Stock markets fluctuate, oil prices fall

(FILES) Traders work on the floor of the New York Stock Exchange (NYSE) June 27, 2022 in New York City. (Photo by SPENCER PLATT / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

NEW YORK, USA (AFP) – Oil prices tumbled on Monday after unexpectedly weak manufacturing data from China, while global stocks were mixed ahead of key data on jobs, earnings and central bank announcements.

The closely watched China’s Purchasing Managers’ Manufacturing Index fell in July as a result of weak demand and stringent coronavirus lockdown measures in parts of the country.

The index, a key indicator of manufacturing activity in the world’s second-largest economy, stood at 49.0 in July from 50.2 in June, below the 50-point mark separating growth from contraction, according to the National Bureau of Statistics.

While major centers such as Shanghai and Beijing have eased broad restrictions, sporadic lockdowns in other cities and towns have businesses and consumers worried over slight signs of policy easing.

“Oil prices have come under pressure following weak Chinese manufacturing numbers that really show the continued impact of lockdowns on the country’s economy,” said Russ Mould, chief investment officer at AJ Bell.

Oil traders are also anticipating another decision from the OPEC+ group of major oil producers on Wednesday.

Wall Street shares closed slightly lower after a volatile session as oil-related stocks retreated.

The London FTSE 100 and the Paris CAC 40 edged slightly lower, while the Frankfurt DAX closed flat.

In corporate news, Asia-focused bank HSBC has given another boost to its bullish outlook, along with an intention to return to quarterly shareholder payouts next year.

HSBC shares jumped more than six percent in the British capital.

On Wall Street, Boeing stock rose 6.1% as it moved closer to final regulatory clearance to resume deliveries of its 787 jet.

The calendar for this week includes the US jobs report for July, which will be scrutinized for clues as to whether the Federal Reserve can be expected to roll back its aggressive rate hikes, as markets are hoping.

Key corporate earnings reports include oil giant BP, U.S.-based Uber, Japanese automaker Toyota and Chinese tech giant Alibaba.

The Bank of England is expected to raise interest rates sharply by 0.5 percentage points on Thursday as it continues to fight inflation.

“Sharp rate hikes by the US Federal Reserve and the European Central Bank in July make it more likely they will trigger a sharp rate hike,” Neil Wilson, an analyst with Markets.com, told AFP.

Global central banks are increasing borrowing costs in an attempt to cope with runaway consumer price inflation.

– Key figures around 20:40 GMT –
New York-Dow: DOWN 0.1% to 32,798.40 (close)

New York – S&P 500: DOWN 0.3% to 4118.63 (close)

New York-Nasdaq: 0.2% DOWN to 12,368.98 (close)

London – FTSE 100: 0.1% down to 7,413.42 (close)

Frankfurt – DAX: FLAT at 13,479.63 (close)

Paris – CAC 40: DOWN 0.2% to 6,436.86 (close)

EURO STOXX 50: up 0.1% to 3711.36 (close)

Tokyo – Nikkei 225: up 0.7% to 27,993.35 (close)

Hong Kong – Hang Seng Index: up 0.1% to 20,165.84 (close)

Shanghai – Composite: up 0.2% to 3259.96 (close)

EUR/USD: rose to $1.0262 from $1.0220 on Friday.

Pound/dollar: rose to $1.2255 from $1.2171.

Euro/lb: DOWN by 83.70p from 83.97p.

Dollar/yen: DOWN to 131.61 yen from 133.27 yen.

Brent North Sea Oil: DECLINE 3.8% to $100.03 per barrel

West Texas Intermediate: REDUCED 4.7% to $93.89 per barrel

© Agence France-Presse