Global stocks were mostly higher on Monday as investors awaited updates on US inflation and the latest economic data from China.
Benchmarks fell in Hong Kong and Tokyo, but rose in Shanghai, Paris, Frankfurt and London. Oil prices were mixed.
Recent spikes in oil prices have raised concerns in the United States and other major economies that inflation will not fall as much as expected.it might lead federal reserve system and other central banks keep interest rates high for long periods of time, negatively impacting the prices of stocks and other investments.
Germany’s DAX rose 0.7% to 15,846.97, while Paris’ CAC40 index rose 0.9% to 7,308.46. In London, the FTSE 100 rose 0.8% to 7,539.30.
The S&P 500 futures index rose 0.4%, and the Dow Jones Industrial Average futures index rose 0.3%.
China reported a slight rise in its inflation data over the weekend, suggesting deflationary pressures seen as a sign of weakness in a slowing economy may be easing. The government is expected to announce industrial production figures for August later this week.
“We expect inflation to recover further in the coming months as policy support fosters a gradual recovery in China’s economic momentum,” Capital Economics’ Jichun Huang said in a commentary.
The Shanghai Composite Index rose 0.8% to 3,142.78, while Hong Kong’s Hang Seng Index fell 0.6% to 18,087.79.
Chinese e-commerce giant Alibaba’s Trading in Hong Kong after the company’s former CEO Daniel Chan announced he would step down as head of cloud computing and instead lead an investment fund to drive the company’s future growth. Shares fell more than 2.6%.
The company is restructuring after setbacks from regulatory crackdowns on its technology and financial sectors.
Tokyo’s Nikkei Stock Average fell 0.4% to $32,467.76, while Seoul’s Kospi rose 0.4% to $2,556.88.
Australia’s S&P/ASX 200 index rose 0.5% to 7,192.30.
China is expected to report more data this week, while the U.S. will release an update on consumer prices on Wednesday, with economists saying consumer-level prices rose 3.6% in August from a year earlier. I hope it will be shown that it did.
Stocks on Wall Street rose modestly on Friday, but the market still ended its first losing week in three weeks.
The S&P 500 rose 0.1% for the week, but fell 1.3% in a week shortened by the Labor Day holiday.
The Dow Jones Industrial Average rose 0.2% and the Nasdaq Composite rose 0.1%.
Kroger rose 3.1% after its latest quarterly results beat analysts’ expectations but sales fell short of expectations.
The company announced that Albertsons. Agreement to sell some stores, has acquired private brands and other assets, and is seeking regulatory approval for a proposed merger. Kroger also announced an agreement to pay more than $1.2 billion to resolve the majority of potential opioid-related claims brought by states, local governments, and Native American tribes.
Bond market yields remained relatively stable, contributing to Wall Street’s silence.
The yield on the 10-year Treasury note was 4.29% early Monday, up from 4.2% late Friday. The two-year Treasury yield, which more closely tracks Fed expectations, rose to 5.00% from 4.97%.
Inflation has generally slowed since peaking above 9% last summer, but the worry is that the last improvement to meet the Fed’s 2% inflation target is the most difficult. It is possible that
High interest rates are thought to slow the economy and hurt the job market, and should ultimately help curb inflation. But interest rates, the highest in more than 20 years, have yet to have a significant effect. The threat is that the Fed could raise rates again and keep them high, at least for longer than investors expect.
Early Monday morning, benchmark U.S. crude oil fell 20 cents to $87.31 a barrel in electronic trading on the New York Mercantile Exchange. It rose 64 cents to $87.51 a barrel on Friday.
Brent crude, the price benchmark for international trade, rose 11 cents to $90.76 a barrel.
The dollar fell to 146.08 yen from 146.99 yen after Bank of Japan Governor Kazuo Ueda reportedly hinted at a possible change to Japan’s long-standing near-zero interest rate policy. The euro rose to $1.0730 from $1.0714.