokyo fell 0.4% to 32,467.76.
The S&P/ASX 200 in Australia increased 0.5% to 7,192.30.
China will provide additional statistics this week, while the United States will provide an update on consumer prices on Wednesday. According to economists’ predictions, consumer prices rose 3.6% in August compared to the same month last year.
Despite a little increase in Wall Street stocks on Friday, markets nevertheless concluded the week with their first losing week in the previous three.
The Labour Day holiday shortened the week, which saw the S&P 500 gain 0.1% but lose 1.3% overall.
The Nasdaq composite increased by 0.1% and the Dow Jones Industrial Average increased by 0.2%.
Kroger increased 3.1% as its latest quarter’s performance beat analysts’ estimates, although its revenue lagged behind.
As they work to win regulatory permission for their proposed merger, the firm and Albertsons announced a deal to sell some of their joint venture locations, private-label products, and other assets. Additionally, Kroger disclosed a settlement deal under which it will shell out more than $1.2 billion to resolve the majority of opioid-related lawsuits that states, local governments, and Native American tribes might file against it.
Bond market yields remained largely stable, which helped to settle Wall Street.
The yield on the 10-year Treasury was 4.29 percent early on Monday, up from 4.2% late on Friday. The two-year Treasury yield increased from 4.97% to 5.00%, more closely reflecting expectations for the Fed.
Since reaching a peak of over 9% last summer, inflation has generally been declining, but there is concern that the final decline to the Fed’s goal inflation rate of 2% may be the most challenging.
The economy should slow down and the job market should suffer as a result of high interest rates, which should ultimately assist to reduce inflation. The highest rates in more than 20 years, however, have not yet had a significant impact on that. Threatening to do so may force the Fed to increase rates once more or, at the very least, keep them high for longer than anticipated by investors.
Early on Monday, computerised trading on the New York Mercantile Exchange showed that U.S. benchmark oil was down 20 cents at $87.31 per barrel. On Friday, it increased 64 cents to $87.51 per barrel.
The benchmark price for international trade, Brent crude, increased 11 cents to $90.76 per barrel.
After Bank of Japan Governor Kazuo Ueda apparently alluded to a potential change in Japan’s long-standing near-zero interest rate policy, the U.S. dollar fell to 146.08 Japanese yen from 146.99 yen. From $1.0714 to $1.0730, the euro increased.