BANGKOK (AP) — Global stock markets exhibited mixed performance on Tuesday, following a modest recovery in U.S. stocks from last week’s downturn.
In Europe, shares fell, with Germany’s DAX index declining by 1.3% to 18,935.34. The CAC 40 in Paris dropped 1.5% to 7,169.40, and Britain’s FTSE 100 lost 0.5%, settling at 8,065.62. Meanwhile, futures for the S&P 500 and the Dow Jones Industrial Average were down by 0.5%.
In Asia, trading conditions were more positive, with Tokyo’s Nikkei 225 rising 0.5% to 38,414.43 and Seoul’s Kospi gaining 0.1% to 2,471.95. Chinese stocks showed signs of recovery after initial losses, with the Shanghai Composite index climbing 0.7% to 3,346.01. Hong Kong’s Hang Seng Index also rebounded, adding 0.4% to 19,663.67.
Stephen Innes of SPI Asset Management noted, “The broader market sentiment remains cautious, with futures showing resilience even as reasonable fears of a looming global trade war cast a shadow over bolder directional moves.”
In India, the Sensex rose 0.3%, while Taiwan’s Taiex surged 1.3%. The SET index in Bangkok also gained 0.7%.
On Monday, the S&P 500 managed a 0.4% increase, marking its first gain in three days. The Dow Jones Industrial Average fell 0.1%, while the Nasdaq composite rose 0.6%. This recovery comes after a week where investors had seen the S&P 500 lose more than half of its post-election gains, which had surged nearly 4% following Donald Trump’s presidential victory.
Investor attention is now focused on potential appointments in Trump’s administration, particularly regarding the Treasury Secretary role. “Given the large U.S. budget deficit, investors will probably want to see a safe pair of hands being chosen,” remarked analysts from ING Economics.
Concerns about inflation under Trump’s policies have caused Treasury yields to rise, potentially complicating the Federal Reserve’s ability to cut interest rates to support economic growth and job creation.
Several major companies are set to report quarterly earnings this week, including Nvidia, which will announce its results on Wednesday. With a market value of nearly $3.5 trillion and a staggering 183% increase in stock price this year, Nvidia is under pressure to meet high analyst expectations. Other companies reporting include Lowe’s and Walmart on Tuesday, Target on Wednesday, and Deere on Thursday.
In commodity markets, benchmark U.S. crude oil fell by 27 cents to $68.90 per barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, the international standard, dropped 21 cents to $73.09 per barrel. The U.S. dollar weakened against the Japanese yen, trading at 153.76 yen, down from 154.67 yen, and the euro slipped to $1.0541 from $1.0599.
As the market navigates these dynamics, investors remain vigilant about the implications of political changes and economic indicators in the coming weeks.
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