Global stocks mostly higher ahead of US data
Benchmarks rose in Paris, London, Frankfurt, Hong Kong and Shanghai, but fell in Tokyo and Sydney
File photo.
Bangkok Shares were mostly higher in Europe and Asia on Monday as investors waited for an update on US inflationafter the latest jobs data conveyed mixed signals about the state of the economy.
Benchmarks rose in Paris, London, Frankfurt, Hong Kong and Shanghai. Tokyo and Sydney declined. US futures and oil prices also fell. US consumer prices for June are due out on Wednesday, with forecasts calling for an annual increase of just over 3 per cent compared with 4 per cent the month before. Germany’s DAX gained 0.3 per cent early Monday to 15,645.48, while the CAC 40 in Paris rose 0.4 per cent to 7,138.87. Britain’s FTSE 100 inched 0.2 per cent higher to 7,268.25. The future for the S&P 500 was down 0.2 per cent while that for the Dow Jones Industrial Average edged less than 0.1 per cent lower. On Friday, the S&P 500 lost 0.3 per cent while the Dow gave up 0.6 per cent. The Nasdaq composite edged 0.1 per cent lower and the Russell 2000 index of smaller stocks rose 1.2 per cent.
China reported Monday that producer prices fell 5.4 per cent in June from a year earlier, down from a 4.6 per cent drop in May, as growth in the US and Europe continued to taper off under a barrage of interest rate hikes meant to snuff out high inflation. Consumer price inflation was flat, also suggesting weakening of demand as activity in the world’s second largest economy slows. China’s economy has slowed faster than hoped for after an initial surge in growth as the country bounced back from disruptions from the Covid-19 pandemic.
“The releases of the latest indicators from China did little to quell concerns about the lethargic state of economic activity,” Tim Waterer of KCM Trade said in a report.
He added that “with deflationary troubles brewing for the world’s second largest economy, one wonders how long it will be before the central bank steps in to provide something more meaningful on the stimulus side.” Weak data tends to lead Chinese investors to anticipate such market support. Hong Kong’s Hang Seng gained 0.6 per cent to 18,479.72 and the Shanghai Composite index edged 0.2 per cent higher to 3,203.70. Tokyo’s Nikkei 225 slipped 0.6 per cent to 32,189.73, while the Kospi in Seoul shed 0.2 per cent to 2,520.70. Australia’s S&P/ASX 200 declined 0.5 per cent to 7,004.00.
