Stock markets are reeling, oil prices are falling

(FILES) Traders work on the floor of the New York Stock Exchange (NYSE) on June 27, 2022 in New York City. (Photo by Spencer Platt/Getty Images North America/Getty Images via AFP)

New York, United States (AFP) – Oil prices fell on Monday after surprisingly weak Chinese manufacturing data, while global stocks were mixed ahead of key jobs data, earnings and central bank announcements.

China’s closely watched purchasing managers’ index of manufacturing activity contracted in July as a result of weak demand and strict anti-Covid-19 measures imposed in parts of the country.

The index, a key gauge of manufacturing activity in the world’s second-largest economy, came in at 49.0 in July, down from 50.2 in June and below the 50-point mark that separates growth from contraction, according to the National Bureau of Statistics.

While blanket restrictions have been eased in major centers like Shanghai and Beijing, intermittent lockdowns in other cities and towns have kept businesses and consumers anxious with few signs of policy relaxation.

“Oil prices have been under pressure after the weak Chinese manufacturing numbers which really show the continuing impact of the shutdowns on the country’s economy,” said Ross Mold, director of investment at AJ Bell.

Oil traders also stand ready for another production decision by the OPEC+ group of major oil producing countries on Wednesday.

Wall Street shares closed slightly lower after a volatile session as oil-related stocks fell.

The FTSE 100 in London and the Paris CAC 40 were slightly lower while the Frankfurt DAX was flat at the close.

In corporate news, Asia-focused HSBC provided another boost with a “bullish” outlook, along with its intention to return to quarterly shareholder earnings next year.

HSBC shares jumped more than 6 percent in the British capital.

On Wall Street, Boeing stock rose 6.1 percent as it neared final regulatory approval to resume delivery of its 787 jet.

This week’s calendar includes the US jobs report for July, which will be closely scrutinized for clues on whether the Federal Reserve is expected to roll back its aggressive rate increases, as markets hope.

Major corporate earnings reports include those from oil giant BP and US car maker Uber, Japanese automaker Toyota and Chinese tech giant Alibaba.

The Bank of England is expected to raise interest rates by 0.5 percentage point on Thursday as it continues to combat rising inflation.

“The sharp hikes by the US Federal Reserve and the European Central Bank in July make it likely to trigger a significant rate hike,” Markets.com analyst Neil Wilson told AFP.

Global central banks are ramping up borrowing costs in an effort to deal with runaway consumer price inflation.

– Key numbers around 2040 GMT –
New York – Dow: down 0.1 percent at 32798.40 (close)

New York – Standard & Poor’s 500: down 0.3 percent at 4118.63 (close)

New York – Nasdaq: down 0.2 percentage point at 12368.98 (close)

London – FTSE 100: down 0.1 per cent at 7413.42 (close)

Frankfurt – Dax: FLAT at 13479.63 (close)

Paris – CAC 40: down 0.2% at 6436.86 (close)

EURO STOXX 50: up 0.1% at 3711.36 (close)

TOKYO – Nikkei 225: up 0.7 percent at 27993.35 (close)

Hong Kong – Hang Seng Index: up 0.1 percent at 20165.84 (close)

Shanghai – Composite: up 0.2% at 3259.96 (close)

EUR/USD: up at $1.0262 from $1.0220 on Friday

Pound/dollar: rose at $1.2255 from $1.2171

EUR/GBP: DOWN at 83.70 pence from 83.97 pence

Dollar / yen: down at 131.61 yen from 133.27 yen

Brent North Sea crude: down 3.8 percent to $100.03 a barrel

West Texas Intermediate: down 4.7% at $93.89 a barrel

© AFP

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