Asia Business

Indian mobile payments giant Paytm will launch a share buyback, it said Tuesday, offering investors little more than a third of what they paid just over a year ago in the country’s then-biggest IPO.

Paytm’s shares have nosedived 75 percent since its $2.5 billion flotation in November 2021, demonstrating the risks of overpriced share offers in loss-making tech firms.

Its market debut came in the midst of an IPO frenzy in Asia’s third-largest economy last year, with start-ups attracting billions of dollars in investment in a bright spot in the Covid-battered economy.

But the shares nosedived 27 percent on their first day of trading due to concerns about losses, dropping further in subsequent months before settling to trade at a quarter of their IPO value.

Paytm said it will buy shares back at 810 rupees ($9.80) each, a steep 62 percent discount to the IPO price of 2,150 rupees, but a 50 percent premium on Tuesday’s closing price.

Founder Vijay Shekhar Sharma, once named India’s youngest billionaire, has dropped off Forbes’ list of 100 richest Indians after his personal net worth — $2.4 billion at the IPO price — eroded in line with his company’s stock price.

The stock collapse raises concerns for Paytm’s biggest shareholders, which include Softbank, Alibaba, Berkshire Hathaway and Canada Pension Plan Investment Board, many of which are also grappling with a global tech stock meltdown.

“We value our shareholders and their journey with us in the public markets,” Sharma said in a statement, promising that the $103 million buyback “will be immensely beneficial for our stakeholders and will drive long-term shareholder value”.

The firm remains deeply in the red, reporting a net loss of 5.7 billion rupees in the quarter ended September 30, despite a 76 percent jump in revenues.

But in a disclosure to stock exchanges, it insisted it was “on a clear path to deliver cash flow profitability”.

Paytm’s platform was launched in 2010 and quickly became synonymous with digital payments in a country traditionally dominated by cash transactions.

It has benefited from the government’s efforts to curb the use of cash — including the demonetisation of nearly all banknotes in circulation five years ago — and most recently, from the pandemic.

Indian shop owners, taxi and rickshaw drivers and other vendors accept payments as low as 10 rupees ($0.13) using Paytm’s ubiquitous blue-and-white QR code stickers.

Merchant payments rose 37 percent year-on-year to $28 billion in the months of October and November, the company said in a business update released Monday.

More than 84 million customers used Paytm’s diversified marketplace and payments app in the months of October and November, the company said, up from 80 million in the quarter ended September 30.

Stocks surged while the dollar dropped Tuesday as US inflation slowed more than expected, opening the way for the Federal Reserve to reduce the tempo of interest rate hikes.

US consumer prices rose at an annual pace of 7.1 percent in November, down from 7.7 percent in October, according to Labor Department data.

The consumer price index (CPI) is a closely-watched measure of inflation and was forecast by analysts to come in at 7.3 percent. 

The bigger-than-expected drop should come as a relief to monetary policymakers after wholesale inflation proved hotter than expected last week.

“The key takeaway from the report at first blush is that overall inflation is cooling and that the Fed should be convinced to temper the pace of its rate hikes and perhaps place a lower ceiling on its terminal rate,” said market analyst Patrick O’Hare at Briefing.com.

The central bank is widely expected to lift interest rates 50 basis points Wednesday — a slowdown from the previous four 75-point hikes. 

Lower inflation and interest rates are positive for businesses, and stock prices in Europe surged after the US inflation data was released.

While they later gave up part of those gains, London ended the day up 0.8 percent, Frankfurt 1.3 percent and Paris 1.4 percent.

Wall Street’s main indices jumped more than two percent at the opening bell, but gave up some of those gains as the morning wore on.

The Dow stood up 0.7 percent in late morning trading.

“In summary, Santa has delivered a nice enough package to the Fed, who can now celebrate the Christmas with more peace knowing that inflation is moving in the direction that they want with plenty of tail wind behind,” said Naeem Aslam, chief market analyst at Avatrade.

The prospect of the Fed slowing interest rate hikes was not positive for the US dollar, however, which lost more than one percent against its main rival currencies before cutting losses.

The weak dollar helped oil prices jump more than three percent, with Brent crude rising back above $80 per barrel.

Elsewhere, China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

Ahead of the Wall Street open, United Airlines unveiled an order of 100 new Boeing 787 Dreamliners with options for an additional 100 jets.

Shares in Boeing climbed 0.9 percent, but United Airlines tumbled 5.7 percent.

And the US Securities and Exchange Commission charged disgraced cryptocurrency tycoon Sam Bankman-Fried with defrauding customers of billions of dollars.

