NEW YORK (AP) – Wall Street got off to a mixed start on Monday, with Treasury yields hitting their highest levels since the summer of 2019 as trading in the markets continues to be confused. Energy companies lagged far behind the rest of the market as the price of US crude fell more than 5%. The recent rise in energy prices amid the war in Ukraine has sparked fresh fears that inflation could get worse. The S&P 500 fluctuated between small gains and losses in the first few minutes of trading. The index is coming off its fourth week of losses in the last five.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
BANGKOK (AP) – Stocks rose in Europe after a mixed session in Asia on Monday, where Hong Kong’s Hang Seng index fell 5% after neighboring Shenzhen was ordered to shut down to curb China’s worst COVID-19 outbreak fight outbreak for two years.
Benchmarks rose in Frankfurt, Paris and Tokyo and US futures were higher. Oil prices eased amid uncertainty surrounding the war in Ukraine.
People also read…
Germany’s DAX rose 2.8% to 14,003.93, while the CAC 40 in Paris rose 1.7% to 6,367.58. Britain’s FTSE 100 rose 0.3% to 7,178.48.
Futures for the Dow Jones Industrial Average are up 1%, boding a positive start to trading this week. The S&P 500 futures was 0.7% higher.
Spreading virus outbreaks in China are raising concerns about supply chain disruptions from both the pandemic and the war.
A major manufacturing and technology hub with a population of 17.5 million, Shenzhen is home to some of China’s best-known companies, including telecommunications equipment maker Huawei Technologies Ltd., electric car brand BYD Auto, Ping An Insurance Co. and Tencent Holding, operator of the popular WeChat intelligence service.
Foxconn, a supplier to Apple and other electronics brands, said it suspended factory lines in Shenzhen because of the shutdown. In a statement to the Taiwan Stock Exchange, listed company Hon Hai Precision Industry, the world’s largest contract manufacturer, said it does not expect the suspension to have a major impact on its business.
Hon Hai shares lost 1% on Monday.
The Hang Seng Index fell 5.4% but regained some lost ground to finish 5% lower at 19,531.66. The exchange’s tech index fell 11%.
The Shanghai Composite Index slipped 2.6% to 3,223.53. The A-share index in the smaller Shenzhen market lost 2.9%.
Authorities have restricted access to Shenzhen by halting bus services and said everyone in the city will undergo three rounds of testing after 60 new cases were reported on Sunday. All businesses except those supplying food, fuel and other necessities have been ordered to close or work from home.
Infection numbers in mainland China are low compared to other countries and Hong Kong, which reported more than 32,000 new cases on Sunday. But Beijing’s “zero tolerance” policy has led to entire cities being locked down to find and isolate any infected person.
Elsewhere in Asia, Tokyo’s Nikkei 225 index rose 0.6% to 25,307.85 and Australia’s S&P/ASX 200 rose 1.2% to 7,149.40. South Korea’s Kospi slipped 0.6% to 2,645.65.
The Ukraine crisis and central bank’s efforts to fight inflation remain a focus for most markets.
Russian forces continued their campaign to seize the Ukrainian capital, while residents of other besieged cities expressed hope that renewed diplomatic talks could pave the way for more civilians to be evacuated or evacuated.
A fourth round of talks between Ukrainian and Russian officials is expected on Monday to discuss, among other things, obtaining food, water, medicines and other much-needed supplies for cities under fire, said Ukraine’s presidential aide Mykhailo Podolyak.
On Friday, the S&P 500 fell 1.3% and the Dow Industrials lost 0.7%. The composite Nasdaq index slipped 2.2% and the Russell 2000 index of smaller companies slipped 1.6%.
Global markets have been rocked by dramatic reversals as investors struggle to gauge how Russia’s invasion of Ukraine will affect prices for oil, wheat and other commodities produced in the region.
This raises the risk that the US economy will be struggling under a toxic combination of persistently high inflation and sluggish growth. The Federal Reserve is expected to hike interest rates at its meeting this week as it and other central banks act to stamp out the highest inflation in generations while trying to avoid a recession by raising or lowering interest rates raise quickly.
U.S. stocks are about 10% off the highs set earlier this year, while crude oil prices are more than 40% higher for 2022.
U.S. benchmark crude fell $6.51 to $102.82 a barrel in electronic trading on the New York Mercantile Exchange. It rose $3.31 a barrel to $109.33 a barrel on Friday.
Brent crude, the standard for international pricing, fell $5.40 to $107.27 a barrel.
The US dollar rose to 118.02 Japanese yen from 117.35 yen. The euro rose to $1.0952 from $1.0926.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission.