Chinese Business

European stock markets slid Wednesday, with investors spooked over a deadly missile blast in Poland near the border with Ukraine.

London slid 0.3 percent, also on news that UK inflation spiked to a 41-year peak in October on rocketing energy bills and food prices.

Frankfurt fell 1.0 percent and Paris stocks sank 0.5 percent after Asia closed mostly in the red. 

The dollar rose against the yen, but slid against the euro and pound.

“Reports of missile strikes in Poland on Tuesday naturally caused a shudder in the markets,” said Craig Erlam, senior market analyst at OANDA trading platform.

“The prospect of a sudden and unexpected escalation in the war in Ukraine, particularly involving a NATO state, doesn’t bear thinking about but we were almost forced to and under the circumstance, the reaction was fairly modest,” he added.

Two people were killed on Tuesday when at least one missile hit a village in NATO member Poland near the Ukrainian border, during a mass Russian bombardment aimed at civilian infrastructure inside Western-backed Ukraine.

Market jitters were calmed somewhat by officials, including US President Joe Biden and NATO Secretary General Jens Stoltenberg, discounting the likelihood of a deliberate Russian attack and pointing to the possibility that it was a Ukrainian air defence missile that missed a Russian barrage.

“The welcome assumption is that the incident should not induce any NATO-led military response,” said market analyst Patrick O’Hare at Briefing.com.

Back in Britain, official data showed that UK inflation surged in October to 11.1 percent, the highest level since 1981 in a worsening cost-of-living crisis.

The grim news came on the eve of a gloomy UK government budget that is likely to ramp up taxes and slash spending.

“The UK is reeling from yet another super-hot inflation reading as soaring food and energy prices take their toll on household budgets,” said Hargreaves Lansdown analyst Susannah Streeter.

This year, the Ukraine war has massively contributed to worldwide inflation soaring to the highest level in decades. Prices are up also on pandemic-fuelled supply constraints.

Rocketing inflation has forced central banks to raise interest rates by big amounts, risking a global recession.

There has been some relief from data showing US consumer prices rose much less than expected in October, suggesting months of monetary tightening by the Federal Reserve was kicking in.

This was followed by data Tuesday showing a below-forecast reading on wholesale prices.

On Wednesday, data showed US retail sales jumped more than expected in October, pointing to resilience in spending in the face of price pressures.

The uptick came after sales flatlined the month before, as American consumers grappled with surging costs that have made everything from groceries to clothing more expensive.

“The key takeaway from the report is that retail sales, which are not adjusted for inflation, were still fairly solid in October, underscoring that consumer spending continues to hold up fairly well, supported by continued low levels of unemployment,” said Briefing.com’s O’Hare.

But retailer Target warned on Wednesday that consumers are cutting back on discretionary items.

“In the latter weeks of the quarter, sales and profit trends softened meaningfully, with guests’ shopping behavior increasingly impacted by inflation, rising interest rates and economic uncertainty,” Target CEO Brian Cornell said.

Target shares tumbled 15 percent as the company missed profit expectations in its third quarter and sales only nudged higher.

Wall Street was mostly lower in late morning trading, with the S&P 500 down 0.5 percent and the Nasdaq Composite off 1.2 percent.

The Dow was flipping in and out of loss.

– Key figures around 1530 GMT –

New York – Dow: UP less than 0.1 percent at 33,604.43 points

EURO STOXX 50: DOWN 0.8 percent at 3,882.78

London – FTSE 100: DOWN 0.3 percent at 7,351.19 (close) 

Frankfurt – DAX: DOWN 1.0 percent at 14,234.03 (close)

Paris – CAC 40: DOWN 0.5 percent at 6,607.22 (close)

Tokyo – Nikkei 225: UP 0.1 percent at 28,028.30 (close)

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 18,256.48 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,119.98 (close)

Euro/dollar: UP at $1.0408 from $1.0349 on Tuesday

Pound/dollar: UP at $1.1884 from $1.1865 

Dollar/yen: UP at 139.43 yen from 139.28 yen

Euro/pound: UP at 87.56 pence from 87.22 pence

Brent North Sea crude: DOWN 1.8 percent at $92.14 per barrel

West Texas Intermediate: DOWN 2.5 percent at $84.75 per barrel

burs-rl/pvh

European stock markets slid Wednesday, with investors spooked over a deadly missile blast in Poland near the border with Ukraine.

London dipped 0.1 percent, also on news that UK inflation spiked to a 41-year peak in October on rocketing energy bills and food prices.

Frankfurt fell 0.8 percent and Paris stocks sank 0.4 percent after Asia closed mostly in the red. 

The dollar rose against the pound, but fell against the euro and yen, while oil retreated.

