Stocks: Mixed World Markets | CTV News


World markets were mixed on Wednesday after Asian stocks rebounded while Europe opened lower and Wall Street futures fell.

London and Frankfurt refused. Shanghai and Tokyo closed higher. Oil price increased by 1 USD/barrel, partially recovering the previous day’s drop.

Wall Street’s benchmark S&P 500 index rose on Tuesday as bank stocks recovered some of their losses on concerns that customers could withdraw their deposits following the collapse of two US lenders.

That’s despite data showing prices rose 6% from a year ago in February, decelerating from 6.4% the previous month but well above the Federal Reserve’s 2% target.

“Measures of stress in financial markets have eased from Monday’s spike – but remain high,” ING economists said in a report.

At the beginning of the session, London’s FTSE 100 lost 0.6% to 7,591.73. The DAX in Frankfurt fell 0.3% to 15,188.30 and the CAC 40 in Paris fell 0.7% to 7,094.06.

On Wall Street, futures on the benchmark S&P 500 index rose less than 0.1%. That for the Dow Jones Industrial Average rose 0.2%.

On Tuesday, the S&P 500 rose 1.7% and the Dow gained 1.1%. The Nasdaq composite rose 2.1%.

Investors fear the Fed could respond to long-term upward pressures by speeding up rate hikes to dampen economic activity and inflation.

Those worries were overshadowed by worries about the US financial system following the collapse of Silicon Valley Bank on Friday and Signature Bank on Sunday. President Joe Biden and regulators have tried to assure the public that risks are contained and that deposits in other banks are safe.

Data on Tuesday showed core inflation, with volatile food and energy prices removed to show a clearer trend, was 0.5% in February from the previous month, up from the previous month. January’s 0.4% increase. The Fed pays close attention to core inflation when deciding monetary policy.

The Fed faces a dilemma over how to respond as banks are under strain after the fastest rate hike in a decade has depressed the prices of their assets.

In Asia, the Shanghai Composite Index rose 0.6% to 3,253.31 after China economic activity improved in January and February but was lower than expected after the end of the measures. Anti-virus control.

Government data showed retail sales rose 3.5% from a year earlier, recovering from December’s 1% decline. Factory output rose 2.4%, up from 1.3 %.

The Nikkei 225 in Tokyo rose less than 0.1% to 27,229.48 after major Japanese companies announced they had agreed with unions on the biggest pay rise in nearly two decades. Low wages are seen as a major drag on economic growth in Japan, but less than a fifth of workers are unionized.

Hang Seng in Hong Kong rose 1.5% to 19,539.87. Kospi in Seoul rose 1.3% to 2,379.72.

India’s Sensex fell 0.2% to 57,783.79. New Zealand and Southeast Asia markets grow.

On Wall Street, First Republic Bank rose 27% on Tuesday after falling 67.5% in the previous three days. KeyCorp is up 6.9%, Zions Bancorp is up 4.5% and Charles Schwab is up 9.2%.

The yield on the two-year Treasury note, or the difference between market price and payment at maturity, rebounded to 4.21% from 4.02% late Monday, another big move. The yield on the 10-year Treasury note increased from 3.55% to 3.66%.

In the energy market, the price of benchmark US crude rose $1.03 to $72.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell US$3.47 on Tuesday to US$71.33. Brent crude, the base price for international oil trading, rose $1.08 to $78.53 a barrel in London. It lost US$3.32 the previous day to US$77.45.

The dollar rose to 134.68 yen from 134.19 yen on Tuesday. The euro fell to US$1.0726 from US$1.0741.

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