Wall Street shows gains ahead of a week in earnings reports from major tech companies.
Dow Jones Industrials futures were up 0.9% on Monday, while S&P futures were up 0.8%.
Investors are looking to corporate earnings for clues about how inflation and rising interest rates are shaping the global economy. Alphabet, Amazon, Apple, Facebook parent company Meta, Coca-Cola and General Motors are among the companies reporting earnings this week.
Big tech and other high-growth companies are looking to slow the economy and keep inflation under control with a series of aggressive rate hikes by the Federal Reserve. Expected to raise points. That’s three times the size of a normal rate hike, and the fourth consecutive increase of 0.75%.
In Asia, Hong Kong’s benchmark plunged 6.4% on Monday as disappointment over the lack of new policy initiatives from the Chinese Communist Party Congress overshadowed reports that the second-largest economy grew at a faster pace last quarter. did.
A day after Japan’s central bank was reportedly moved again to stop the yen from depreciating, the dollar rose close to 150 yen before settling.
The UK’s FTSE 100 rose 0.6% after former Prime Minister Boris Johnson announced he would not run for Conservative leader. Former Treasury Secretary Rishi Sunak is now a front-runner to replace Liz Truss. She resigned last week after her tax-cut economic package caused financial market turmoil.
France’s CAC 40 rose 1.9% in early trading, while Germany’s DAX rose 2%.
Beijing’s report that China’s economy gained momentum last quarter beat expectations, up from 0.4% in the previous quarter, but as the country grappled with repeated city shutdowns to combat the virus outbreak. , it was one of the slowest expansions in decades.
There have been no new initiatives to boost the market since the Communist Party Congress, which allowed Xi Jinping, the most powerful leader in decades, to set policies at will. The ruling party has nominated his seven-member standing committee, made up of Xi’s allies, and added free enterprise supporters like Premier Li Keqiang to the party five years before his first party congress. was removed from the second place of
Xi wants to expand the Communist Party’s role in business and technological development. It warned that greater control over entrepreneurs who create jobs and wealth would slow growth, which had already been slowing for a long time.
Hong Kong’s Hang Seng Index plunged 6.4% to 15,180.69, its lowest level since 2006.
Shares of prominent Chinese companies Tencent, Baidu and JD.com all fell more than 10%.
The Shanghai Composite Index fell 2.0% to 2,977.56.
Xi has also shown no signs of any plans to change the draconian “no coronavirus” strategy that has weighed on business and trade. He said there would be no change to his policy of straining relations with Washington and its Asian neighbors.
Japan’s benchmark Nikkei 225 rose 0.3% to close at 26,974.90. Australia’s S&P/ASX 200 rose 1.5% to 6,779.40. South Korea’s Kospi rose 1.0% to 2,236.16.
Wall Street ended the week with a broad rally, with technology stocks, retailers and healthcare companies supporting a large part of the rally.
The S&P 500 was up 2.4%, registering a weekly gain of 4.7%. This is his biggest rise since June. The Dow is up 2.5% for him and the Nasdaq Composite is up 2.3% for him. The Russell 2000 Index rose 2.2%.
In currency trading, the US dollar rose to 148.97 yen from 147.65 yen. The Bank of Japan was reported to have stepped in on Friday to support the yen after the dollar climbed above the 150-yen level. Dollar fell after reported intervention, but rebounded.
The euro fell from 98.62 cents to 98.31 cents.
Dollar is stronger as US Federal Reserve hikes interest rates to fight inflation. The strengthening against the yen and other currencies has pushed up import costs and debt service costs, increasing inflationary pressures in these countries.
In energy trading, benchmark US crude fell $1.08 to $84.03 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international benchmark, fell from $2.99 to $90.51 a barrel.
Kageyama reported from Tokyo. Ott reported from Washington.
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