BUSINESS

World shares are mostly up on the stock market today ahead of an update on US inflation

As investors awaited new information on US inflation after the most recent employment data sent conflicting messages about the condition of the economy, shares were mostly higher in Europe and Asia on Monday.

In Paris, London, Frankfurt, Hong Kong, and Shanghai, benchmarks increased. Sydney and Tokyo said no. Oil prices and US futures both decreased.

On Wednesday, the US government is expected to release data on consumer prices for June. Predictions predict for an annual rise of slightly over 3%, down from 4% in May.

 

Early on Monday, the DAX in Germany increased by 0.3% to 15,645.48, while the CAC 40 in Paris increased by 0.4% to 7,138.87. The FTSE 100 in Britain increased 0.2% to 7,268.25.

 

The S&P 500 future was down by 0.2%, while the Dow Jones Industrial Average future was just under 0.1% lower. The S&P 500 dropped 0.3% on Friday, while the Dow dropped 0.6%. The Russell 2000 index of smaller firms increased 1.2% while the Nasdaq composite dipped 0.1%.

 

As GDP in the US and Europe continues to slow down under a bombardment of interest rate rises intended to quell excessive inflation, China announced on Monday that producer prices dropped 5.4% in June from a year earlier, down from a decline of 4.6% in May. The fact that consumer price inflation remained flat suggests that demand may be diminishing as the second-largest economy in the world’s activities declines.

 

China’s economy had an early boom in growth as the nation recovered from the COVID-19 pandemic-related setbacks, but this growth has now declined more quickly than anticipated.

 

“The releases of the latest indicators from China did little to quell concerns about the lethargic state of economic activity,” Tim Waterer of KCM Trade said in a report.He said, “With deflationary troubles brewing for the world’s second largest economy, one wonders how long it will be before the central bank steps in to provide something more meaningful on the stimulus side.”

 

Chinese investors often expect such market support in the face of weak data. Shanghai Composite index rose 0.2 percent to 3,203.70, while Hong Kong’s Hang Seng index increased by 0.6% to 18,479.72.

 

The Nikkei 225 in Tokyo fell by 0.6% to 32,189.73, while the Kospi in Seoul fell by 0.2% to 2,520.70. The S&P/ASX 200 index for Australia fell 0.5% to 7,004.00.

 

The SET in Bangkok increased by 0.3% while the Sensex in India grew by 0.1%.

 

As anticipated, US Treasury Secretary Janet Yellen’s journey to Beijing to heal fences came to a close on Sunday without any significant agreements or improvements in the countries’ tense relations.

 

Despite disagreements on a variety of topics, such as access to cutting-edge technology, Chinese territorial aspirations, and claims of human rights violations, Yellen indicated that ties were on a “surer footing” and that the two sides will continue to communicate.

 

After reports indicated the US employment market is still hot enough to keep the economy going but maybe not so hot that it stokes inflation much higher, Wall Street slid to a mixed finish on Friday. Last month, US companies created 209,000 jobs, down from 306,000 in May.

 

For instance, wage growth remained stable last month rather than dropping as predicted by experts. Workers would prefer the actual increase in average hourly wages of 4.4% above the forecasted increase of 4.2%, but Wall Street is concerned that the Fed would see the excessive pay rise as maintaining pressure on inflation.

 

“The expansion of jobs is slowing. Not at all unexpected given the many layoffs taking place all around the nation, according to Clifford Bennett of ACY Securities. In other words, despite the fact that employment growth is slowing, it is still far from sufficient to satisfy the Fed.

 

Whether the economy can negotiate the constrained route to avoid a protracted recession will have a significant impact. Even though the Federal Reserve increased interest rates significantly to reduce inflation, it must continue to expand.

 

In other trade on Monday, New York Mercantile Exchange electronic trading saw US benchmark crude oil drop 61 cents to USD 73.25 per barrel. On Friday, it increased by USD 2.06 to USD 73.86 per barrel.

 

Brent oil, which serves as the benchmark price for global trade, lost 60 cents to reach USD 77.87 a barrel.

 

From 142.17 Japanese yen, the US dollar increased to 142.50 yen. From USD 1.0967 to USD 1.0965, the euro decreased.

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