sunny.png
Friday June 24th, 2022 6:57PM

European shares rise, Asia declines, eyeing Fed, omicron

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — European benchmarks rose Tuesday but Asian shares mostly declined following a retreat on Wall Street.

France's CAC 40 added 0.6% in early trading to 7,160.56, while Germany's DAX added 0.7% to 15,882.28. Britain's FTSE 100 rose 0.4% to 7,474.60. U.S. shares were set to drift higher with Dow futures inching up less than 0.1% to 35,965.00. S&P 500 futures rose nearly 0.1% to 4,664.50.

Investors are keeping an eye on rising numbers of coronavirus cases, especially in China, where a third city has locked down its residents because of a COVID-19 outbreak, raising the number confined to their homes to about 20 million people.

“In China, upward momentum quickly faded and reversed as COVID-19 restrictions were tightened once again in some Chinese cities,” said Jeffrey Halley, senior market analyst at Oanda.

Such disruptions can have regionwide implications for trade and other activity. Major companies, including automakers such as Toyota, had been counting on a recovery in the supply of semiconductor chips and other products from China and the rest of Asia, as vaccinations and other coronavirus prevention efforts has advanced. The recent surge in infections by the omicron variant of coronavirus has shaken such hopes.

Japan is also seeing a dramatic surge in reported COVID cases, which experts say are mostly omicron. Japan decided to keep strict border controls through next month, which ban the entry of travelers except for returning residents and citizens. Prime Minister Fumio Kishida said the large-scale facilities run by the Japanese military to give vaccinations, which had closed last year, will reopen to speed up booster shots. So far, fewer than 1% of the population have received boosters.

Japan’s benchmark Nikkei 225 fell 0.9% to finish at 28,222.48, coming back from a national holiday Monday. South Korea’s Kospi picked up less than 1 point to 2,927.38. Australia’s S&P/ASX 200 dipped 0.8% to 7,390.10. Hong Kong’s Hang Seng inched down less than 0.1% to 23,739.06, while the Shanghai Composite index sank 0.7% to 3,567.44.

High inflation is taking a toll on American families, Federal Reserve Chair Jerome Powell acknowledged in remarks to be delivered at a Tuesday congressional hearing on Powell's nomination to a second four-year term.

Higher interest rates make stocks of expensive tech companies and other pricey growth companies less attractive to investors and the sector has been slipping as bond yields rise. The tech sector has been the biggest weight on the market through January and is coming off of its worst week since October 2020.

Hiking interest rates could rein in surging prices, but they would also mark an end to easy money conditions that have kept financial markets booming since the first shocks of the pandemic in early 2020. The market now puts the chances of the Fed raising short-term rates by at least a quarter point in March at around 78%. A month ago, it was about 36%.

Looking ahead, the U.S. Labor Department will release the Consumer Price Index for December on Wednesday. The agency will give investors details on how inflation is impacting businesses with its Producer Price Index for December on Thursday. On Friday, Citigroup, JPMorgan Chase and Wells Fargo will report their latest quarterly financial results.

In energy trading, U.S. benchmark crude rose $1.30 to $79.53 a barrel in electronic trading on the New York Mercantile Exchange. It lost 67 cents to $78.23 on Monday.

Brent crude, the international standard, added $1.18 to $82.05 a barrel.

