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Global stocks are mixed as investors wait for US inflation numbers

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Global stocks were mixed on Wednesday as investors waited for data on US inflation and upcoming corporate earnings to be released.

Shares fell in Paris, London, Tokyo and Sydney but rose in Shanghai and Frankfurt.

The prices of oil and other energy sources have recently increased, as have the costs of other commodities. Meanwhile, semiconductor shortages have slowed the production of many high-value industrial goods such as cars and consumer electronics.

The US Department of Labor is due to release its September Consumer Price Index later Wednesday.

It is a measure of how inflation is putting cost pressure on consumers. More information on inflationary pressures for businesses will come on Thursday when the Labor Ministry releases its producer price index.

Investors will see how rising prices can affect consumer spending when the Commerce Department releases its retail sales report for September on Friday.

The German DAX gained 0.3% to 15,197.28 while the CAC 40 in Paris slipped 0.2% to 6,537.59. The UK FTSE 100 lost 0.4% to 7,101.10.

But US futures rose slightly. Dow Industrials and S&P 500 contracts rose 0.1%.

In Asia, shares rose in Shanghai after customs data showed exports increased in September, although imports grew at a much slower pace. The Shanghai Composite Index jumped 0.4% to 3,561.76.

Tokyo’s Nikkei 225 index fell 0.3% to 28,140.28 and Sydney’s S & P / ASX 200 edged down 0.1% to 7,272.50. Seoul’s Kospi gained 1% to 2,944.41.

Hong Kong markets have been closed as a precaution due to an approach typhoon.

China’s producer price index is due on Thursday. Economists forecast an increase of more than 10% year-on-year, down from 9.5% in August.

Customs data released on Wednesday showed that China’s exports rose 28.1 percent in September to $ 305.7 billion. This was slightly faster than the 26% increase recorded in August, and better than economists’ forecasts. Imports rose 17.6% to $ 240 billion, down from 33% the previous month.

On Tuesday, the main Wall Street indices hovered between small gains and losses for much of the day on Wall Street, before sales picked up steam in the final minutes of trading. The S&P 500 slipped 0.2%. The Dow Jones Industrial Average fell 0.3% and the Nasdaq fell 0.1%.

Smaller company stocks, an indicator of confidence in economic growth, outperformed the market as a whole, pushing the Russell 2000 Index up 0.6%.

The 10-year Treasury yield fell to 1.57% from 1.60% on Friday night. The bond market was closed Monday for Columbus Day.

Markets have been turbulent for weeks as investors try to figure out how the economy will continue to recover, with COVID-19 remaining a threat and rising inflation can hurt consumer spending and business finances.

The The IMF said on Tuesday it forecasts global growth this year of 5.9%, against a projection of 6% growth made in July. He said the change reflected continuing supply chain disruptions in industrialized countries and deadly disparities in immunization rates between rich and poor countries.

The next round of earnings reports will give Wall Street a clearer picture of how businesses are doing in the last quarter amid an increase in COVID-19 cases. It will also provide a better understanding of how they expect to behave during the rest of the year.

S&P 500 companies are expected to post 27.6% annual profit growth for the July-September quarter, according to FactSet. This is down from the 28.1% growth estimated by analysts in July.

JPMorgan Chase will release the banks’ results on Wednesday. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday.

In other exchanges, US benchmark crude oil lost 17 cents to $ 80.47 per barrel in electronic trading on the New York Mercantile Exchange. It gained 12 cents to $ 80.64 a barrel on Tuesday.

Brent crude, the international standard, fell 20 cents to $ 83.22 a barrel.

The US dollar slipped to 113.52 Japanese yen from 113.59 yen on Tuesday night. The euro went from $ 1.1530 to $ 1.1560.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


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