Indian indices could get a positive start on Monday amid strong Asian trends. Indices closed higher on Friday, buoyed by good support for buying in telecom, financials and auto stocks. Stocks rallied on Monday, although questions remain about how long it will be possible to keep the bear market in stock markets at bay due to high inflation, tightening monetary policy and recession risk. Stocks in Japan, Australia, Shanghai, Hong Kong and South Korea rose.
June 27, 2022 08:05:47 IST
Australian stocks boost gains as financial health pushes miners ahead
Australian stocks soared on Monday, posting strong gains, as fears of a recession trembled on investors’ impending rate hikes, while strong iron ore prices buoyed miners.
The S&P/ASX 200 Index was up 1.5% at 6,676.5 by 1:06 GMT, extending gains into the third session. Investors were also inspired by sharp gains in global equities on Friday, as the recent fall in commodity prices eased fears of rising inflation and the prospect of interest rate hikes.
June 27, 2022 08:05:12 IST
Copper prices in London are rising in line with Chinese demand expectations
Copper prices in London rose on Monday as easing COVID-19 restrictions for China’s biggest metals consumer sparked hopes of a recovery in demand, although fears of a slowdown in the global economy amid rapid interest rate cuts limited gains. Three-month copper on the London Metal Exchange rose 0.9% to $8,452.50 a tonne by 0156 GMT after falling to $8,122.50 in the previous session, its lowest level since February 2021. The most traded August copper contract in Shanghai remained at 64,430 yuan ($9,627.63) a ton.
Jun 27, 2022 07:52:34 IST
Oil falters as traders watch G-7 and fear recession
Oil teetered near $107 a barrel as investors watched developments at the Group of Seven leaders’ meeting amid fears of a recession weakening demand hung in the market.
West Texas Intermediate bounced back and forth between gains and losses after gaining 3.2% on Friday. The US benchmark nonetheless posted its first retrospective weekly loss since April. The G-7 pledges full support to Ukraine in its defense against Russia and is considering a price cap on the country’s oil.
Oil is heading for its first monthly decline since November as fears of a global slowdown mount as central banks hike interest rates to combat rising inflation. However, retail prices for products like gasoline have not fallen nearly as fast as oil due to a lack of fuel production capacity.
June 27, 2022 07:43:22 IST
Asian stocks boost Wall Street gains as oil spill dampens inflation concerns
Stocks in Asia rose on Monday on improved risk sentiment after Wall Street rallied late last week as oil prices eased and fears of persistent inflation and the associated aggressive Fed tightening died down.
Treasury yields remained subdued and the dollar remained at its lowest level in more than a week as investors continued to assess the prospect for US interest rate hikes and the potential for a recession.
Japan’s Nikkei rose 1.04%, while the Australian benchmark rose 1.69%.
Chinese blue chips rose 0.54% and Hong Kong’s Hang Seng rose 1.46%.
South Korean Kospi gained 1.65%.
The broadest Asia-Pacific stock index, the MSCI, rose 1.31%.
However, US stock futures are pointing to a 0.25% drop when those markets reopen. On Friday, the S&P 500 index was up more than 3%, contributing to almost 1% of Thursday’s gain.
June 27, 2022 07:31:32 IST
Inventories grow, the treasury is stable when oil falls
Stocks continued to gain on Monday, although questions remain about how long it will be possible to contain the stock bear market amid high inflation, monetary tightening and the risk of a recession.
Stocks in Japan, Australia and South Korea rose. US futures fell on Friday, following Wall Street’s rise of more than 3%, marking the best week for global equities this month.
Government bonds were stable. Yields retreated from their highs in June as growth fears came to the fore, with US 10-year rates remaining at 3.13%. Whether this means the end of the treasury bear market is also being hotly debated.
The dollar was little changed while posting only modest gains.
Oil fell to around $106 a barrel, which in turn eased demand concerns. Traders are also watching a summit of leaders of the Group of Seven, who want to pledge full support to Ukraine in its defense against Russian invasion. In addition, the G-7 is considering a price cap for Russian oil.
June 27, 2022 07:30:37 IST
Tokyo stocks open higher, tracking US gains
Tokyo stocks opened higher on Monday, extending strong rallies on Wall Street, where the weaker economic outlook eased expectations of central bank monetary tightening.
The benchmark Nikkei 225 index was up 1.02 percent, or 271.10 points, to 26,763.07 at the start of trade, while the broader Topix index was up 1.00 percent, or 18.60 points, to 1,885.32.
The dollar hit 135.00 yen in New York late Friday, compared to 135.17 yen.
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