“Reports of missile strikes in Poland on Tuesday naturally caused a shudder in the markets,” said Craig Erlam, senior market analyst at OANDA trading platform.

“The prospect of a sudden and unexpected escalation in the war in Ukraine, particularly involving a NATO state, doesn’t bear thinking about but we were almost forced to and under the circumstance, the reaction was fairly modest,” he added.

Two people were killed on Tuesday when at least one missile hit a village in NATO member Poland near the Ukrainian border, during a mass Russian bombardment aimed at civilian infrastructure inside Western-backed Ukraine.

Market jitters were calmed somewhat by officials, including US President Joe Biden and NATO Secretary General Jens Stoltenberg, discounting the likelihood of a deliberate Russian attack and pointed to the possibility it was a Ukrainian air defence missile.

“The welcome assumption is that the incident should not induce any NATO-led military response,” said market analyst Patrick O’Hare at Briefing.com.

Back in Britain, official data showed that UK inflation surged in October to 11.1 percent, the highest level since 1981 in a worsening cost-of-living crisis.

The grim news came on the eve of a gloomy UK government budget that is likely to ramp up taxes and slash spending.

“The UK is reeling from yet another super-hot inflation reading as soaring food and energy prices take their toll on household budgets,” said Hargreaves Lansdown analyst Susannah Streeter.

This year, the Ukraine war has massively contributed to worldwide inflation soaring to the highest level in decades. Prices are up also on pandemic-fuelled supply constraints.

Rocketing inflation has forced central banks to raise interest rates by big amounts, risking a global recession.

There has been some relief from data showing US consumer prices rose much less than expected in October, suggesting months of monetary tightening by the Federal Reserve was kicking in.

This was followed by data Tuesday showing a below-forecast reading on wholesale prices.

On Wednesday, data showed US retail sales jumped more than expected in October, pointing to resilience in spending in the face of price pressures.

The uptick came after sales flatlined the month before, as American consumers grappled with surging costs that have made everything from groceries to clothing more expensive.

“The key takeaway from the report is that retail sales, which are not adjusted for inflation, were still fairly solid in October, underscoring that consumer spending continues to hold up fairly well, supported by continued low levels of unemployment,” said Briefing.com’s O’Hare.

But retailer Target warned on Wednesday that consumers are cutting back on discretionary items.

“In the latter weeks of the quarter, sales and profit trends softened meaningfully, with guests’ shopping behavior increasingly impacted by inflation, rising interest rates and economic uncertainty,” Target CEO Brian Cornell said.

Target shares tumbled 14 percent as the company missed profit expectations in its third quarter and sales only nudged higher.

Wall Street opened lower, with the Dow dipping 0.1 percent, while the S&P 500 shed 0.4 percent and the Nasdaq Composite fell 0.9 percent.

– Key figures around 1330 GMT –

London – FTSE 100: DOWN 0.1 percent at 7,360.73 points

Frankfurt – DAX: DOWN 0.8 percent at 14,265.60

Paris – CAC 40: DOWN 0.4 percent at 6,612.71

EURO STOXX 50: DOWN 0.6 percent at 3,891.91

New York – Dow: DOWN 0.1 percent at 33,546.58

Tokyo – Nikkei 225: UP 0.1 percent at 28,028.30 (close)

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 18,256.48 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,119.98 (close)

Euro/dollar: UP at $1.0401 from $1.0349 on Tuesday

Pound/dollar: UP at $1.1878 from $1.1865 

Dollar/yen: DOWN at 139.26 yen from 139.28 yen

Euro/pound: UP at 87.56 pence from 87.22 pence

Brent North Sea crude: DOWN 1.4 percent at $92.55 per barrel

West Texas Intermediate: DOWN 1.9 percent at $85.30 per barrel

burs-rl/yad

European stock markets slid Wednesday, with investors spooked over a deadly missile blast in Poland near the border with Ukraine.

London dipped 0.1 percent, also on news that UK inflation spiked to a 41-year peak in October on rocketing energy bills and food prices.

Frankfurt fell 0.9 percent and Paris stocks sank 0.5 percent after Asia closed mostly in the red. 

The dollar fell against the euro and pound but rose against the yen, while oil advanced.

“Fears that the conflict in Ukraine could escalate after a Russian missile appeared to hit a village in Poland, a NATO member country, have held back gains on global markets,” said Hargreaves Lansdown analyst Susannah Streeter.

“There will be reassurance in words from (US President) Joe Biden that it was ‘unlikely’ to have come from Russia,” she added.

The Kremlin has accused Ukraine of a deadly blast in Poland, with Belgium saying it was probably caused by Kyiv’s air defences firing at Moscow’s incoming missiles.