– Key figures around 1630 GMT –

New York – Dow: UP 0.7 percent at 34,235.03 points

EURO STOXX 50: UP 1.7 percent at 3,986.83

London – FTSE 100: UP 0.8 percent at 7,502.89 (close)

Frankfurt – DAX: UP 1.3 percent at 14,497.89 (close)

Paris – CAC 40: UP 1.4 percent at 6,744.98 (close)

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

Euro/dollar: UP at $1.0658 from $1.0539 on Monday

Dollar/yen: DOWN at 134.96 yen from 137.66 yen

Pound/dollar: UP at $1.2392 from $1.2268

Euro/pound: UP at 86.05 pence from 85.78 pence

Brent North Sea crude: UP 3.6 percent at $80.76 per barrel

West Texas Intermediate: UP 3.4 percent at $75.66 per barrel

burs-rl/bp

Stocks surged while the dollar dropped Tuesday as US inflation slowed more than expected, opening the way for the Federal Reserve to reduce the tempo of interest rate hikes.

US consumer prices rose at an annual pace of 7.1 percent in November, down from 7.7 percent in October, according to Labor Department data.

The consumer price index (CPI) is a closely-watched measure of inflation and was forecast by analysts to come in at 7.3 percent. 

The bigger-than-expected drop should come as a relief to monetary policymakers after wholesale inflation came in hotter than expected last week.

“The key takeaway from the report at first blush is that overall inflation is cooling and that the Fed should be convinced to temper the pace of its rate hikes and perhaps place a lower ceiling on its terminal rate,” said market analyst Patrick O’Hare at Briefing.com.

The central bank is widely expected to lift interest rates 50 basis points Wednesday — a slowdown from the previous four 75-point hikes. 

Lower inflation and interest rates are positive for businesses, and stock prices in Europe surged after the US inflation data was released, with London up 1.0 percent, Paris 2.1 percent, and Frankfurt 2.2 percent in afternoon trade.

Wall Street’s main indices jumped at the opening bell, with the Dow climbing 2.1 percent. The S&P 500 rose 2.6 percent and the tech-heavy Nasdaq 3.6 percent.

“In summary, Santa has delivered a nice enough package to the Fed, who can now celebrate the Christmas with more peace knowing that inflation is moving in the direction that they want with plenty of tail wind behind,” said Naeem Aslam, chief market analyst at Avatrade.

The prospect of the Fed slowing interest rate hikes was not positive for the US dollar, however, which lost more than one percent against its main rival currencies.

Elsewhere, China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

Ahead of the Wall Street open, United Airlines unveiled an order of 100 new Boeing 787 Dreamliners with options for an additional 100 jets.

Shares in Boeing climbed 1.4 percent and United Airways 1.2 percent as trading got underway.

And the US Securities and Exchange Commission charged disgraced cryptocurrency tycoon Sam Bankman-Fried with defrauding customers of billions of dollars.

– Key figures around 1430 GMT –

London – FTSE 100: UP 1.0 percent at 7,519.85 points

Frankfurt – DAX: UP 2.2 percent at 14,614.89

Paris – CAC 40: UP 2.1 percent at 6,788.81

EURO STOXX 50: UP 2.5 percent at 4,018.36

New York – Dow: UP 2.1 percent at 34,708.92

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

Euro/dollar: UP at $1.0660 from $1.0539 on Monday

Dollar/yen: DOWN at 134.82 yen from 137.66 yen

Pound/dollar: UP at $1.2430 from $1.2268

Euro/pound: DOWN at 85.75 pence from 85.78 pence

Brent North Sea crude: UP 2.1 percent at $79.66 per barrel

West Texas Intermediate: UP 1.9 percent at $74.58 per barrel

burs-rl/bp

An auction for development rights to an eastern Indonesian archipelago of more than 100 islands has been delayed until January, Sotheby’s said, days after backlash broke out over the sale. 

The Widi Reserve is part of the Coral Triangle, the most biodiverse marine area on Earth, which passes through six countries, including the Philippines, Papua New Guinea and the Solomon Islands.

The rights were due to go under the hammer in New York last Thursday but the sale has now been pushed back to late January, according to the famous auction house.

Zackary Wright, Sotheby’s Asia-Pacific vice president, told AFP the sale was delayed because of “overwhelming interest” and to give buyers “more time… to work through due diligence”.

But the move came after stinging criticism from environmental groups that said selling the development rights would harm the untouched paradise island chain.

“The islands are a sea migration route with mangrove forests and corals — a perfect zone for ecosystem regeneration,” Greenpeace Indonesia campaigner Afdillah Chudiel told AFP.

