New York (AFP) – Global stock markets diverged Monday as investors tried to move on from upheaval fueled by US recession worries, with focus shifting to the week’s release of American inflation figures and other key data. After a painful collapse for equities a week ago, sparked by a big miss on US jobs creation, equities have bounced back and ended Friday on a healthy note. The gains were helped by a report showing fewer people than expected claimed US unemployment benefits, soothing fears that the world’s top economy was at risk of a recession.
The recovery extended into the new week, while the dollar was mixed against main rivals. “The stabilisation of sentiment is continuing, following the sell-off a week ago, as concerns about an American recession ease off a little,” noted Susannah Streeter, head of money and markets at Hargreaves Lansdown. “The latest inflation data in the US will be in sharp focus this week,” she added. The data could spark renewed volatility. “It feels that any number that falls outside of expectation could be the catalyst for an outsized move, in either direction,” said Trade Nation analyst David Morrison.
“It is worth considering that US Treasuries remain in demand, suggesting that investors are wary of taking on too much additional exposure to equities,” he added. Traders are seeking clues over the number of likely US interest rate cuts this year as inflation slows. Expectations are that the bank will lower borrowing costs 25 basis points next month, and at least once more before January, thanks to a string of data suggesting price rises have been brought under control.
Elsewhere, the yen weakened against the dollar following last week’s gyrations. Oil prices rose on supply risks due to possible spiraling conflict in the Middle East and owing to an escalation of tensions in major crude producer Russia. The White House warned Monday that a “significant set of attacks” by Iran and its proxies against Israel was possible as soon as this week, after top leaders of Hezbollah and Hamas were assassinated in late July. In Russia, two regions bordering Ukraine ordered more evacuations as Moscow battled to contain an unprecedented push onto its territory.
– Key figures around 2025 GMT –
New York – Dow: DOWN 0.4 percent at 39,357.01 points (close)
New York – S&P 500: FLAT at 5,344.39 (close)
New York – Nasdaq Composite: UP 0.2 percent at 16,780.61 (close)
London – FTSE 100: UP 0.5 percent at 8,210.25 (close)
Paris – CAC 40: DOWN 0.3 percent at 7,250.67 (close)
Frankfurt – DAX: FLAT at 17,726.47 (close)
EURO STOXX 50: DOWN 0.1 percent at 4,671.88 (close)
Hong Kong – Hang Seng Index: UP 0.1 percent at 17,111.65 (close)
Shanghai – Composite: DOWN 0.1 percent at 2,858.20 (close)
Tokyo – Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.0931 from $1.0921 on Friday
Pound/dollar: UP at $1.2766 from $1.2760
Dollar/yen: UP at 147.26 yen from 146.63 yen
Euro/pound: UP at 85.61 at 85.57 pence
Brent North Sea Crude: UP 3.3 percent at $82.30 per barrel
West Texas Intermediate: UP 4.2 percent at $80.06 per barrel
© 2024 AFP
