Business

Global stocks rebound as Wall Street futures gain after holiday

BEIJING –


Global stocks rebounded Tuesday as Wall Street futures moved higher after a U.S. market holiday.


London and Frankfurt opened higher. Tokyo, Hong Kong and Sydney gained while Shanghai declined. Oil prices climbed above US$110 per barrel.


The future for Wall Street’s benchmark S&P 500 index was up 2% as U.S. markets prepared to reopen following a three-day weekend.


“The modest equity market recovery continues in Asia, thanks to U.S. index futures grinding higher,” Jeffrey Halley of Oanda said in a report.


In early trading, the FTSE 100 in London advanced 0.7% to 7,168.48. The DAX in Frankfurt added 1.3% to 13,439.23 and the CAC 40 in Paris was 1.9% higher at 6,030.80.


On Wall Street, the future for the Dow Jones Industrial Average was 1.7% higher.


On Friday, the S&P rose 0.2% but ended the week down 5.8% for its tenth drop in 11 weeks. That was its biggest weekly decline since March 2020 at the start of the global pandemic.


The Dow dipped 0.1% while the Nasdaq composite gained 1.4%.


In Asia, the Nikkei 225 in Tokyo added 1.8% to 26,246.31 while the Shanghai Composite Index lost 0.3% to 3,306.72. Hong Kong’s Hang Seng advanced 1.9% to 21,559.59.


The Kospi in Seoul was 0.7% higher at 2,408.93 and Sydney’s S&P-ASX 200 rose 1.4% to 6,523.80.


India’s Sensex opened up 1.9% at 52,569.30. New Zealand and Southeast Asian markets gained.


Investors worry efforts by U.S. and European central banks to cool inflation that is running at a four-decade high might derail global economic growth.


Japan and China, two of the three biggest economies, have avoided joining in rate hikes. On Monday, China’s central bank left its benchmark rates unchanged. The Bank of Japan stuck to its policy of near-zero interest rates last week despite concern that is weakening the yen’s exchange rate.


The S&P 500 has fallen by more than 20% from its Jan. 3 peak, putting it in what traders call a bear market.


Investors are looking for clues of Fed plans for possible additional rate hikes when Chair Jerome Powell speaks before congressional committees this week.


On Monday, European stock markets advanced. Shanghai, Tokyo and Seoul declined.


In energy markets, benchmark U.S. crude jumped $2.49 to $110.48 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oil trading, gained $1.70 to $115.83 per barrel in London.


The dollar edged up to 135.31 yen from Monday’s 135 yen. The euro gained to $1.0580 from $1.0491.

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