Stock markets today: Global stocks are mixed as Wall Street retreat deepens

TOKYO (AP) — Global stocks were mixed Wednesday as benchmarks returned to June levels following a selloff on Wall Street.

Oil prices rose, and US futures also rose.

Germany’s DAX fell 0.1% to 15,241.78, while Paris’ CAC40 index rose 0.1% to 7,082.75. In London, the FTSE 100 fell 0.1% to 7,621.77.

The S&P 500 futures index rose 0.4%, and the Dow Jones Industrial Average futures index rose 0.3%.

On Tuesday, the S&P 500 fell 1.5% and the Dow Jones Industrial Average fell 1.1%. The Nasdaq Composite fell 1.6%. September is on track to be the worst month of the year for the stock market as investors believe the Federal Reserve will keep interest rates high for longer than originally expected.

In Asian trading, Tokyo’s Nikkei stock average recovered from early losses to rise 0.3% to 32,371.90 yen. In Hong Kong, the Hang Seng rose 0.7% to $17,592.54. The Shanghai Composite Index rose 0.2% to 3,107.32.

In China, there are continuing concerns about Evergrande, a real estate developer with a large amount of debt. China’s real estate market crisis is hampering China’s economic growth and raising concerns about financial instability.

Evergrande’s Hong Kong-traded shares plunged 19% after an unconfirmed report from Bloomberg that Chinese police had placed founder Yan Huijia under residential surveillance. Shares in fellow debt-laden developer Country Garden Holdings fell 3.3%.

Australia’s S&P/ASX 200 index fell 0.3% to 7,030.30. In the Seoul market, the Kospi rose 0.1% to 2,465.07.

On Tuesday, the S&P 500 index fell 1.5%, its fifth decline in six days, to close at 4,273.53. The Dow Jones Industrial Average fell 1.1% to $33,618.88, and the Nasdaq Composite Index fell 1.6% to $13,063.61.

September has caused a 5.2% decline in the S&P 500 so far, on track to be the worst month of the year as the Fed solidifies that it will keep interest rates high for longer than expected. . That understanding has pushed bond market yields to their highest levels in more than a decade and pushed stocks and other investment prices lower.

story continues

The yield on the 10-year U.S. Treasury rose slightly to 4.55% from 4.54% late Monday. It is close to the highest level since 2007 and is up significantly from about 3.50% in May and 0.50% about three years ago.

An economic report on Tuesday showed consumer confidence was weaker than economists expected. This is concerning because strong spending by American households is a bulwark protecting the economy from a long-predicted recession.

Another report said new home sales across the country slowed last month than economists had expected, while a third found manufacturing industries in Maryland, Virginia and the Carolinas slumped for more than a year. This suggests that there is a possibility that the market is becoming firmer.

Although housing and manufacturing are feeling the brunt of high interest rates, the broader economy is holding up well, raising concerns that upward pressure on inflation remains. In response, the Fed announced last week that next year’s interest rate cuts are likely to be smaller than originally expected. The Fed has kept its key interest rate at its highest level since 2001 in an effort to bring inflation back on target.

In addition to high interest rates, many other concerns are also plaguing Wall Street. Most pressing is the threat of another U.S. government shutdown due to a stalemate on Capitol Hill and the potential shutdown of federal services across the country.

Wall Street also cited rising oil prices, unstable economies around the world, a strike by U.S. autoworkers that could further increase upward pressure on inflation, and U.S. student debt that could constrain household spending. Efforts are also being made to resume repayments.

“Indeed, this long and dirty list of developments is contributing to the anxiety and volatility in financial markets as a whole,” Stephen Innes of SPI Asset Management said in a commentary.

On Wall Street, most stocks fell on Tuesday under the pressure.

Big tech stocks tend to be most affected by high interest rates and were the most heavily weighted in the index. Apple fell 2.3% and Microsoft fell 1.7%.

Amazon fell 4% after the Federal Trade Commission and 17 state attorneys general filed antitrust lawsuits against the company. They accuse the e-commerce giant of using its dominant position to jack up prices on other platforms, overcharging sellers and stifling competition.

Oil prices rose and concerns about inflation intensified. Benchmark U.S. crude oil rose 98 cents to $91.37 a barrel early Wednesday. It rose 71 cents to $90.39 on Tuesday.

International standard Brent crude rose 62 cents to $93.05 per barrel.

The dollar rose to 149.04 yen from 149.03 yen. The euro fell from $1.0573 to $1.0568.

Elaine Kurtenbach, Associated Press