Global stocks rise on improving Chinese services data | Economic news

By JOE McDONALD, AP Business Writer

BEIJING (AP) — Global stock markets and Wall Street futures rose Monday after the slowdown in China’s service industries eased and reports indicated the Biden administration could lift U.S. tariffs. on certain Chinese imports.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong are progressing. Oil prices rose to stay near $120 a barrel.

A survey showed activity in China’s retail and other service industries declined in May, but at a slower pace than the previous month. Meanwhile, the Wall Street Journal reported that Washington plans to lift tariffs on Chinese-made solar panels and Commerce Secretary Gina Raimondo said President Joe Biden is “considering” ending other tariffs. rights.

“Some pockets of optimism may come from further easing of virus restrictions in Beijing,” IG’s Yeap Jun Rong said in a report.

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In early trading, the FTSE 100 in London rose 1.3% to 7,628.69 and the DAX in Frankfurt gained 0.7% to 14,554.83. The CAC 40 in Paris advanced by 0.9% to 6,545.79.

On Wall Street, the benchmark S&P 500 index futures contract rose 0.8% and that of the Dow Jones Industrial Average advanced 0.6%.

On Friday, the S&P 500 lost 1.6% for its eighth weekly decline in the past nine weeks. The Dow Jones fell 1% and the Nasdaq 2.5%.

Government data showed U.S. employers added 390,000 jobs in May, beating expectations of 322,500.

In Asia, the Shanghai Composite Index rose 1.3% to 3,236.37 after business news magazine Caixin said its monthly purchasing managers’ index for services rose to 41. 4 versus 36.2 in April on a 100-point scale where numbers below 50 show a contraction in activity.

The Hang Seng in Hong Kong gained 1.8% to 21,470.94 and the Nikkei 225 in Tokyo added 0.6% to 27,915.89. Korean markets were closed for a holiday.

Sydney’s S&P-ASX 200 fell 0.5% to 7,206.30. New Zealand markets were closed for a holiday.

India’s Sensex fell less than 0.1% to 55,716.30. Southeast Asian markets fell.

Wall Street traders are worried about the possibility that Federal Reserve interest rates aimed at cooling inflation that is at its highest level in four decades could tip the US economy into a recession.

Also on Friday, government data showed wages were lower than expected in May, which could reduce future upward pressure on prices. This would ease the pressure on the Fed for further rate hikes.

More than four out of five S&P 500 stocks fell. The biggest declines were in tech stocks.

Tesla fell 9.2% after U.S. safety regulators said more than 750 owners complained about cars suddenly stopping on the roads for no apparent reason while using their partially automated driving systems.

Benchmark U.S. crude rose 40 cents to $119.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $2 on Friday at $118.87. Brent crude, the price basis for international oil trade, advanced 35 cents to $120.07 a barrel in London. It closed $2.11 higher in the previous session at $119.72.

The dollar fell to 130.79 yen from 130.85 yen on Friday. The euro fell from $1.0720 to $1.0745.

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