Global stock markets drop after Wall St hits record high again
BEIJING – Global stock markets were mixed on Tuesday after Wall Street hit a record for an eighth day.
London opened little change while Frankfurt, Shanghai and Hong Kong advanced. Tokyo and Sydney declined.
On Wall Street, the future of the benchmark S&P 500 was up less than 0.1%.
US stocks were boosted on Monday by gains in construction-related stocks after Congress approved a $ 1,000 billion infrastructure bill last week.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida has said the conditions for raising interest rates may not be met until the end of next year. Traders fear that a spike in inflation may prompt central banks to withdraw stimulus measures that have helped raise stock prices.
“Investors will be on the lookout for any clue that signals an adjustment in the process of central bank spending cuts and rate hike expectations,” ActivTrades’ Anderson Alves said in a report.
In early trading, the FTSE 100 in London was down less than 0.1% to 7,298.82 and the DAX in Frankfurt was up 0.1% to 16,070.01. The CAC 40 in Paris lost less than 0.1% to 7,042.55.
On Wall Street, the future of the Dow Jones Industrial Average was less than 0.1%.
On Monday, the S&P 500 added 0.1%. The Dow Jones rose 0.3% and the Nasdaq composite rose 0.1%, also setting records.
In Asia, the Shanghai Composite Index rose 0.2% to 3,507.00 while the Nikkei 225 in Tokyo lost 0.8% to 29,285.46. The Hang Seng in Hong Kong was up 0.2% to 24,813.13.
The Kospi in Seoul lost 0.1% to 2,962.46 while the S & P-ASX 200 in Sydney lost 0.2% to 7,434.20.
The Indian Sensex fell 0.3% to 60,353.72. New Zealand, Bangkok and Jakarta advanced while Singapore declined.
Also on Tuesday, the Japanese government announced that wage growth fell to a 0.2% year-over-year loss of 0.2% earlier in September.
On Wall Street, steelmakers and other businesses likely to benefit from infrastructure spending also recovered after Congress passed the infrastructure bill.
Nucor gained 3.6%. Vulcan Materials, which sells crushed stone and concrete, rose 4.9%. The equipment manufacturer Caterpillar grew by 4.1%.
Investor concerns about inflation were assuaged by rising corporate profits.
Advanced Micro Devices jumped 10.1% for the biggest gain of the S&P 500 after announcing that Facebook’s parent company Meta would use AMD chips in its data centers. Chipmaker Nvidia rose 3.5%.
The Labor Department is due to report wholesale inflation on Tuesday and consumer inflation on Wednesday.
In energy markets, benchmark US crude oil rose 42 cents to $ 82.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 66 cents on Monday to $ 81.93. Brent crude, the basis of international oil prices, added 37 cents to $ 83.80 a barrel in London. It gained 69 cents the previous session at $ 83.43 a barrel.
The dollar fell to 112.97 yen from 113.24 yen on Monday. The euro was little changed at $ 1.1588.
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