Stocks steady, oil rallies ahead of U.S. inflation data

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LONDON (Businesshala) – Global shares remained below record highs this week and oil prices rose in panic-stricken markets on Wednesday ahead of inflation data later in the day.

FILE PHOTO: The German stock price index DAX graph is pictured on the stock exchange in Frankfurt, Germany on November 9, 2021. Businesshala / Employee

The US consumer price index for October is predicted by a Businesshala poll of economists at an annualized 4.3% on the closely watched key measure against the US Federal Reserve’s average annual 2% inflation target.

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Seema Shah, Chief Strategist, Principal Global Investors, said, “We know inflation is very high right now, equity markets do not expect it to remain high for long.

The mood may change if there are indications that inflationary pressures extend beyond supply chain concerns, he said.

Brent and US crude futures extended gains in the fourth session, hitting a two-week high of $85 a barrel, after industry data showed an unexpected fall in US crude stocks last week.

The MSCI Global Equity Index was stable and the S&P 500 futures were also flat after closing lower on Wall Street on Tuesday, ending a multi-day rally to consecutive record closing highs as a consensus-beating earnings season ended. Hui.

European shares rose 0.18%, helped by energy stocks, but were also trapped below recent highs, while Britain’s FTSE 100 index rose 0.36%.

Another inflation alert came from sugar factory gate prices, which are rising at their fastest clip in a quarter century.

MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier losses for a 0.16% gain.

Shares of Chinese property developer Fantasia Holdings fell as much as 50% after a six-week trading halt, before recoupling some losses as the company warned it might not be able to meet its debt obligations. Is.

Analysts at Oxford Economics said they expected China’s wealth decline to be “contained”, but added that “with shifting demographics, high numbers of vacant apartments, and excessive leverage from some large property developers, China’s The vast property sector could crash more heavily”.

Hong Kong shares also gained 0.75% after hitting a one-month low.

Japan’s Nikkei fell 0.6%, hurt by rising raw material prices.

The dollar rose 0.19% to 113.10 against the safe-haven yen after hitting a one-month low on Tuesday, while the euro fell 0.22% to $1.1566. The dollar index was up 0.19% at 94.15.

The benchmark 10-year US Treasury yield rose 2.4 basis points to 1.4728% after touching a six-week low of 1.4150% on Tuesday.

Euro zone bond yields also rose, with Germany’s 10-year yield, the benchmark for the bloc, up one basis point to -0.29%, slightly above a seven-week low of -0.299% touched on Tuesday.

Brent crude futures were up 0.44% at $85.16 a barrel after rising 1.6% on Tuesday.

US West Texas Intermediate (WTI) crude futures rose 0.1% to $84.19 a barrel, up 2.7% on Tuesday.

Gold and bitcoin have been the primary beneficiaries of the market turmoil, with gold rising nearly 3.5% to $1,826 an ounce in a week and bitcoin hovering at $66,778 after hitting a record high of $68,564 the day before.

Editing by Michael Perry, Sam Holmes and Angus McSwan

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