Bangkok — Stock prices rose in Europe after a mixed session in Asia on Monday. Hong Kong’s Hang Seng Index fell 5% after the neighboring city of Shenzhen was ordered to close to fight the worst COVID-19 outbreak in China in two years.
Benchmarks rose in Frankfurt, Paris and Tokyo, with US futures higher. Oil prices have fallen against the backdrop of uncertainty about the Ukrainian war.
Germany’s DAX rose 2.8% to 14,003.93 and Paris’ CAC 40 rose 1.7% to 6,367.58. The UK’s FTSE 100 rose 0.3% to 7,178.48.
The Dow Jones Industrial Average has risen 1% in the future, and this week’s trading has made a positive start. The future of the S & P 500 was 0.7% higher.
The outbreak of the virus that is widespread in China exacerbates concerns about supply chain disruptions from both pandemics and wars.
Shenzhen, an important manufacturing and technology hub with 17.5 million people, is home to some of China’s most prominent companies, including telecommunications equipment manufacturer Huawei Technologies Ltd., electric vehicle brands BYD Auto, Ping An Insurance Co. and Tencent Holding. WeChat message service.
Foxconn, a supplier of Apple and other electronics brands, said it had shut down its Shenzhen factory line due to a shutdown. In a notice to the Taiwan Stock Exchange, Hon Hai Precision Industry, the world’s largest consignment manufacturing company, said it did not expect the suspension to have a significant impact on its business.
Hon Hai shares fell 1% on Monday.
The Hang Seng Index fell 5.4%, but regained its ground and fell 5% at 19,531.66. The exchange’s technology index fell 11%.
The Shanghai Composite Index fell 2.6% to 3,223.53. Shenzhen’s small market A-share index fell 2.9%.
The number of infections in mainland China is low compared to other countries and Hong Kong, which reported more than 32,000 new cases on Sunday. However, Beijing’s “zero tolerance” strategy has led to the blockade of the entire city to find and quarantine all infected.
In other Asian markets, Tokyo’s Nikkei 225 Index rose 0.6% to 25,307.85 and Australia’s S & P / ASX 200 rose 1.2% to 7,149.40. South Korea’s Kospi fell 0.6% to 2,645.65.
The central bank’s efforts to combat the crisis and inflation in Ukraine continue to be the focus of most markets.
Russian troops hoped that residents of other besieged cities could pave the way for new diplomatic negotiations to evacuate more civilians and deliver emergency supplies to them, the capital of Ukraine. Continued the campaign to occupy.
Round 4 talks began on Monday between Ukrainian and Russian officials.
On Friday, the S & P 500 fell 1.3% and the Dow Jones Industrial Average fell 0.7%. The Nasdaq Composite Index gave up 2.2% and the Russell 2000 Index for SMEs fell 1.6%.
The global market is shaken by a dramatic reversal as investors struggle to guess how Russia’s invasion of Ukraine will affect the prices of oil, wheat and other commodities produced in the region. I’m out.
It raises the risk that the US economy may struggle under the toxic combination of sustained high inflation and stagnant growth. The Federal Reserve and other central banks counteract the highest inflation of their generation, while the Federal Reserve and other central banks try not to cause a recession by raising or premature interest rates too high. It is expected that interest rates will be raised at this week’s meeting to act in this way.
US stocks are about 10% below their peak earlier this year, but crude oil prices in 2022 are more than 40% higher.
US benchmark crude fell from $ 6.51 to $ 102.82 per barrel in electronic trading on the New York Mercantile Exchange. It soared from $ 3.31 to $ 109.33 per barrel on Friday.
Brent crude, the international price standard, fell $ 5.40 per barrel to $ 107.27.
The US dollar rose from 117.35 yen to 118.02 yen. The euro has risen from $ 1.0926 to $ 1.0952.
By Elaine Kurtenbach