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Global stocks rebound after slide on growth worries

/ 07:09 PM March 26, 2019

People walk by an electronic stock board of a securities firm in Tokyo, Tuesday, March 26, 2019. Asian stock prices rebounded Tuesday after global markets slid on worries about U.S. and European economic growth. (AP Photo/Koji Sasahara)

BEIJING – Global stock prices rebounded Tuesday a slide on worries about U.S. and European economic growth.

In early trading, London’s FTSE 100 rose 0.1 percent to 7,187.13 and France’s CAC 40 added 0.1 percent to 5,268.04.

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Germany’s DAX was unchanged at 11,335.24.

In Asia, Tokyo’s Nikkei 225 gained 2.2 percent to 21,428.39 and Hong Kong’s Hang Seng was 0.1 percent higher at 28,566.91. The Shanghai Composite Index declined 1.5 percent to 2,997.10.

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On Wall Street, futures for the Standard & Poor’s 500 index and the Dow Jones industrial average were 0.4 percent higher.

Markets in Europe and Asia tumbled Monday as traders tried to make sense of pessimistic new outlooks on global growth. The S&P lost 0.1 percent, adding to losses from last week’s sell-off.

Traders were rattled by a drop in long-term bond yields, which many see as a warning sign of a possible recession.

“Worries about global growth are evident,” Shane Oliver of AMP Capital said in a report.

Despite that, “we see this year as being a decent year for share market returns,” said Oliver. He pointed to a shift by central banks toward easier monetary policy, China’s plans for economic stimulus and fading fears about the U.S.-Chinese tariff war.

Elsewhere in Asia, Seoul’s Kospi added 0.2 percent to 2,148.80 and Sydney’s S&P-ASX 200 was unchanged at 6,130.60. India’s Sensex gained 1.1 percent to 38,233.41 while benchmarks in New Zealand, Taiwan and Southeast Asia also rose.

European investors are uneasy about the uncertain outlook for Britain’s plan to leave the European Union.

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British lawmakers seized a measure of control over the process from Prime Minister Theresa May on Monday. That set up votes that could alter the course of Britain’s EU departure.

Worried investors have shifted money into bonds, sending yields lower. The yield on the 10-year U.S. Treasury slid to 2.40 percent from 2.45 percent late Friday. At one point, the yield had fallen to 2.38 percent, briefly triggering deeper declines in the stock indexes.

The 10-year Treasury yield is below the yield on the three-month Treasury bill, a worrying sign that in the past has preceded recessions. That occurred Friday.

APPLE TV: The company announced plans to launch a subscription TV service but failed to impress investors. Its stock slid 1.2 percent. The company did not say how much Apple TV Plus, which will be ad-free, will cost or when exactly it will debut. It will compete with big streaming services including Netflix and Amazon Video.

ENERGY: Benchmark U.S. crude gained 73 cents to $59.55 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 22 cents on Monday to close at $58.82. Brent crude, used to price international oils, rose 53 cents to $67.34 per barrel in London. It gained 6 cents the previous session to $66.81.

CURRENCY: The dollar gained to 110.40 yen from Monday’s 109.96 yen. The euro rose to $1.1317 from $1.1313. /gsg

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