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World shares mostly gain in calm trading as more tests for markets loom

World shares mostly gain in calm trading as more tests for markets loom


This article was originally published on Washington Times - World. You can read the original article HERE

BANGKOK — World shares were mostly higher in calm trading on Monday ahead of big reports this week on the state of the U.S. economy.

Germany’s DAX picked up less than 0.1% to 17,731.40 and the CAC 40 in Paris edged 0.2% lower, to 7,257.94. In London, the FTSE 100 gained 0.5% to 8,206.25.

The future for the S&P 500 was up 0.2% and that for the Dow Jones Industrial Average was little changed.



Aside from reports on inflation, this week will also bring updates on retail sales and unemployment. Price pressures have abated, economists say, as shoppers look for cheaper alternative products and services, returning to pre-pandemic ways.

In Asian trading on Monday, Hong Kong’s Hang Seng edged 0.1% higher, to 17,111.65 and the Shanghai Composite index slipped 0.1% to 2,858.20.

Markets in Tokyo and Bangkok were closed for holidays.

In Seoul, the Kospi jumped 1.2% to 2,618.30, as shares in Samsung Electronics gained 1.1%, tracking advances in Big Tech companies late last week. Taiwan’s Taiex advanced 1.4%, as computer chip giant Taiwan Semiconductor Manufacturing Co. added 0.6% and electronics maker Hon Hai Precision Electronics, also known as Foxconn, surged 4.5%.

Australia’s S&P/ASX 200 rose 0.5% to 7,813.70.

Last week started with a jolt, as markets were slammed by heavy selling triggered by concerns over whether the U.S. economy may be slowing too quickly. Japanese stocks endured their worst percentage loss since 1987’s Black Monday. But it ended on a calmer note after more big U.S. companies joined those reporting better profit for the spring than analysts had expected.

“The recent run in stronger-than-expected U.S. economic data has aided to push back against recession concerns, with rate expectations now suggesting that the U.S. Federal Reserve (Fed) may retain more flexibility in its policy easing process as compared to one that is being forced by higher economic risks,” Yeap Jun Rong of IG said in a commentary.

On Friday, the S&P 500 rose 0.5%, coming off its best day since 2022 and trimming its loss after the week’s wild ride to less than 0.1%.

The Dow Jones Industrial Average rose 0.1% and the Nasdaq composite added 0.5%.

The most recent report on jobs in the U.S. raised hopes for the economy after the prior week’s frightened investors. Households at the lower end of the income spectrum have been struggling for a while to keep up with still-rising prices, but economists expect the report to show a return to growth after a stall in retail spending during June.

A worst-case scenario would be if Tuesday’s and Wednesday’s inflation reports show higher-than-expected rises in prices at the wholesale and consumer levels, while the week’s other reports show a sharp weakening of the economy.

Worries remain about the strength of the U.S. economy. They dragged Treasury yields lower Friday as investors sought safer places for their money and expectations built for deeper cuts to interest rates coming from the Federal Reserve. The yield on the 10-year Treasury fell to 3.94% from 3.99% late Thursday.

“Market pricing suggests that traders remain nervous about the steady-as-she-goes assessment of policy rates, and the volatility of last week perhaps serves as a warning that we could be only one or two bad prints away from further turmoil,” Benjamin Picton, a senior market strategist at Rabobank, said in a report.

In other dealings early Monday, U.S. benchmark crude oil rebounded, gaining 77 cents to $77.61 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 64 cents to $80.30 per barrel.

The U.S. dollar rose to 147.40 Japanese yen from 146.63 yen. The euro climbed to $1.0926 from $1.0919.

Copyright © 2024 The Washington Times, LLC.

This article was originally published by Washington Times - World. We only curate news from sources that align with the core values of our intended conservative audience. If you like the news you read here we encourage you to utilize the original sources for even more great news and opinions you can trust!

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