Achi news desk-
Global stock markets fell mostly on Monday, as the recent high gave way to concern over rising geopolitical tensions and stubbornly high inflation according to traders
London, (UrduPoint / Pakistan Point News – 25th Mar, 2024) Global stock markets mostly retreated on Monday, as recent highs sparked concern over rising geopolitical tensions and stubbornly high inflation according to traders.
“Elevated tensions between Ukraine and Russia have ended the rally in equity markets seen last week,” said Russ Mould, investment director at AJ Bell.
“Investors were nervously watching transactions from the sidelines, especially as oil prices rose once again.” Moscow has stepped up its airstrikes on Kyiv, targeting key infrastructure in the wake of Ukraine’s attacks on Russian oil facilities.
Russia is a key oil producer, while the Gaza-Israel war has caused concerns about Middle East crude supplies. Adding to the complex geopolitical landscape, the recent attack on a Moscow concert hall on Friday left at least 137 people dead. The Kremlin declined to comment Monday on the IS group’s links to the massacre.
Oil prices are “a touch firmer this morning as traders react to the terrorist attack in Moscow over the weekend, amid uncertainty over who Russia will ultimately blame, and how they will ultimately respond away,” market analyst David Morrison told Trade Nation. He said Russian suggestions of Ukraine’s involvement in Moscow’s attack “serve to heighten tensions in the two-year-old war that has escalated as both sides fire missiles at each other, with energy infrastructure now a clear target.”
Stock markets have also taken a hit from worries about high inflation, even if it has fallen from four-decade highs and central banks are poised to start cutting interest rates.
“Optimism has been building around the prospect of interest rate cuts and a brighter economic outlook ahead, despite some uncertainty about stubborn US inflation,” said Susannah Streeter, head of money and markets at Hargreaves Lansdowne.
Traders awaited the release of key US inflation data on Friday.
After last week’s Federal Reserve projections for US interest rates indicated it would cut three times this year, traders are optimistic about the outlook for equities.
However, figures showing the US economy remains strong have raised concerns that the central bank may not be able to bring borrowing costs down as quickly as hoped, keeping a lid on sentiment . Those concerns were echoed by Atlanta Fed chief Raphael Bostic on Friday, when he said he sees inflation remaining sticky and expects just one rate cut this year, instead of the two he had previously forecast.
Eyes are now on the release of the personal consumption expenditure index (PCE), the Fed’s preferred inflation gauge, with traders hoping for a reading that shows price gains slowing further.
The report follows recent US data on consumer and producer prices, which came in higher than forecast.
Shares in Boeing climbed 1.6 percent in early trading in New York after the company announced Monday that CEO Dave Calhoun would step down as the aviation giant faces increased scrutiny after a series of safety incidents and manufacturing issues.
New York – Dow: DOWN 0.2 percent at 39,415.60 points
New York – S&P 500: DOWN 0.3 percent at 5,218.63
New York – Nasdaq Composite: DOWN 0.6 percent at 16,335.47
London – FTSE 100: DOWN 0.3 per cent at 7,907.80
Paris – CAC 40: DOWN 0.2 percent at 8,135.66
Frankfurt – DAX: UP 0.1 percent at 18,223.60
EURO STOXX 50: DOWN less than 0.1 per cent at 5,028.34
Tokyo – Nikkei 225: DOWN 1.2 percent at 40,414.12 (close)
Hong Kong – Hang Seng Index: DOWN 0.2 percent at 16,473.64 (close)
Shanghai – Composite: DOWN 0.7 percent at 3,026.31 (close)
Euro/dollar: UP at $1.0831 from $1.0812 on Friday
Dollar/yen: DOWN at 151.23 yen from 151.40 yen
Pound/dollar: UP at $1.2638 from $1.2601
Euro/pound: DOWN at 85.69 pence from 85.77 pence
Brent North Sea crude: UP 0.5 percent at $85.82 a barrel
West Texas Intermediate: UP 0.6 percent at $81.10 a barrel
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