Back in Britain, official data showed that UK inflation surged in October to 11.1 percent, the highest level since 1981 in a worsening cost-of-living crisis.

The grim news came on the eve of a gloomy UK government budget that is likely to ramp up taxes and slash spending.

“The UK is reeling from yet another super-hot inflation reading as soaring food and energy prices take their toll on household budgets,” added Streeter.

This year, the Ukraine war has massively contributed to worldwide inflation soaring to the highest level in decades. Prices are up also on pandemic-fuelled supply constraints.

Rocketing inflation has forced central banks to raise interest rates by big amounts, risking a global recession.

There has been some relief from data showing US consumer prices rose much less than expected in October, suggesting months of monetary tightening by the Federal Reserve was kicking in.

This was followed by data Tuesday showing a below-forecast reading on wholesale prices.

Sentiment was further boosted by China’s pledge to provide much-needed support to the country’s beleaguered property sector, as well as ease some of the strict Covid-19 restrictions that have played a major role in dragging the economy down.

– Key figures around 1120 GMT –

London – FTSE 100: DOWN 0.1 percent at 7,365.72 points

Frankfurt – DAX: DOWN 0.9 percent at 14,253.73

Paris – CAC 40: DOWN 0.5 percent at 6,610.72

EURO STOXX 50: DOWN 0.5 percent at 3,895.45

Tokyo – Nikkei 225: UP 0.1 percent at 28,028.30 (close)

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 18,256.48 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,119.98 (close)

New York – Dow: UP 0.2 percent at 33,592.92 points (close)

Euro/dollar: UP at $1.0427 from $1.0349 on Tuesday

Pound/dollar: UP at $1.1910 from $1.1865 

Dollar/yen: UP at 139.41 yen from 139.28 yen

Euro/pound: UP at 87.52 pence from 87.22 pence

Brent North Sea crude: UP 0.6 percent at $94.43 per barrel

West Texas Intermediate: UP 0.5 percent at $87.37 per barrel

Indonesia has proposed the establishment of a bloc of the world’s top nickel producers similar to the oil cartel OPEC in talks with Canada, its investment minister said.

The Southeast Asian nation is the world’s top nickel producer, while Canada is also a major producer of the mineral, according to United States Geological Survey data.

“Through such collaboration, we hope all nickel-producing countries will be able to profit through a fair added value creation,” Bahlil Lahadalia said, according to a ministry statement. 

The proposal was raised when Lahadalia met Canada’s trade minister Mary Ng on the sidelines of the G20 summit in Bali.  

He said an organisation similar to OPEC, a group of 13 oil-producing countries, could help organise and streamline policies on nickel, a key mineral used to make batteries — including for electric vehicles, stainless steel and mobile phones.

Lahadalia previously floated the idea of such a grouping in an interview with the Financial Times in October, saying at the time that Indonesia was still formulating the group’s structure.

Ng said in the statement that the two countries could explore the collaboration proposal, adding that Indonesia and Canada shared a similar vision for optimising their resources in a sustainable way. 

Indonesia has banned exports of raw nickel ore since 2020 in a move to encourage investments in downstream industries in the country, which also sparked a trade dispute with the European Union. 

The Indonesian government has touted plans to turn the country into an electric-vehicle hub. Nickel is used in lithium batteries that power petrol-free cars.

It has attracted investment from some foreign firms in nickel-battery processing plants, including China’s Tsingshan Holding Group.

Asian stocks mostly fell Wednesday as another positive US inflation report that fanned hopes of a slowdown in the Fed’s rate hike campaign was offset by fresh geopolitical concerns over Ukraine and profit-taking.

World markets have rallied since last week after data showed US consumer prices rose much less than expected in October, suggesting months of monetary tightening by the Federal Reserve was kicking in.

The news was followed Tuesday by a below-forecast reading on wholesale prices, providing extra room for the central bank to take its foot off the pedal when raising borrowing costs and possibly easing pressure on the economy.

Still, central banks’ tough battle against inflation was highlighted Wednesday by data showing UK prices rose more than 11 percent last month, a fresh four-decade high.

The optimism had been further enhanced by China’s pledge to provide much-needed support to the country’s beleaguered property sector as well as ease some of the strict Covid-19 restrictions that have played a major role in dragging the economy down.

However, the positive mood that had flowed through markets was dealt a blow after Poland said a missile — “most probably Russian-made” — had struck a village in the country’s east, killing two people.

Warsaw put its military on alert and US President Joe Biden and other Western leaders met in an “emergency roundtable” Wednesday on the sidelines of the G20 summit in Indonesia.

The news sparked fears that if it was proved to be an attack on Poland, a NATO member, the nine-month war in Ukraine could escalate.

