Advertisement

Global stocks mixed as investors await US inflation data

02:54 PM Sep 14, 2021 | PTI

Global stock markets were mixed Tuesday as investors waited for an update on US inflation that has been stronger than expected.

London and Shanghai declined while Frankfurt and Tokyo advanced.

Advertisement
Advertisement

Wall Street futures were higher a day after the benchmark S&P 500 index closed higher, snapping a five-day losing streak.

Advertisement

Investors were watching for August inflation data. Headline inflation stands above 5 percent as consumer and business activity revives.

The price spike has prompted fears the Federal Reserve might feel pressure to roll back easy credit and other stimulus that boosts share prices. But Fed officials have indicated they believe the surge is temporary and they will keep interest rates low until a recovery is established.

“Risks may be tilted to the upside,” Eugene Leow of DBS said in a report. “Excessively loose monetary policy may not increase output or employment but may worsen price pressures and distort market signals further.”

In early trading, the FTSE 100 in London lost 0.4 percent to 7,043.76 while Frankfurt's DAX gained less than 0.1 percent to 15,713.20. The CAC 40 in Paris shed 0.7 percent to 6,630.38.

On Wall Street, futures for the S&P 500 and the Dow Jones Industrial Average were up less than 0.1 percent.

On Monday, the S&P 500 rose 0.2 percent, boosted by bank, energy and communications stocks. The S&P 500 was coming off its biggest weekly drop in three months.

The Dow rose 0.8 percent while the Nasdaq composite slipped 0.1 percent.

Trading on Wall Street is choppy as investors try to figure out how the economy will develop as the spread of the coronavirus's more contagious delta variant and measures to contain it hurt consumer spending and job growth.

US retail sales in August are due to be reported Thursday.

In Asia, the Shanghai Composite Index fell 1.4 percent to 3,662.60 while the Nikkei 225 in Tokyo gained 0.7 percent to 30,670.10. The Hang Seng in Hong Kong lost 1.2 percent to 25,504.74.

The Kospi in Seoul rose 0.7 percent to 3,148.83 while Sydney's S&P-ASX 200 advanced 0.2 percent to 7,437.30.

India's Sensex gained 0.2 percent to 58,283.75. New Zealand and Bangkok retreated while Singapore and Jakarta gained.

In energy markets, benchmark US crude gained 61 cents to $71.06 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 73 cents on Monday to $70.45. Brent crude, used to price international oils, advanced 67 cents to $74.18 per barrel in London. It added 59 cents the previous session to $73.51 a barrel.

The dollar was little-changed at 110.01 yen. The euro advanced to $1.1824 from $1.1804.

(To view our epaper please Read Now. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Advertisement