Global Stocks Mixed as Inflation, Energy Weigh on Growth | Health & Fitness

By YURI KAGEYAMA – AP Business Writer

TOKYO (AP) — Stocks fell in Europe on Tuesday after an upbeat session in Asia, while futures on Wall Street fell ahead of U.S. markets reopening after the Independence Day holiday.

Benchmark indices also fell in Paris, London, Frankfurt and Shanghai. But shares rose in Tokyo, Seoul and Hong Kong.

The war in Ukraine and its impact on energy supplies cast a shadow over global economic prospects at a time when central banks are raising interest rates to curb inflation.

the The International Energy Agency said in a report on Tuesday that high natural gas prices and supply fears from the war in Ukraine will cripple economic activity, slowing demand growth for years to come.

The Paris-based agency forecast that global demand for natural gas will increase by 140 billion cubic meters between 2021 and 2025, less than half the 370 bcm increase seen in the previous five-year period. He said the revised forecast is mainly due to expectations of slower economic growth rather than buyers switching from gas to coal, oil or renewable energy.

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A recent Fitch Ratings report said a technical recession in the euro-using region was increasingly likely due to disruptions in Russian gas supplies to Europe.

Germany’s DAX fell 1.1% to 12,630.86 while Paris’s CAC 40 lost 1.2% to 5,885.94. Britain’s FTSE 100 fell 1.3% to 7,135.52. The S&P 500 future was 0.6% lower, while the Dow Industrial fell 0.5%.

German Chancellor Olaf Scholz met senior representatives of employers and unions at his Berlin office on Monday to seek ways to address the impact of rising prices and prevent an inflation spiral in Europe’s largest economy.

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Benchmarks in Asia were mostly higher on hopes of an easing of trade tensions between Beijing and Washington.

Japan’s benchmark Nikkei 225 index rose 1.0% to finish at 26,423.47. South Korea’s Kospi jumped 1.8% to 2,341.78. In Hong Kong, the Hang Seng gained 0.1% to 21,856.85. The Shanghai Composite was little changed, shedding less than 0.1% at 3,404.03.

from China Ministry of Commerce said on Tuesday that Vice Premier Liu He spoke with Treasury Secretary Janet Yellen about coordinating economic policy between the two largest economies and maintaining stability in supply chains.

In a statement, it also said the Chinese side “raised concerns over issues such as the removal of additional tariffs and sanctions imposed by the United States on China and the fair treatment of Chinese companies.” he said.

Australia’s S&P/ASX 200 rose 0.3% to 6,629.30 after the The central bank raised its benchmark interest rate for the third time in three consecutive months, changing the cash rate from 0.85% to 1.35%. The Reserve Bank of Australia’s half percentage point increase on Tuesday was the same size as its June increase.

When the bank raised the rate by a quarter percentage point at its monthly board meeting in May, it was the first rate hike in more than 11 years.

Global investors have been concerned about rising inflation and the possibility that higher interest rates could trigger a recession in some economies. Minutes from the Fed’s latest policy meeting are due out on Wednesday and could provide clues about future policy.

Meanwhile, a resurgence in COVID-19 Infections are also looming in Europe, the US and parts of Asia, bringing the threat of a reversal to pandemic precautions.

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In energy trading, benchmark US crude rose 55 cents to $108.98 a barrel. It earned $2.67 on Friday at $108.43 a barrel. The store was closed on Monday. Brent crude, the international standard, fell 77 cents to $112.73 a barrel.

In currency trading, the US dollar rose to 135.75 Japanese yen from 135.69 yen. The euro cost $1.0317, down from $1.0423.

Yuri Kageyama is on Twitter

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