“That area should be protected for the conservation, not for tourism purposes.”

Parid Ridwanuddin, a campaigner for conservation group Walhi, said the auction’s claim that the islands were “uninhabited” showed ignorance towards the culture of Indonesia’s maritime people.

“The so-called uninhabited islands have ecological and cultural functions for the local people. They use the islands for planting their food,” he said.

“They really need these islands.”

PT Leadership Islands Indonesia (LII), a Bali-based development firm that holds 70-year management rights to the islands and is the seller in the auction, said that it planned to build on less than 0.005 percent of the reserve.

LII is advertising the archipelago as a chance to build luxurious resorts and homes across 17 islands, with the potential for a 1,000-metre private airstrip.

But Maritime Affairs and Fisheries Ministry spokesperson Wahyu Muryadi told AFP the company had not acquired a business development permit and the islands could not be owned by foreigners or traded.

The company said it did not have the permit yet “because it is not currently using the waters” for business activity. 

No estimated sale price for the rights has been given by the auction house or the company.

Indonesia has one of the most extensive coral reef systems in the world and hosts more than 17,000 islands that are home to a dizzying array of exotic wildlife.

Stock markets mostly climbed Tuesday before the release of key US inflation data later in the session.

The November consumer price index (CPI) figures follow Friday’s forecast-beating print on US wholesale inflation, which dented hopes the Federal Reserve would scale back the size of its next interest rate hikes.

The central bank is widely expected to lift interest rates 50 basis points Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will peak and when they will start to come down.

“I think CPI will be important but not necessarily for this meeting, for which a 50 basis-point hike is well flagged, but rather it will help determine the extent of further tightening,” said Mitul Kotecha, of TD Securities.

“Don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 meetings,” said National Australia Bank’s Ray Attrill.

Elsewhere, China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

Ahead of the Wall Street open, United Airlines unveiled an order of 100 new Boeing 787 Dreamliners with options for an additional 100 jets.

And the US Securities and Exchange Commission charged disgraced cryptocurrency tycoon Sam Bankman-Fried with defrauding customers of billions of dollars.

– Key figures around 1215 GMT –

London – FTSE 100: UP 0.4 percent at 7,475.26 points

Frankfurt – DAX: UP 0.8 percent at 14,421.53

Paris – CAC 40: UP 0.7 percent at 6,697.02

EURO STOXX 50: UP 1.0 percent at 3,959.22

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

New York – Dow: UP 1.6 percent at 34,005.04 (close)

Euro/dollar: UP at $1.0541 from $1.0539 on Monday

Dollar/yen: DOWN at 137.41 yen from 137.66 yen

Pound/dollar: UP at $1.2290 from $1.2268

Euro/pound: UP at 85.96 pence from 85.78 pence

Brent North Sea crude: UP 0.6 percent at $78.47 per barrel

West Texas Intermediate: UP 0.4 percent at $73.49 per barrel

China has filed a dispute with the World Trade Organization over US restrictions on chip exports, Beijing’s commerce ministry said in a statement late Monday, accusing Washington of threatening global supply chains.

The United States in October announced new export controls aimed at restricting China’s ability to buy and manufacture high-end chips with military applications, complicating Beijing’s push to further its own semiconductor industry and develop advanced military systems.

The moves include export restrictions on some chips used in supercomputing as well as stricter requirements on the sale of semiconductor equipment.

The aim is to prevent “sensitive technologies with military applications” from being acquired by China’s military, intelligence and security services, the US Commerce Department said in October.

However, China’s foreign ministry claimed Tuesday that the United States has “repeatedly used national security as an excuse to interfere in the normal operation of international trade”.

“All countries should stand up and not let Washington’s unilateralism and protectionism go unchecked,” foreign ministry spokesman Wang Wenbin said at a routine briefing.

“This concerns the stability of the global trade system and more importantly, international justice.”

China’s Ministry of Commerce on Monday had accused the United States of “obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain”, as well as violating international trade rules and engaging in “protectionist practices”.

The WTO dispute is intended to defend China’s “legitimate rights and interests”, the ministry said in its statement, urging Washington to “give up zero-sum thinking”.

The two superpowers have long faced off over a range of issues including technology, trade, Hong Kong, Taiwan and human rights.

Chinese leader Xi Jinping and US President Joe Biden pledged to repair frayed relations at a summit in Bali, Indonesia last month.

Days before the latest chip controls, the Pentagon added 13 more Chinese firms including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology to a blacklist of military-linked entities.

Markets were mixed Tuesday as nervous investors sat tight ahead of key US inflation data and a Federal Reserve policy decision but fresh pledges by China to open up from zero-Covid offered support.

