Stock Market Today: Global stocks gain on Wall Street rise as war shock fades in markets
BANGKOK (AFP) – Global stocks rose on Tuesday after US stocks rose as investors retreated from some of last week’s moves driven by concerns about the war in the Middle East.
Oil prices fell and US futures also fell.
Markets are awaiting China’s latest economic growth figures, scheduled for release on Wednesday. Economists expect annual growth to fall below 5% in the July-September period from 6.3% in the previous quarter.
The weakness of the Chinese economy represents a burden on regional and global trade and manufacturing, slowing the global recovery from the epidemic.
In early European trading, the German DAX index rose 0.1% to 15,258.33, and the CAC 40 index in Paris rose 0.1% to 7,031.52. The British FTSE 100 index rose 0.3% to 7,650.27 points.
S&P 500 and Dow Jones Industrial Average futures rose less than 0.1%.
In Asia, the Nikkei 225 index in Tokyo rose 1.2% to 32,040.29 points, and the Hang Seng index in Hong Kong added 0.7% to 17,771.08 points.
The Shanghai Composite Index rose 0.3% to 3,083.50 points. In Australia, the S&P/ASX 200 rose 0.5% to 7,056.10. India’s Sensex advanced 0.6%, and Thailand’s SET rose 0.5%.
It appears that the markets have recovered for now Israel was preparing Fears have increased about the possibility of the conflict spreading along Israel’s borders with Lebanon.
On Monday on Wall Street, the S&P 500 rose 1.1% on its best day since October 7. A surprise attack on Israel by Hamas. It closed at 4,373.63. The Dow Jones Index rose 0.9% to 33,984.54 points, and the Nasdaq Composite Index added 1.2% to 13,567.98 points.
“The risk-off tone that prevailed in the markets a few days ago appears to be dissipating thanks to a lot of shuttle diplomacy by (US Secretary of State Antony) Blinken and others in the region,” said Robert Carnell and Nicholas Mapa of ING Economics. comment. “However, all of this is before Israel launches its ground assault on Gaza, and this could see sentiment quickly sour again.”
Oil prices fell after a volatile week due to fears of supply disruptions from Iran due to the war.
Early Tuesday, the price of U.S. crude oil rose 2 cents to $86.68 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, it fell $1.03 to settle at $86.66. It has been bouncing up and down since it dropped from $70 over the summer to over $90 late last month.
Brent crude, the international standard, rose 15 cents to $89.80 a barrel. The price of oil fell $1.24 on Monday to $89.65 per barrel.
Gold fell $1.60 to settle at $1,932.70 per ounce. Last week was the best in nearly seven months with fears growing ahead of a possible Israeli invasion of northern Gaza.
Treasury bond yields jumped after falling last week due to fears of escalating fighting in Gaza. Early Tuesday, the yield on the 10-year Treasury note was 4.75%, up from 4.71% on Monday and from 4.62% late Friday.
Financial markets have a history of initially weakening after geopolitical shocks, such as war, and then returning to longer-term fundamentals.
“Investors should remember that markets are highly resilient, have endured countless wars, recessions and depressions, and rewarded long-term investors with a well-crafted financial plan,” said Mark Hackett, head of investment research at Nationwide.
More than 50 companies in the S&P 500 will report summer earnings this week, including Bank of America, Johnson & Johnson and Tesla, and investors are hoping for a better situation. Corporate earnings reporting season.
The remarkably resilient US economy has continued to remain strong, despite the much higher interest rates imposed by the Federal Reserve to reduce inflation. FactSet estimates that earnings per share at S&P 500 companies likely rose 0.4% in the fourth quarter from the previous year.
last week, Several banks He helped kick off the reporting season with better reports than feared.
Charles Schwab shares rose 4.7% after it reported stronger earnings for the three months through September than analysts expected.
Lululemon shares jumped 10.3% in the first trading session after S&P Dow Jones Indices said the apparel company would join the widely tracked S&P 500 index. It’s a replacement Activision Blizzard, which was acquired by Microsoft.
In currency trading, the US dollar rose to 149.61 Japanese yen from 149.51 yen. The euro fell to $1.0553 from $1.0561.