Global Stocks, Wall Street Down 06/30 05:29
Global stock markets declined Thursday after the U.S. economy contracted,
fueling fears of a worldwide downturn.
BEIJING (AP) -- Global stock markets declined Thursday after the U.S.
economy contracted, fueling fears of a worldwide downturn.
London and Frankfurt opened lower. Tokyo and Hong Kong declined while
The future for Wall Street's benchmark S&P 500 index was down 1.1% after
data Wednesday showed the U.S. economy shrank in the first quarter amid high
inflation and weakening consumer confidence.
Investors are uneasy about signs the biggest global economy might be in a
recession due to interest rate hikes imposed to cool surging inflation.
"Equities demand could remain muted for at least the next four to six months
as interest rate hikes work through the U.S. economy," Stephen Innes of SPI
Asset Management said in a report.
In early trading, the FTSE 100 in London fell 1.5% to 7,202.53. The DAX in
Frankfurt lost 2% to 12,746.35 and the CAC 40 in Paris shed 1.9% to 5,917.07.
On Wall Street, the future for the Dow Jones Industrial Average was off 0.9%.
On Wednesday, the S&P 500 slipped 0.1% after official data showed economic
activity contracted 1.6% at an annualized rate in the three months ending in
March. That was the first contraction since the second quarter of 2020 in the
depths of the pandemic.
The U.S. benchmark is down 7.6% for the month and 20% from its Jan. 3 peak.
The Dow rose 0.3% while the Nasdaq composite slipped less than 0.1%.
In Asia, the Shanghai Composite Index rose 1.1% to 3,398.62 after an
official monthly gauge of factory activity rose and new orders improved. The
Hang Seng in Hong Kong lost 0.5% to 21,899.57 after spending much of the day in
The Nikkei 225 in Tokyo fell 1.5% to 26,393.04 after May industrial
production slumped 7.2% compared with the previous month. That was the sharpest
decline since the start of the coronavirus pandemic in early 2020 and reflected
disruptions in China due to the anti-virus controls.
The Kospi in Seoul shed 1.6% to 2,339.70 after official data showed
industrial production rose 0.1% in May, possibly also depressed by disruption
caused by anti-disease measures that temporarily shut down Shanghai and other
Chinese industrial centers.
Sydney's S&P-ASX 200 declined 2% to 6,568.10 while India's Sensex gained
0.3% to 53,208.84. New Zealand, Singapore and Bangkok advanced while Jakarta
Federal Reserve Chair Jerome Powell, speaking at a European Central Bank
meeting in Portugal, said Wednesday there is "no guarantee" inflation can be
tamed without hurting the job market.
The global economy also has been roiled by Russia's invasion of Ukraine,
which pushed up prices of oil, wheat and other commodities.
A monthly purchasing managers' index released Thursday by the Chinese
statistics agency and an industry group rose to 50.2 in June from 49.6 on a
100-point scale on which numbers above 50 indicate activity is increasing.
In energy markets, benchmark U.S. crude lost 3 cents to $109.75 per barrel
in electronic trading on the New York Mercantile Exchange. The contract fell
$1.98 on Wednesday to $109.78. Brent crude, the price basis for international
oil trading, added 6 cents to $112.51 per barrel in London. It shed $1.72 the
previous session to $116.26. per barrel.
The dollar declined to 136.23 yen from Wednesday's 136.54 yen. The euro fell
to $1.0447 from $1.0523.