US Futures and Oil Prices Gain
World stock market rally exhibited mixed performance on Monday, with European markets showing minimal movement, while concerns of a potential recession in the region kept investors cautious.
US futures recorded increases. Crude oil prices rose by more than $1 per barrel following the reconfirmation of Saudi Arabia and Russia’s commitment to maintaining cuts in oil supply exceeding 1 million barrels per day until year-end.
Stock Management While the Israel-Gaza Conflict Escalates
Late on Sunday, the Israeli military declared that it had surrounded Gaza City and effectively split the besieged coastal strip in two, marking an escalation in the ongoing conflict.
European markets displayed modest shifts, with Germany’s DAX losing 7 points to reach 15,180.02. The CAC 40 in Paris slipped by 0.1% to 7,041.12, and Britain’s FTSE 100 saw a minor decrease of less than 3 points to 7,415.13. Futures for the S&P 500 and the Dow Jones Industrial Average recorded a 0.1% increase.
Concerns Over Slowing Trending Stocks Growth
Recent surveys of factory managers indicated a decline in business activity, intensifying concerns about sluggish growth in major economies such as Germany and France.
In Asia, stocks surged on Monday, partly due to optimism regarding early interest rate cuts in the US. South Korean stocks jumped 5.7% to reach 2,502.37 after the government reinstated a ban on short-selling. Japan’s Nikkei 225 index gained 2.4% to reach 32,708.48, but concerns about slowing services activity in the country arose.
Bank of Japan’s and Hong Kong’s Monetary Policy
The Bank of Japan (BOJ) is gradually moving toward tightening its monetary policy, with BOJ Governor Kazuo Ueda stating that progress has been made toward reaching the inflation target. However, he clarified that the change did not raise the near-zero interest rate stance.
The Hang Seng in Hong Kong rose by 1.7% to reach 17,966.59, and the Shanghai Composite index increased by 0.9% to reach 3,058.41. Australia’s S&P/ASX 200 saw a 0.3% rise to reach 6,997.40. India’s Sensex gained 0.8%, and Bangkok’s SET increased by 0.3%.
Positive Week for Wall Street
On Friday, Wall Street had its most favourable week in nearly a year, with the S&P 500 rising by 0.9%. Meanwhile, the Dow industrials gained 0.7%, and the Nasdaq composite jumped 1.4%. Rising hopes that the Federal Reserve has completed its interest rate hikes to control inflation contributed to the mark stock price surge.
In currency trading, the US dollar strengthened against the Japanese yen, reaching 149.56 from 149.37 yen. The euro also saw an increase, reaching $1.0741, up from $1.0728.
Oil Prices and Currency Exchange Rates
Benchmark US crude oil increased by $1.43 to $81.94 per barrel in electronic trading on the New York Mercantile Exchange, following a decline to $80.51 per barrel on Friday. Brent crude, the global benchmark, climbed by $1.38 to reach $86.27 per barrel.
In a currency stock market rally, the US dollar strengthened against the Japanese yen, reaching 149.58 from 149.37 yen, while the euro rose to $1.0750 from $1.0728.
