World Shares Up Despite Wall St. Losses05/17 05:13
Shares advanced in Europe and Asia on Tuesday despite mounting doubts over
the U.S. economic outlook that gave some benchmarks on Wall Street another day
(AP) -- Shares advanced in Europe and Asia on Tuesday despite mounting
doubts over the U.S. economic outlook that gave some benchmarks on Wall Street
another day of losses.
Signs of progress in China's effort to bring outbreaks of coronavirus under
control appeared to be outweighing concern over weaker than expected U.S. and
Chinese economic data.
Investors also are watching for comments by Federal Reserve officials that
might provide insight into the U.S. economic outlook and future policy moves.
"Markets remain in fight or flight mode while rolling the dice on recession
odds," Stephen Innes of SPI Asset Management said in a report. He added that,
"traders seem to be in the mood to stay bearish until proven otherwise.
However, there is still a lingering risk- on tone despite horrific Chinese
Germany's DAX picked up 1.3% to 14,144. and the CAC 40 in Paris gained 1.1%
to 6,419.08. Britain's FTSE 100 added 0.6% to 7,506.09. The future for the S&P
500 jumped 0.9% and the contract for the Dow industrials was 0.7% higher.
Those gains followed a strong showing in Asia, where Hong Kong's Hang Seng
jumped 3.2% to 20,590.99.
In Tokyo, the Nikkei 225 climbed 0.4% to 26,659.75. South Korea's Kospi rose
0.9% to 2,620.44.
Australia's S&P/ASX 200 added 0.3% to 7,115.50 while the Shanghai Composite
index was 0.7% higher, at 3,093.70.
Markets are trying to gauge how companies and consumers are dealing with
higher prices and whether central banks can help ease the problem. On Wall
Street, the major indexes have been slipping since early April.
On Monday the S&P 500 fell 0.4% to 4,008.01. It's coming off of a six-week
losing streak. The Dow Jones Industrial Average eked out a gain, rising 0.1% to
The tech-heavy Nasdaq fell 1.2% to 11,662.79.
Technology stocks were among the biggest losers. Apple fell 1.1%. Big tech
companies, with their pricey values, tend to push the broader market both up or
down. The sector has been a particularly heavy weight as investors worry about
high inflation and rising interest rates.
Spirit Airlines rose 13.5% after JetBlue said it would make a hostile offer
for the budget carrier after Spirit rebuffed its earlier bids.
Defense contractor ManTech jumped 15% after investment firm Carlyle Group s
aid it will buy the defense contractor.
The Federal Reserve is gradually pushing its benchmark short-term interest
rate off its record low near zero, where it spent most of the pandemic. It also
said it may continue to raise rates by double the usual amount at upcoming
meetings. Investors are concerned that the central bank could cause a recession
if it raises rates too high or too quickly.
Lingering supply chain problems continue to feed inflation, and China's
recent COVID-19 lockdowns have raised concerns that they may worsen. Russia's
war against Ukraine has made already high energy prices even more volatile,
which could also draw out rising inflation.
U.S. crude oil prices rose 3.4% Monday and are up more than 50% for the
year. Natural gas prices rose 3.8% and have more than doubled in 2022.
On Tuesday, U.S. benchmark crude oil shed 22 cents to $113.98 per barrel in
electronic trading on the New York Mercantile Exchange. Brent crude, the
pricing basis for international trading, picked up 6 cents to $114.30 per
The Commerce Department is due to release its retail sales report for April
later Tuesday. Home Depot and Walmart will report their latest financial
results. Target will report its results on Wednesday.
In currency trading, the dollar rose to 129.35 Japanese yen from 129.11 yen
late Monday. The euro was at $1.0458, up from $1.0436.