Global stock markets gained Wednesday after Wall Street sank on weak U.S. housing sales and a profit warning by a prominent social media brand.
London, Frankfurt, Shanghai and Hong Kong advanced. Oil prices rose more than $1 per barrel to stay above $110.
Wall Street stock index futures were mixed. On Tuesday, the benchmark S&P 500 SPX,
“The overall mood in equity markets remains largely downbeat,” Jun Rong Yeap of IG said in a report.
Investors are on edge about the impact of interest rate hikes in the United States and other Western economies to cool surging inflation, as well as Russia’s war on Ukraine and a Chinese economic slowdown.
Investors dumped social media stocks. Snap SNAP,
The S&P is down 18% from its Jan. 3 high, putting it on the brink of a bear market, or a 20% decline from the previous top.
Homebuilders slumped after the government reported April sales of newly built homes plunged 26.9% from a year earlier. KB Home KBH,
The Kospi 180721,
India’s Sensex gave up 0.2% to 53,926.64. New Zealand, Singapore and Jakarta declined while Bangkok advanced.
On Wednesday, the Federal Reserve is due to give insight into its decision-making by releasing minutes of its latest policy meeting.
In energy markets, benchmark U.S. crude rose $1.28 to $111.05 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 52 cents on Tuesday to $109.77. Brent crude, the price basis for international oil trading, advanced $1.16 to $111.85 per barrel in London. It rose 14 cents the previous session to $113.56.
The dollar gained to 127.05 yen from Tuesday’s 126.82 yen. The euro declined to $1.0669 from $1.0693.