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Global stocks are mixed as weak Chinese data eases rising oil prices

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US stocks are on track to reverse Tuesday’s losses as strong economic data and rising oil prices help ease investors’ pessimism about the pace of economic recovery.

Wall Street’s good S & P 500 index rose 0.7% in early trading Wednesday afternoon, while the technology-intensive Nasdaq Composite index rose 0.5%. Profit was widespread, with energy stocks and growth-sensitive sectors such as finance and industry rising the most.

Progress has been made as Federal Reserve data showed that US industrial production continued to increase in August, despite a sharp slowdown in growth due to the effects of hurricane Ida. Data separate from the Bureau of Labor Statistics also show the first monthly decline in import prices since October last year, supporting the view that the recent surge in inflation is temporary.

As a further sign of a slight shift to higher risk assets in the United States, yields on 10-year Treasuries, which rise as prices fall, rose 0.03 points to 1.312 percent.

US optimism contrasted with European and Asian markets. The STOXX 600 across Europe fell 0.8% to its lowest closing price in more than a month. The UK’s FTSE 100 fell 0.3%, France’s CAC 40 fell 1%, and Germany’s Xetra Dax fell 0.7%.

Sebastien Galy of Nordea Asset Management said:

“China’s retail sales were surprisingly weak against the backdrop of the feeling that China’s debt rise, partly due to the Covid-19 epidemic, holidays, and speculation in the real estate market, is nearing its end.” He added.

China’s retail sales in August increased 2.5% from the same month last year. Report On Wednesday, the country announced that it had addressed the outbreak of the Covid-19 delta variant. Economists surveyed by Reuters expected growth of 7%.

On Tuesday, debt-bearing Chinese homebuilder Evergrande hired a restructuring advisor, Liquidity crisis After monthly sales have almost halved from June to August.

According to a Bank of America survey of 258 asset managers, a net 13% forecasts global economic growth to rise, the lowest since April 2020.

U.S. retail sales declined Surprisingly sharp Due to the increase in cases of delta coronavirus, 1.1% from June to July.The airline also reports Demand is slowing Meanwhile, large employers from Microsoft to Ford Postponed plan Returning workers to the office.

Brent crude, an oil benchmark, rose 2.6% to $ 75.52 a barrel after hurricane Ida closed its US refinery and soaring natural gas prices fueled energy consumer speculation. Switching from gas to oil. Energy stocks listed on the S & P 500 rose 3.3%.

“As the recovery in global oil demand slows, if the US supply turmoil is actually a temporary buffer in prices, weather production will be slowed down,” said Nishant Boushan, an analyst at Listad Energy. Once the impact subsides, prices immediately take the risk of a downside. ”

In Asia, Hong Kong’s Hang Seng Index fell 1.8% in three consecutive down sessions, with losses in the last three months at around 12%. The CSI300 index for mainland China stocks fell 1%.

The dollar index, which measures the US currency against the other six, fell 0.1 percent.After UK inflation, Stirling rose 0.2% against the dollar to $ 1.3837 Jumping to 3.2% annually, Expectations are rising for the Bank of England to raise interest rates to record lows.

Global stocks are mixed as weak Chinese data eases rising oil prices

Source link Global stocks are mixed as weak Chinese data eases rising oil prices

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