The region was given a positive lead after Wall Street’s three main indexes raced out of the traps Monday, with analysts citing a survey by the central bank that showed inflation expectations falling.

The November consumer price index figures later in the day follow Friday’s forecast-beating print on wholesale inflation, which dented hopes the Fed could take a more dovish tilt in its monetary-tightening campaign.

The central bank is then widely expected to lift interest rates 50 basis points on Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will peak and when they will start to come down.

“I think CPI will be important but not necessarily for this meeting, for which a 50 basis point hike is well flagged, but rather it will help determine the extent of further tightening and give clues to the terminal rate,” Mitul Kotecha, of TD Securities, said.

“However, we think the risks are asymmetric in that a higher CPI print will likely have a bigger impact than a lower print.”

But the Wall Street Journal reported that there were disagreements within the policy board about the way forward, with doves trying to limit the economic pain as they bring inflation down, while hawks want a tougher line on fighting prices by weakening the jobs market.

“In this light, don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 (policy) meetings after a widely expected 50 basis points fund rate hike this week,” said National Australia Bank’s Ray Attrill.

Hong Kong rose after authorities announced a further easing of the city’s Covid rules, while Tokyo, Sydney, Singapore, Wellington, Bangkok and Jakarta were all well up.

However, Shanghai dipped along with Seoul, Taipei, Manila and Mumbai.

London, Paris and Frankfurt edged up at the open.

“It’s been a do-nothing day as investors take stock before the onslaught of a series of high-risk events,” said SPI Asset Management’s Stephen Innes.

China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Meanwhile, top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

London – FTSE 100: UP 0.1 percent at 7455.50

Euro/dollar: UP at $1.0551 from $1.0539 on Monday

Dollar/yen: DOWN at 137.46 yen from 137.66 yen

Pound/dollar: UP at $1.2274 from $1.2268

Euro/pound: UP at 85.96 pence from 85.87 pence

West Texas Intermediate: UP 1.4 percent at $74.21 per barrel

Brent North Sea crude: UP 1.6 percent at $79.21 per barrel

New York – Dow: UP 1.6 percent at 34,005.04 (close)

Asian markets mostly rose Tuesday, with nervous investors sitting tight ahead of key US inflation data and a Federal Reserve policy decision but fresh pledges by China to open up from zero-Covid offering support.

The gains across the region came after Wall Street’s three main indexes raced out of the traps Monday, with analysts citing a survey by the central bank that showed inflation expectations falling.

The November consumer price index figures later in the day follow Friday’s forecast-beating print on wholesale inflation, which dented hopes the Fed could take a more dovish tilt in its monetary-tightening campaign.

The central bank is then widely expected to lift interest rates 50 basis points on Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will end and when they will start to come down.

“It’s all going to depend on CPI numbers, whether the Fed is going to pivot or not,” Xi Qiao, at UBS Group AG, told Bloomberg Television.

“With the current inflation situation, a lot of the fundamental challenges that we have right now are going to go into 2023.”

But the Wall Street Journal reported that there were disagreements within the policy board about the way forward, with doves trying to limit the economic pain as they bring inflation down, while hawks want a tougher line on fighting prices by weakening the jobs market.

“In this light, don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 (policy) meetings after a widely expected 50 basis points fund rate hike this week,” said National Australia Bank’s Ray Attrill.

In early Asian business, Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Wellington, Taipei, Manila and Jakarta were all well up.

China’s shift away from its economically damaging zero-Covid policy continued to lift sentiment as the world’s number two economy opens up.

And on Monday, the country’s ambassador to the United States said: “In the near future I believe that measures will be further relaxed and international travel will become easier.”

Meanwhile, top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,946.09 (break)

Hong Kong – Hang Seng Index: UP 0.6 percent at 19,585.54

Shanghai – Composite: UP 0.1 percent at 3,183.39

Euro/dollar: UP at $1.0547 from $1.0539 on Monday

Dollar/yen: UP at 137.75 yen from 137.66 yen

Pound/dollar: UP at $1.2276 from $1.2268

Euro/pound: UP at 85.92 pence from 85.87 pence

West Texas Intermediate: UP 0.9 percent at $73.82 per barrel

Brent North Sea crude: UP 0.9 percent at $78.67 per barrel

New York – Dow: UP 1.6 percent at 34,005.04 (close)

London – FTSE 100: DOWN 0.4 percent at 7,445.97 (close) 

China has filed a dispute with the World Trade Organization over US restrictions on chip exports, Beijing’s commerce ministry said in a statement late Monday, accusing Washington of threatening global supply chains.

