World stocks mixed after US data offsets rate hike concerns

Published On: May 19, 2022Categories: Stocks & Shares1.4 min read

London and Frankfurt opened lower, Tokyo and Seoul advanced, while Shanghai declined

Global stock markets were mixed and Wall Street futures were lower Wednesday after positive US retail sales data helped to offset concern the Federal Reserve might consider more rate hikes to cool inflation.

London and Frankfurt opened lower. Tokyo and Seoul advanced, while Shanghai declined. Oil prices rose more than $1 to stay above $110 per barrel.

On Wall Street, the future for the S&P 500 index was down 0.4% after the market benchmark rose by 2% on Tuesday. That came after positive US retail sales data helped to offset worries about inflation and rate hikes.

The Fed will have to consider moving more aggressively if inflation that is running at a four-decade high fails to ease after earlier rate hikes, chair Jerome Powell said at a Wall Street Journal conference.

Expectations of rate hikes ticked higher due to Powell’s comments, but markets are shrugging it off and are in need of a breather after a selloff, Yeap Jun Rong of IG said in a report.

In early trading, the FTSE 100 in London fell less than 0.1% to 7,514.29 and the DAX in Frankfurt shed 0.1% to 14,170.91. The CAC 40 in Paris sank 0.3% to 6,413.78.

On Wall Street, the future for the Dow Jones Industrial Average was off 0.3%.

On Tuesday, the Dow rose 1.3% and the Nasdaq composite gained 2.8%.

Big tech stocks led the rally. Apple and Microsoft were among the biggest winners.

In Asia, the Shanghai Composite Index lost 0.3% to 3,085.96 while the Hang Seng in Hong Kong rose 0.2% to 20,644.28 after spending most of the day in negative territory.

The Nikkei 225 in Tokyo gained 0.9% to 26,911.20 after the government reported economic output shrank 0.2% in the first three months of 2022. That was stronger than expectations.

The Kospi in Seoul gained 0.2% to 2,625.98 and Sydney’s S&P-ASX 200 advanced 1% to 7,182.70.

About the Author: Jonathan Adams

Latest articles

Go to Top