fair.png
Friday July 1st, 2022 7:41PM

Global shares mostly fall as rate hikes, China slowdown loom

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Global shares fell on Monday as interest rate hikes and a slowing Chinese economy weighed on investor sentiment.

European shares fell in early trading and Asian benchmarks also declined.

China reported its exports rose 3.7% over a year earlier in April to $273.6 billion, down sharply from March’s 15.7% growth, as global demand weakened. That added to pressure on the world’s second-largest economy after Shanghai and other industrial cities were shut down to fight virus outbreaks.

Imports crept up 0.7% in April to $222.5 billion, in line with the previous month’s sub-1% growth.

Companies and investors worry the ruling Communist Party’s “zero-COVID” strategy that temporarily closed most businesses in Shanghai and other industrial centers is disrupting global trade and activity in autos, electronics and other industries.

But a slowing global economy is also taking a toll.

“The blame rests partly with China’s COVID-19 outbreak, which has led to manpower shortages and bottlenecks in the logistics sector. But the extent of these disruptions shouldn’t be overplayed," Julian Evans-Pritchard said in a commentary. “Instead, the drop in exports seems to mostly reflect softer demand."

France's CAC 40 slipped 1.4% in early trading to 6,172.41. Germany's DAX fell 1.1% to 13,520.87. Britain's FTSE 100 was down 1.1% at 7,306.34. U.S. shares were set to drift lower with Dow futures dipping 1.3% to 32,388.0. S&P 500 futures fell 1.5% to 4,058.75.

The Shanghai Composite was little changed, adding nearly 0.1% to 3,004.14. Markets were closed in Hong Kong for a national holiday.

Japan’s benchmark Nikkei 225 lost 2.5% to finish at 26,319.34. South Korea’s Kospi dipped 1.3% to 2,610.81. Australia’s S&P/ASX 200 dropped 1.2% to 7,120.70. The benchmark in Jakarta, Indonesia, lost 4.4% as markets reopened after the Eid al-Fitr holiday last week.

Investors were watching for the outcome of the presidential election in the Philippines, although it remains unclear how economic policies might change. The son of long-ago overthrown Philippine dictator Ferdinand Marcos is the top contender in Monday’s vote, based on most voter-preference surveys.

A turbulent week on Wall Street ended Friday with more losses and the stock market’s fifth straight weekly decline. The pullback came as investors balanced a strong U.S. jobs report against worries the Federal Reserve may cause a recession in its drive to halt inflation.

The S&P 500 ended with a loss of 0.6%. The Dow Jones Industrial Average fell 0.3%, while the Nasdaq slid 1.4%. The Russel 2000 slid 1.7%, to 1,839.56.

Apart from concerns about inflation and coronavirus restrictions, the war in Ukraine is still a major cause for uncertainty. More than 60 people were feared dead after a Russian bomb flattened a school being used as a shelter, Ukrainian officials said. Moscow’s forces pressed their attack on defenders inside Mariupol’s steel plant in an apparent race to capture the city ahead of Russia’s Victory Day holiday Monday.

“Russia’s Victory Day today will also bring geopolitical risks back into the limelight as well. President Putin is likely to reiterate his justification for the Ukraine war but markets may be watching for any further efforts to ramp-up military operations to secure the war," said Yeap Jun Rong, market strategist at IG in Singapore.

The Fed is hoping to raise rates and slow the economy enough to snuff out the highest inflation in four decades, but it risks choking off growth if it goes too far or too quickly.

In energy trading, benchmark U.S. crude fell $1.29 cents to $108.48 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis for pricing oil for international trading, edged down $1.15 cents to $111.24 a barrel.

In currency trading, the U.S. dollar rose to 131.13 Japanese yen from 130.55 yen. The euro cost $1.0517, down from $1.0545.

___

AP Business Writer Joe McDonald in Beijing contributed.