In currency trading, the U.S. dollar rose to 115.27 Japanese yen from 115.20 yen. The euro cost $1.1348, up from $1.1326.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
European shares rise, Asia declines, eyeing Fed, omicron
European benchmarks have risen after Asian shares mostly declined following a retreat on Wall Street
4:40AM ( 16 minutes ago )
N Korea fires possible missile into sea amid stalled talks
South Korea and Japan say North Korea has fired what appeared to be a ballistic missile into its eastern sea
4:29AM ( 26 minutes ago )
Djokovic back into swing in Australia despite visa concerns
Tennis star Novak Djokovic has held a practice session at Melbourne Park on his second day out of detention, focusing on his Australian Open title defense while still facing the prospect of deportation because he’s not vaccinated for COVID-19
3:57AM ( 59 minutes ago )
Associated Press (AP)
N. Korea fires possible missile into sea amid stalled talks
South Korea and Japan say North Korea has fired what appeared to be a ballistic missile into its eastern sea
2:31AM ( 2 hours ago )
Asian stocks mostly lower, eyeing Fed, China omicron cases
Asian shares have mostly declined in cautious trading following a retreat on Wall Street
2:03AM ( 2 hours ago )
China locks down third city, raising affected to 20 million
A third Chinese city has locked down its residents because of a COVID-19 outbreak, raising the number confined to their homes in China to about 20 million people
1:07AM ( 3 hours ago )
AP Business
Fed vice chair is latest official to quit in trading scandal
Federal Reserve Vice Chair Richard Clarida said he will step down on Friday, the third Fed official to resign in the wake of a trading scandal at the central bank
5:53PM ( 11 hours ago )
Fed Vice Chair Richard Clarida resigns amid trading scandal
Federal Reserve Vice Chair Richard Clarida said he will step down on Friday, the third Fed official to resign in the wake of a trading scandal at the central bank
5:26PM ( 11 hours ago )
Judge pokes holes in Swiss cheesemakers' legal arguments
A federal judge has ruled that gruyere cheese does not have to come from the Gruyere region of Europe to be sold under the gruyere name
4:59PM ( 11 hours ago )
AP Business - Economy
Asian stocks mixed after Wall St falls on rate hike worries
Asian stock markets are mixed after Wall Street fell on worries the Federal Reserve will raise interest rates as soon as March
11:04PM ( 1 day ago )
Sri Lanka seeks Chinese debt restructuring amid crisis
The president of debt-ridden Sri Lanka has asked China for the restructuring of its loans and access to preferential credit for imports of essential goods, as the island nation struggles in the throes of its worst economic crisis
12:32PM ( 1 day ago )
China foreign minister in Sri Lanka to discuss Belt and Road
Chinese Foreign Minister Wang Yi is in Sri Lanka seeking to advance Beijing’s ambitious Belt and Road Initiative as the island nation tries to rescue itself from a foreign currency and debt crisis, partly due to infrastructure built with Chinese loans that don’t generate revenue
4:03AM ( 2 days ago )
AP Business - Financial Markets
India starts booster shots for vulnerable amid omicron surge
Healthcare and front-line workers along with people above age 60 with health problems are lining up at vaccination centers across India to receive booster shots as infections linked to the omicron variant surge
8:25AM ( 20 hours ago )
As spending bill stalls, Biden climate goals remain elusive
President Joe Biden faces a steep path to achieve his ambitious goal of slashing planet-warming greenhouse gas emissions in half by 2030
1:15PM ( 2 days ago )
Former anti-terror chief arrested over Kazakhstan protests
The former head of Kazakhstan's counterintelligence and anti-terror agency has been arrested on charges of attempting to overthrow the government
12:17PM ( 2 days ago )
AP Business - Industries
EXPLAINER: What does record inflation mean for the eurozone?
Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs
10:43AM ( 3 days ago )
Nations using euro see record inflation. What does it mean?
Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs
8:24AM ( 3 days ago )
Dozens of protesters, 12 police dead in Kazakhstan protests
Authorities say security forces have killed dozens of protesters and 12 police have died during extraordinarily violent demonstrations in Kazakhstan
3:39PM ( 4 days ago )
AP Business - Utilities
N Korea fires possible missile into sea amid stalled talks
South Korea and Japan say North Korea has fired what appeared to be a ballistic missile into its eastern sea
4:29AM ( 26 minutes ago )
Djokovic back into swing in Australia despite visa concerns
Tennis star Novak Djokovic has held a practice session at Melbourne Park on his second day out of detention, focusing on his Australian Open title defense while still facing the prospect of deportation because he’s not vaccinated for COVID-19
3:57AM ( 59 minutes ago )
European Parliament President David Sassoli dies at age 65
David Sassoli, the Italian journalist who worked his way up in politics and became president of the European Union’s parliament, has died at a hospital in Italy
3:41AM ( 1 hour ago )
Safety doors failed in NYC high-rise fire that killed 17
Investigators are trying to determine why safety doors failed to close in a New York City high-rise when a deadly fire broke out
3:17AM ( 1 hour ago )
Kazakh leader: Russia-led security group to pull out troops
The president of Kazakhstan has announced that a Russia-led security alliance will start pulling out its troops from the country in two days after completing its mission
3:03AM ( 1 hour ago )