Stock market today: Global stocks mixed on concern about U.S. economy weakening

BEIJING –

Global inventory markets had been blended Tuesday after a report that confirmed development in service industries is slowing stoked concern the U.S. financial system is weakening.

London, Shanghai, Paris and Hong Kong retreated. Tokyo gained and Wall Street futures had been blended. Oil costs declined greater than $1 per barrel.

Wall Street’s benchmark S&P 500 index misplaced 0.2% on Monday after an trade group’s May index of exercise in development, hospitality and different companies fell to a three-year low. That conflicted with hopes raised by information final week that confirmed unexpectedly sturdy hiring, suggesting a possible U.S. recession introduced on by rate of interest hikes is likely to be farther away.

“Weakness is emerging and that should be more noticeable in the coming months,” Edward Moya of Oanda mentioned in a report.

In early buying and selling, the FTSE 100 in London was off lower than 0.1% at 7,594.30. The CAC 40 in Paris was up lower than 0.1% at 7,201.48 and the DAX in Frankfurt was up lower than 0.1% at 15,975.26.

On Wall Street, futures for the S&P 500 and the Dow Jones Industrial Average had been little-changed.

In Asia, the Shanghai Composite Index fell 1.2% to three,195.34 and the Hang Seng in Hong Kong shed 0.2% to 19,072.42.

The Nikkei 225 in Tokyo gained 0.9% to 32,506.78 after authorities information confirmed Japanese wages rose 1% over a yr earlier in April however development slowed from the earlier month’s 1.3%.

The S&P ASX 200 in Sydney shed 1.2% to 7,129.60 after Australia’s central financial institution lifted its benchmark rate of interest by 0.25 proportion factors to 4.1% and warned additional rises may comply with. That got here after inflation was stronger than anticipated at 6.8% within the January-March quarter.

India’s Sensex misplaced 0.2% to 62,653.68. New Zealand and Jakarta superior whereas Singapore and Bangkok declined. South Korean markets had been closed for a vacation.

The majority of Wall Street shares sank Monday after a weekslong rally carried Wall Street to an 10-month excessive.

The Dow fell 0.6% and the Nasdaq composite slipped 0.1% after the Institute for Supply Management reported its service trade index declined to 50.3 from April’s 51.9 on a 100-point scale on which numbers above 50 present exercise growing.

Apple fell 0.8% after unveiling a long-rumoured headset that may place its customers between the digital and actual world. It will price $3,500 when it’s launched early subsequent yr.

Traders are nervous fee hikes by the Federal Reserve and central banks in Europe and Asia to chill inflation that was at multidecade highs will push the worldwide financial system right into a recession. They hope indicators of slowing U.S. exercise will immediate the Fed to postpone or cut back one other potential fee improve at its assembly this month.

The U.S. authorities is because of launch an replace on inflation subsequent week forward of the Fed assembly.

Even if the Fed places off a fee hike this month, Wall Street is betting on one other improve in July after officers study extra information.

High rates of interest led to 3 high-profile U.S. financial institution failures and one in Switzerland that rattled monetary markets. Manufacturing additionally has been weakening.

Last week’s information confirmed that U.S. employers unexpectedly accelerated hiring in May, whereas will increase in staff’ wages diminished. That helped propel Wall Street to the brink of a “bull market,” or a rise of 20% within the S&P 500 over its mid-October low.

In vitality markets, benchmark U.S. crude misplaced US$1.11 per barrel to $71.04 per barrel in digital buying and selling on the New York Mercantile Exchange. The contract rose 41 cents to $72.15 on Monday. Brent crude, the value foundation for worldwide oil buying and selling, sank $1.05 to $75.66 per barrel in London. It superior 58 cents the earlier session to $76.71.

The greenback fell to 139.45 yen from Monday’s 139.63 yen. The euro gained to $1.0729 from $1.0715.