The United States in October announced new export controls aimed at restricting China’s ability to buy and manufacture high-end chips with military applications, complicating Beijing’s push to further its own semiconductor industry and develop advanced military systems.

The moves include export restrictions on some chips used in supercomputing as well as stricter requirements on the sale of semiconductor equipment.

The aim is to prevent “sensitive technologies with military applications” from being acquired by China’s military, intelligence and security services, the US Commerce Department said in October.

But China’s Ministry of Commerce on Monday accused the United States of “obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain”, as well as violating international trade rules and engaging in “protectionist practices”.

The WTO dispute is intended to defend China’s “legitimate rights and interests”, the ministry said in its statement, urging Washington to “give up zero-sum thinking”.

The two superpowers have long faced off over a range of issues including technology, trade, Hong Kong, Taiwan and human rights.

Chinese leader Xi Jinping and US President Joe Biden pledged to repair frayed relations at a summit in Bali, Indonesia last month.

Days before the latest chip controls, the Pentagon added 13 more Chinese firms including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology to a blacklist of military-linked entities.

Wall Street stocks surged Monday while European and Asian markets dropped as investors braced for interest rate decisions this week from major central banks, including the Federal Reserve.

The dollar generally rose against its main rivals, while oil prices rebounded following sharp falls last week.

Analysts expect the Fed and the European Central Bank to announce rate hikes at their meetings this week.

And the Bank of England is on course for a ninth straight increase as policymakers try to bring down inflation from the highest levels in decades.

“Following a softer session in Asia, European markets are on edge, opening the week lower ahead of a critical few days,” said Victoria Scholar, head of investment at Interactive Investor.

“The ECB, the Fed and the Bank of England are expected to raise rates by 50 basis points each as the pace of tightening looks set to slow,” Scholar added.

The half-point jumps will still be steep rises, however, as central banks struggle to cool the pace of price increases, particularly in energy and food.

London, Frankfurt and Paris all closed lower. 

Wall Street stocks ended higher, as bargain hunters moved in following losses at the end of last week.

The Dow Jones Industrial Average jumped 1.6 percent and the S&P 500 closed 1.4 percent up.

Ahead of the Fed’s policy meeting, investors are set to digest US inflation data due Tuesday.

“It will be a fitting hump day on Wednesday, because the (inflation) data and the Fed decision are big humps the market needs to get over if it wants to make a run at a year-end rally,” said market analyst Patrick O’Hare at Briefing.com.

“If either, or both, disappoint in a meaningful way, then a year-end rally becomes a more challenging proposition.”

Traders are also keeping an eye on developments in China as it moves away from a zero-Covid policy that has hammered its economy, the world’s second largest after the United States.

The shift comes after widespread protests following nearly three years of strict controls.

Uncertainty surrounding the strength of China’s demand recovery has hit oil prices hard, with crude futures shedding more than 10 percent last week, but they rebounded on Monday.

“The gradual easing of Chinese Covid restrictions is… expected to lead to a further upswing in demand,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

But investors are wary of whether the relaxation of restrictions will lead to a swift rebound as Covid cases are expected to jump.

“The recent volatility in crude oil highlights the ongoing questions over whether the Chinese economy is truly ready to return or on the cusp of yet another series of restrictions,” said Joshua Mahony, senior market analyst at online trading platform IG.

– Key figures around 2140 GMT –

New York – Dow: UP 1.6 percent at 34,005.04 (close)

New York – S&P 500: UP 1.4 percent at 3,990.56 (close)

New York – Nasdaq: UP 1.3 percent at 11,143.74 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,921.82 (close)

London – FTSE 100: DOWN 0.4 percent at 7,445.97 (close) 

Frankfurt – DAX: DOWN 0.5 percent at 14,306.63 (close)

Paris – CAC 40: DOWN 0.4 percent at 6,650.55 (close)

Tokyo – Nikkei 225: DOWN 0.2 percent at 27,842.33 (close)

Hong Kong – Hang Seng Index: DOWN 2.2 percent at 19,463.63 (close)

Shanghai – Composite: DOWN 0.9 percent at 3,179.04 (close)

Euro/dollar: DOWN at $1.0539 from $1.0546

Dollar/yen: UP at 137.66 yen from 136.57 yen

Pound/dollar: UP at $1.2268 from $1.2262

Euro/pound: DOWN at 85.87 pence from 85.90 pence

West Texas Intermediate: UP 3.0 percent at $73.17 per barrel

Brent North Sea crude: UP 2.5 percent at $77.99 per barrel

burs-rl-bys/bgs