Bangkok – Stocks rose mostly in Europe and Asia on Monday after Wall Street wrapped up another volatile week marked by fears over the outlook for inflation and interest rates.
Germany’s DAX rose 0.1% to 15,494.14 in early trading, while Paris’ CAC 40 also rose 0.1% to 7,354.01. The UK’s FTSE 100 rose 0.2% to 8,016.05. S&P 500 and Dow Jones Industrial Average futures were down 0.1%.
US markets were closed on Monday for a holiday.
China kept its benchmark lending rate, the loan prime rate, unchanged as expected. The 1-year interest rate remains at 3.65% and the 5-year interest rate is 4.3%.
In Asian trading, Hong Kong’s Hang Seng Index rose 0.8% to 20,886.96 and the Shanghai Composite Index rose 2.1% to 3,290.34. Tokyo’s Nikkei 225 rose 0.1% to 27,531.94.
India’s Sensex fell 0.5% to 60,702.28. South Korea’s Kospi rose 0.2% to 2,455.12 and Australia’s S&P/ASX 200 rose 0.1% to 7,351.50. Stocks in Southeast Asian markets fell, with the exception of Bangkok, where the SET rose 0.4%.
Recent data have revived concerns that US inflation is not falling as quickly as hoped.It shook hope that the Federal Reserve might ease it interest rate hike It keeps the economy from going into recession.
This added to the turmoil on Wall Street after a solid rally early in the year.
Chief Executive Officer Clifford Bennett said: “There hasn’t been a lot of headline news, but deep down in every trader’s mind, this whole ‘high inflation/Fed rate hike’ scenario is actually what many people think. “There was an idea that it might not end as quickly as we’d like.” “The problem may not be over yet,” said an economist at ACY Securities in a comment.
The S&P fell 0.3% on Friday while the Dow Jones Industrial Average rose 0.4%. The Nasdaq Composite fell 0.6%.
Recent reports have shown better-than-expected strength in everything from the job market to the labor market. retail sales Concerns are growing that it will affect inflation itself and force the Federal Reserve to tighten interest rates. Investors are reassured that this added resilience could help the economy avoid a worst-case recession.
Employment remains plentiful and shoppers continue to spend to support the most important part of the economy: consumer spending. That keeps the S&P 500 index up 6.2% year-to-date.
The concern is that if inflation turns out to be stronger than expected, the Fed could be even more aggressive than markets are prepared. The move was most evident in bond markets, where yields surged this month on hopes of Fed tightening.
This week, Thursday’s updated US economic growth forecast for October-December offers more insight into how businesses and consumers are living. Forecasts are for growth to slow to 2.8% or 2.9% from 3.2% in the previous quarter.
In other trading on Monday, US benchmark crude rose 74 cents to $77.29 a barrel in electronic trading on the New York Mercantile Exchange. It fell $2.19 to $76.55 a barrel on Friday.
Brent crude, the price benchmark for international trading, rose 84 cents to $83.84 a barrel.
The US dollar fell from 134.28 yen to 134.27 yen. The euro rose from $1.0681 to $1.0690.
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https://www.local10.com/business/2023/02/20/asian-shares-mostly-higher-as-inflation-worries-dog-wall-st/ Global stocks nearly rise as Wall Street dog inflation worries