Mixed global share, China wins on economy aid talks | Economic news

By YURI KAGEYAMA, AP Business Writer

TOKYO (AP) — Global equities were mixed on Wednesday, with European stocks advancing after a pullback in Asia, though mainland Chinese stocks rebounded as Beijing stepped up efforts to bolster confidence with pledges of increased support for the downturn in the economy.

US futures were higher and oil prices also rose, but modestly.

The focus was on energy markets. Gas prices jumped 24% in Europe and the euro weakened after Russia said it would cut supplies to Poland and Bulgaria.

Faith Birol, head of the Paris-based International Energy Agency, called Moscow’s move a “militarization of energy supply” and said the organization would support both countries while encouraging other European countries reduce their dependence on Russian oil and gas.

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“This decision increases the possibility of a near-term standoff between Russia and the rest of the EU over whether to respond to Russia’s request to pay for gas in roubles,” said Stephen Innes, managing partner at SPI. Asset Management.

The French CAC 40 gained 0.4% in early trading to 6,436.83. The German DAX edged up 0.3% to 13,803.24. Britain’s FTSE 100 rose 0.2% to 7,399.85. The Dow Jones industrials futures gained 1.1% while the S&P 500 added 1.0%.

In Asia, the Shanghai Composite Index gained 2.5% and the smaller Shenzhen benchmark jumped 4% after state media reported various efforts by the ruling Communist Party to counter the blow. to the economy by the pandemic shutdowns in dozens of cities and the resulting disruptions to trade and manufacturing. .

Among various measures taken by the central bank and other regulators, a meeting of the Central Committee for Financial and Economic Affairs chaired by President Xi Jinping on Tuesday supported the construction of infrastructure “contributing to the industrial development and national security of the China,” according to the Communist Party newspaper Global. Times reported.

Analysts said investors were watching the outcome of a meeting of the party’s powerful Politburo this week for new measures to spur slowing growth in the world’s second-largest economy.

“Given the downward pressure on the economy related to COVID, we expect further policy easing to support growth, and the government has recently stepped up policy support,” UBS’s Tao Wang said in a statement. a report.

Elsewhere in Asia, stocks followed an overnight rout on Wall Street.

Tokyo’s Nikkei 225 fell 1.2% to 26,386.63 after Japanese Prime Minister Fumio Kishida announced measures to help poor families and small businesses cope with rising prices and the currency weakening.

Little change was expected from a two-day central bank policy meeting that ends Thursday. The Bank of Japan has sent a clear message about keeping interest rates extremely low to encourage spending and investment and has periodically purchased Japanese government bonds, with the aim of keeping 10-year bond yields within a range of plus or minus 0.25%.

Elsewhere, South Korea’s Kospi fell 1.1% to 2,639.06 and Hong Kong’s Hang Seng was little changed at 19,946.36.

Australia’s S&P/ASX 200 index fell 0.8% to 7,261.20 as strong inflation data bolstered expectations that the central bank will continue with interest rate hikes.

The war in Ukraine, in addition to the risks of wider conflict, has pushed the already inflated prices of many commodities and commodities even higher, complicating the economic outlook and causing hardship for many businesses and consumers.

Earnings for industrial and retail companies are in focus for the rest of the week. The aircraft manufacturer Boeing publishes its results on Wednesday. Industry leader Caterpillar announces its results on Thursday, alongside McDonald’s and Amazon.

With the US Federal Reserve also poised to aggressively hike rates as it steps up its fight against inflation, traders are increasingly unwilling to bear the high prices they had paid for Microsoft, the company mother of Facebook, Meta, and other tech giants.

Several big tech companies are also due to report earnings this week, including Meta on Wednesday and Apple on Thursday.

In energy trading, benchmark U.S. crude gained 83 cents to $102.53 a barrel in electronic trading on the New York Mercantile Exchange. Its price rose 3.2% on Tuesday. Brent crude, the international price standard, took 94 cents to $105.56 a barrel.

In currency trading, the US dollar rose slightly to 127.93 Japanese yen from 127.23 yen on Tuesday night. The euro traded at $1.0621, down from $1.0639 and near a five-year low.

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