MILAN (Businesshala) – World stocks held close to lows on Tuesday as rising oil prices will ease inflationary pressures, while the dollar strengthened on Friday ahead of US payrolls data that held key to the Federal Reserve’s next move. as seen.
MSCI’s gauge of global shares was down 0.1% at 0.823 GMT, but was higher than a three-month low during Asian trade.
European shares rose 0.3% as rising bank stocks and an encouraging earnings update from chipmaker Infineon calmed nerves after a tech-fueled sell-off on Monday. [.EU]
Wall Street was also set for a rebound, with futures 0.3% higher on the tech-heavy Nasdaq and the S&P 500 futures 0.2% higher.
Asian shares fell for the third day in a row, with heavy losses in the United States, where investors gave up on Big Tech as Facebook was hit by a nearly six-hour outage.
Facebook’s Frankfurt-listed stock rose 2.6% as its services came back online.
But investors remained cautious, on concerns that rising energy prices and supply chain disruptions could derail economic recovery, as the US Federal Reserve moves closer to easing its massive stimulus.
“More than anything, we are concerned about the impact of the impasse on the general indices, which is enormous,” said Giuseppe Cerselle, fund manager at Anthelia.
“We certainly prefer energy and materials, and we’re concerned about stocks with high multiples that know the price—what’s driving earnings growth (see Nasdaq),” he said.
Oil prices rose to their highest level in at least three years, boosting gains from the previous session that came after the world’s major oil producers decided to put a cap on crude oil supplies.
OPEC+ on Monday confirmed it will stick to its current production policy as demand for petroleum products has picked up again despite pressure from some countries to give a big boost to production.
Brent crude rose 0.6% to $81.75 a barrel, while US oil rose 0.4% to $77.94.
Vivek Dhar, Commodity Analyst at Commonwealth Bank of Australia said, “OPEC+ could inadvertently cause an even higher jump in oil prices, leading to an energy crisis that primarily reflects very tight gas and coal markets. “
“This potentially threatens the global economic recovery, just as global oil demand is picking up, as economies reopen due to rising vaccination rates,” Dhar said.
Markets in Asia were focused on whether property developer China Evergrande would offer any relief to investors looking for signs of property settlement here.
Trading in shares of the world’s largest indebted developer was halted on Monday, but other Chinese property developers were battling a rating downgrade due to concerns about their ability to repay debt.
The US dollar moved towards a one-year high versus key peers ahead of a major payroll report at the end of the week, which could boost the case for the Fed to launch stimulus stimulus as soon as next month.
“A positive number, which in this case would be in the region of 480,000 or higher, would give the Fed the final reason needed to begin tapering off its asset purchase program,” said ActiveTrades analyst Ricardo Evangelista. The dollar index, which tracks the greenback versus a basket of six currencies, was last up 0.1% at 93.9, while the euro fell 0.16% to $1.1602.
Gains in the dollar weighed on gold prices, which fell 0.7% to $1,757 an ounce on Monday after hitting an all-time high since September 23. [GOL/]