  • Associated Categories: Associated Press (AP), AP Elections, General Presidential Election News, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
White House says internet providers to discount fee for poor
The Biden administration says 20 internet companies have agreed to provide discounted service to low-income Americans
5:21AM ( 16 minutes ago )
Israeli PM's government limps into new parliament session
The government of Israel’s embattled prime minister is limping into the opening of parliament’s summer session on the verge of collapse
5:15AM ( 23 minutes ago )
Global shares mostly fall as rate hikes, China slowdown loom
Global shares have fallen as interest rate hikes and a slowing Chinese economy weighed on investor sentiment
5:14AM ( 24 minutes ago )
Associated Press (AP)
With Marcos Jr. tipped to win, Philippines at tenuous moment
Filipinos are voting for a new president with the son of an ousted dictator and a champion of human rights as the top contenders
1:29AM ( 4 hours ago )
Philippine election narrows to Marcos, rights defender
Voters in the Philippines are choosing their next leader, senators, representatives and thousands of local office holders Monday
12:23AM ( 5 hours ago )
2022 midterms: What to watch in Nebraska, West Virginia
The top race in Tuesday’s primary elections in Nebraska and West Virginia is a heavily contested Republican primary for Nebraska governor
12:17AM ( 5 hours ago )
AP Elections
France's Macron inaugurated for second five-year term
French President Emmanuel Macron has been inaugurated for a second term
9:22AM ( 1 day ago )
France's Macron to be inaugurated for second five-year term
French President Emmanuel Macron is being inaugurated for a second term during a ceremony at the Elysee presidential palace
4:48AM ( 2 days ago )
Oz's ties to Turkey attacked in Pennsylvania's Senate race
Mehmet Oz’s rivals in Pennsylvania’s Republican primary for U.S. Senate are escalating their attacks on the celebrity heart surgeon’s connections to his parents’ native country of Turkey, raising it as a possible national security issue
10:33PM ( 2 days ago )
General Presidential Election News
Marketing deals trickle down from NCAA to high school sports
The ability of college athletes to monetize their name, image and likeness has begun to trickle down to high schools
2:50AM ( 2 hours ago )
Putin to mark Victory Day as Russia presses Ukraine assault
President Vladimir Putin is due to address a military parade in Red Square on Russia’s Victory Day holiday as Ukraine's military warns of a high probability of missile strikes
2:16AM ( 3 hours ago )
China trade weakens after cities shut down to fight virus
China’s export growth tumbled in April after Shanghai and other major industrial cities were shut down to fight virus outbreaks
2:11AM ( 3 hours ago )
AP Business
South Korea: North Korea test-fired missile from submarine
South Korea's military says North Korea has flight-tested a ballistic missile that was likely fired from a submarine, continuing a provocative streak in weapons demonstrations that may culminate with a nuclear test in the coming weeks or months
11:55AM ( 1 day ago )
Biden plugs manufacturing initiative at Ohio metal company
President Joe Biden is pledging that 3D printing technology will help return factory jobs to the U.S. and reduce inflationary pressures
4:39PM ( 2 days ago )
Biden to plug manufacturing initiative at Ohio metal company
President Joe Biden is set to announce that five major U.S. manufacturers have made commitments to boost their reliance on small and medium American firms for 3D printing
5:44AM ( 2 days ago )
AP Business - Corporate News
Live updates | UN says more than 170 evacuated from Mariupol
More than 170 people have been evacuated from Mariupol after weeks of fighting as Russia attempts to take over the port city
4:34PM ( 13 hours ago )
Live updates | Bono sings 'Stand By Me' at Kyiv bomb shelter
U2 frontman Bono has performed in a Kyiv subway station that now serves as a bomb shelter protecting Ukrainians from Russian missiles
4:07PM ( 13 hours ago )
G-7 leaders mark VE Day stressing unity, support for Ukraine
Leaders from the Group of Seven developed democracies have pledged to phasing out or banning the import of Russian oil, as they met with Ukraine’s President Volodymyr Zelenskyy to stress their support
3:07PM ( 14 hours ago )
AP Business - Economy
Stocks open lower, yields rise at end of a topsy-turvy week
Stocks are opening lower and bond yields are rising as yet another report of robust hiring suggests the Federal Reserve will need to keep pressing the fight against inflation and cool off the economy with higher interest rates
9:48AM ( 2 days ago )
US futures skid on recession fears ahead of jobs report
Wall Street appeared headed for another selloff to finish the week Friday as fears spread that U.S. interest rate hikes to fight inflation might stall economic growth
8:28AM ( 2 days ago )
Global stocks, Wall St futures skid on fears over rate hike
Global stocks and Wall Street futures are lower as fears spread that U.S. interest rate hikes to fight inflation might stall economic growth
4:58AM ( 3 days ago )
AP Business - Financial Markets
White House says internet providers to discount fee for poor
The Biden administration says 20 internet companies have agreed to provide discounted service to low-income Americans
5:21AM ( 16 minutes ago )
Israeli PM's government limps into new parliament session
The government of Israel’s embattled prime minister is limping into the opening of parliament’s summer session on the verge of collapse
5:15AM ( 23 minutes ago )
Russia marks WWII victory overshadowed by Ukraine
Russian President Vladimir Putin has sought to cast Moscow’s military action in Ukraine as a forced response to Western policies and a necessary move to ward off a potential aggression
5:10AM ( 27 minutes ago )
Live updates | Putin: Campaign in Ukraine forced, necessary
Russian President Vladimir Putin has sought to cast Moscow’s military action in Ukraine as a forced response to Western policies
4:57AM ( 40 minutes ago )
Russia presses Ukraine assault as Putin marks Victory Day
Russian forces pushed forward in their assault on Ukraine, seeking to capture the crucial southern port city of Mariupol as Moscow celebrated its Victory Day holiday
4:14AM ( 1 hour ago )