Following a decline in global stock markets, Wall Street is expected to rise. In premarket trading on Tuesday, Wall Street pointed to gains as global stock markets fell, with Hong Kong down nearly 6% and Shanghai down 5%. Oil prices fell about 8% as Chinese industry and commerce were threatened by virus lockdowns and rising COVID cases. Despite the release of statistics showing strong increases in retail sales, industrial production and Chinese investment in January-February, the sell-off accelerated late in the session. It came after China’s central bank decided not to lower interest rates in order to boost economic development. Dow Industrials futures rose 0.3%, while S&P 500 futures rose 0.4%.
The Shanghai Composite fell 5% to 3,063.97. “Fears continue to plague equity markets that shutdowns could spread, severely impacting China’s growth,” Oanda’s Jeffrey Halley said in a commentary. Tokyo’s Nikkei 225 rose 0.2% to 25,346.48, while Seoul’s Kospi fell 0.9% to 2,621.53. Australia’s S&P/ASX 200 slipped 0.7% to 7,097.40 and shares also fell in Taiwan and Bangkok. Oil prices have fallen this week, easing the inflationary pressure sweeping the world, with U.S. crude falling below $100 a barrel after hitting $130 last week. US crude lost between $8.01 and $95 a barrel in electronic trading on the New York Mercantile Exchange. It fell from $6.32 to $103.01 on Monday.
Oil and other commodity prices fell as Russian forces pounded the Ukrainian capital ahead of another round of talks between the two sides. Germany’s DAX and CAC 40 in Paris both fell 1.2%, while Britain’s FTSE 100 fell 0.8%. Worries over the war in Ukraine and an upcoming Federal Reserve meeting on interest rates are keeping markets on edge. Uncertainty over whether persistently high inflation could stifle the global post-pandemic recovery has caused the prices of oil, wheat and other commodities produced in the region to fluctuate, leading to daily and hourly reversals. hourly in the markets. “Markets seem to have tampered with a strange mix of hope, fear and uncertainty,” Mizuho Bank said in a comment. Shares in Hong Kong fell to near six-year lows after neighboring Shenzhen was ordered to shut down to battle China’s worst COVID-19 outbreak in two years. The Hang Seng index lost 5.7% to 18,415.08 after falling more than 6%.
Brent crude, the standard for international oil pricing, fell $7.79 to $99.11 a barrel. In other developments, the London Metal Exchange said nickel trading would resume on Wednesday, just over a week after it was suspended when the metal’s price soared to over $100,000 a tonne. The announcement followed a notice from Tsingshan Holding Group, a Chinese metals giant, that it had reached an agreement with its creditors on a “standstill agreement” so that banks would not make margin calls. or would not close their positions against him while the company resolves its nickel margin and settlement requirements. Russia is the world’s third largest producer of nickel. Its price and that of many other commodities rose on speculation of possible supply disruptions as Russia faces widening economic sanctions following its invasion of Ukraine. Investors were already worried before the start of the war because central banks around the world are preparing to end the stimulus measures they injected into the global economy after the outbreak of the pandemic.
The Federal Reserve is expected to raise its main short-term interest rate by a quarter of a percentage point on Wednesday in the first such increase since 2018, knocking the federal funds rate from its record low of near zero. The challenge is to raise rates quickly and high enough to fight inflation without overdoing it and causing a recession. On Monday, the S&P 500 gave up an early gain and closed down 0.7% while the Dow Jones Industrial Average was essentially unchanged. The Nasdaq fell 2% and the Russell 2000 Index slipped 1.9%. In currency trading, the dollar fell to 117.99 Japanese yen from 118.18 yen on Monday night. The euro fell from $1.0941 to $1.0980.
Summary of news:
- After a fall in global stock markets, Wall Street is expected to rise
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