World stock, Wall Street markets for Tuesday

Bangkok –

European stocks fell Tuesday after a mixed session in Asia after Wall Street took a breather from selling pressure from concerns over inflation and interest rates.

US futures fell and oil prices rose. Benchmarks rose in Tokyo, Seoul and Shanghai, but fell in London, Paris and Frankfurt.

Analysts are making predictions about how high the Federal Reserve will set interest rates and how long they will hold them to curb inflation, which has not fallen as much as expected. , investors are nervous.

Economies around the world have remained more resilient than feared, with China easing restrictions to fight the business-damaging coronavirus and Europe averting a worst-case energy crisis.

SPI Asset Management’s Steven Innes said in a report, “As we move into the ‘Turnaround Tuesday’, investors may see a temporary drop in January inflation as the economy adjusts to a post-pandemic world. “We’re debating whether it was just a temporary uptick.” “The post-pandemic era continues to bring about unusual macroeconomic patterns.”

Germany’s DAX fell 0.5% to 15,296.37 and Paris’ CAC 40 fell 0.6% to 7,255.12. The UK FTSE 100 fell 0.5% to 7,894.13. S&P 500 and Dow Jones Industrial Average futures were down 0.3%.

In Asian trading, Tokyo’s Nikkei 225 index rose 0.1% to 27,445.56 while Seoul’s Kospi rose 0.4% to 2,412.85.

Hong Kong’s Hang Seng Index fell 0.8% to 19,785.94 while the Shanghai Composite Index rose 0.7% to 3,279.61. Australia’s S&P/ASX 200 rose his 0.5% to 7,258.40.

Mumbai shares fell 0.6% and Bangkok’s SET index fell 0.4%.

Equities struggled in February after a strong start to the year. Strong economic data helps allay concerns that a recession is imminent given the impact of high borrowing costs on consumer and business spending.

But that likely means a prolonged period of rising interest rates. The rise in interest rate expectations has been most noticeable in the bond market, where yields have surged in recent weeks.

Earlier, analysts thought the Fed could ease soon. Currently, interest rates are expected to exceed 5.25% he. The Fed’s key overnight rate has ranged from virtually zero early last year to 4.50% now to his 4.75%.

The S&P 500 rose 0.3% on Monday while the Dow Jones Industrial Average rose 0.2%. The Nasdaq Composite rose 0.6%.

Despite fears that interest rates will be higher than expected, the S&P 500 is still up 3.7% year-to-date, and shoppers are still continuing to shop in stores. Both could put upward pressure on inflation.

Most companies have already reported results for the last three months of 2022. Among the dozens of S&P 500 companies slated to report this week are Advance Auto Parts, Kroger, and Target.

Overall, the earnings reporting season has been lackluster. The S&P 500 firm is set to report its first decline since the summer of 2020, from his one-year-old, according to FactSet.

In other trading on Tuesday, US benchmark crude rose 65 cents to $76.33 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the price benchmark for international trading, rose 62 cents to $82.66 a barrel.

US dollar rose to 136.77 yen from 136.20 yen. The euro remained unchanged at $1.0609.

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