Sehar Timings Mar 29 - Ramazan 18

Lahore
LHR
04:36 AM
Karachi
KHI
05:12 AM
Islamabad
ISB
04:38 AM
Peshawar
PWR
04:42 AM
Quetta
QTA
05:07 AM

News

Stock markets lower on eve of US inflation data

August 9, 2022 09:32 PM


Stock markets were lower and the dollar fell on Tuesday as investors nervously awaited the release of key US inflation data later this week, traders said.

If the data, scheduled for publication on Wednesday, came in above analysts' forecasts, the markets could enter into a sharp sell-off, analysts warned.

With inflation already at the highest level in 40 years, expectations are growing that further monetary tightening by the world's major central banks could go too far and tip the global economy into recession.

The inflation data "could effectively set the mood for the rest of the summer," said OANDA analyst, Craig Erlam.

"That seems quite dramatic, but if we fail to see a drop in the headline rate... it could really take the wind out of the sails of stock markets as it would be very difficult for the (US Federal Reserve) to then hike by anything less than 75 basis points in September," the expert said.

The US central bank has already raised borrowing costs by three-quarters of a percentage point twice in recent months in a bid to tame runaway prices.

Swissquote Bank analyst Ipek Ozkardeskaya said the recent drop in energy and commodity prices "should have a cooling effect... but higher labour costs could keep inflation sticky at undesirably high levels".

Oil prices rose, but remain around six-month lows as recession fears mount and investors fret over the impact on demand.

The markets are also keeping an eye on Iran nuclear talks after the European Union submitted a "final text" at negotiations to salvage a 2015 deal.

An agreement could open the way for Tehran to resume sales of crude on international markets, partly filling the gap left by the ban on Russian exports following the invasion of Ukraine.

Edward Moya, analyst at OANDA trading group, said "it seems unlikely a breakthrough will happen anytime soon.

"Tehran seems like they are willing to negotiate, but an imminent decision to agree to the EU's proposal seems unlikely", he said.

- Key figures at around 1335 GMT -

New York - Dow: DOWN 0.1 percent at 32,810.74 points

London - FTSE 100: FLAT at 7,489.00

Frankfurt - DAX: DOWN 1.1 percent at 13,543.98

Paris - CAC 40: DOWN 0.4 percent at 6,499.27

EURO STOXX 50: DOWN 0.9 percent at 3,723.17

Tokyo - Nikkei 225: DOWN 0.9 percent at 27,999.96 (close)

Hong Kong - Hang Seng Index: DOWN 0.2 percent at 20,003.44 (close)

Shanghai - Composite: UP 0.3 percent at 3,247.43 (close)

Euro/dollar: UP at $1.0242 from $1.0194 Monday

Pound/dollar: UP at $1.2111 from $1.2079

Euro/pound: UP at 84.57 pence from 84.35 pence

Dollar/yen: DOWN at 134.96 yen from 134.98 yen

Brent North Sea crude: UP 0.8 percent at $97.44 per barrel

West Texas Intermediate: UP 1.0 percent at $91.64 per barrel



Most Read

  1. Man murders young sister by smothering her with pillow in Toba Tek Singh Man murders young sister by smothering her with pillow in Toba Tek Singh
  2. Aitchison College students, parents stage protest against principal’s resignation Aitchison College students, parents stage protest against principal’s resignation
  3. Five Chinese among six killed in Shangla suicide bombing Five Chinese among six killed in Shangla suicide bombing
  4. Sahiba meets her father for the first time Sahiba meets her father for the first time
  5. Maaz Safder regrets 4-year relationship with wife Saba Maaz Safder regrets 4-year relationship with wife Saba
  6. ‘Khaie's incredible ending receives rave reviews and big applause ‘Khaie's incredible ending receives rave reviews and big applause

Opinion

  1. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  2. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  3. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay

  4. Global race: China will reduce its unnecessary expenses
    Global race: China will reduce its unnecessary expenses

    By Ali Ramay

  5. Channer Pir: The Great Saint of Cholistan
    Channer Pir: The Great Saint of Cholistan

    By Dr Asif Channer

  6. Literate the Religious Illiterate
    Literate the Religious Illiterate

    By Dr Asif Channer