Biden told reporters that allies would support Poland in probing “exactly what happened” but that preliminary information showed it was probably not fired “from Russia”.

And France urged “utmost caution” on the origin of the missile.

– ‘Wartime mistake’ –

The comments helped ease concern on trading floors, though profit-taking after three days of healthy gains weighed on buying sentiment.

Tokyo, Singapore and Mumbai edged up but Hong Kong fell after surging about 14 percent over the previous three days.

There were also losses in Shanghai, Sydney, Seoul, Wellington, Manila, Bangkok, Jakarta and Taipei. 

London and Paris opened higher but Frankfurt was flat.

“Even if the missiles that crossed the Polish border were indeed deemed Russian and not Ukrainian anti-missile interceptors, the case would fall short of triggering an escalation at this point,” said SPI Asset Management’s Stephen Innes

“Hence the markets are deferring to a wartime mistake, believing this to be a case of misfire.”

Still, he added: “While the market is not in full risk-off mode while deferring to a wartime mistake, the risk of a NATO-Russia clash is growing and real.”

On currency markets, the dollar also saw sharp swings against its peers in reaction to the news out of Poland, while oil slipped after initially spiking on reports of the strike.

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: UP 0.1 percent at 28,028.30 (close)

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 18,256.48 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,119.98 (close)

London – FTSE 100: UP 0.2 percent at 7,380.67

Euro/dollar: UP at $1.0401 from $1.0354 on Tuesday

Pound/dollar: UP at $1.1873 from $1.1871 

Dollar/yen: UP at 139.39 yen from 139.16 yen

Euro/pound: UP at 87.63 pence from 87.18 pence

West Texas Intermediate: DOWN 0.5 percent at $86.48 per barrel

Brent North Sea crude: DOWN 0.3 percent at $93.62 per barrel

New York – Dow: UP 0.2 percent at 33,592.92 points (close)

Prices of new homes in China saw their sharpest decline for seven years in October, data showed Wednesday, as the real estate sector was battered by a debt crisis and a slowing economy.

Property market has long served as a motor for growth in China, on the backs of rising standards of living and high demand in a country where home ownership is seen as a prerequisite for marriage.

But uncertainties linked to Covid-19, which have cooled demand and weighed on household income, are hitting buyers, at a time when several major real estate groups in China are in financial difficulty.

The price of new homes contracted 1.6 percent year-on-year, their sharpest decline since August 2015, analysis of figures from Beijing’s National Bureau of Statistics (NBS) showed.

Real estate prices fell in 58 cities, according to the NBS, which aggregates the average price in 70 cities across China.

Prices in the mega-cities of Beijing and Shanghai bucked the trend.

The figures come after China’s banking regulator unveiled sweeping measures to rescue the struggling property sector last week.

Those included credit support for debt-laden housing developers, financial support to ensure the completion and handover of projects to homeowners, and assistance for deferred-payment loans for buyers.

Friday’s measures emphasised “guaranteeing the handover of buildings”, and ordered development banks to provide “special loans” for the purpose, according to a copy of plans circulating online.

Property and construction account for around a quarter of China’s gross domestic product, but crippling debts have forced a series of developers to default on loans while others have struggled to raise cash.

Analysts have raised fears that the crisis could yet spread to the country’s financial sector at a time when Beijing’s hardline zero-Covid policy has also put a lid on growth.

Asian stocks fluctuated Wednesday as another positive US inflation report that fanned hopes of a slowdown in the Federal Reserve’s interest rate hike campaign was offset by fresh geopolitical concerns over Ukraine.

World markets have rallied since last week after data showed US consumer prices rose much less than expected in October, suggesting months of Fed monetary tightening was kicking in.

The news was followed Tuesday by a below-forecast reading on wholesale prices, providing extra room for the central bank to take its foot off the pedal when raising borrowing costs and possibly easing pressure on the economy.

The optimism has been further enhanced by China’s pledge to provide much-needed support to the country’s beleaguered property sector as well as ease some of the strict Covid-19 restrictions that have played a major role in dragging the economy down.

However, the positive mood that had flowed through markets was dealt a blow after Poland said a Russian-made missile had struck a village in the country’s east, killing two people.

Warsaw put its military on alert and US President Joe Biden and other Western leaders met in an “emergency roundtable” Wednesday on the sidelines of the G20 summit in Indonesia.

The news sparked fears that if it was proved to be an attack on Poland, a NATO member, the nine-month war in Ukraine could escalate.

Biden told reporters that allies would support Poland in probing “exactly what happened” but that preliminary information showed it was probably not fired “from Russia”.

The comments helped ease concern on trading floors, though profit-taking after three days of healthy gains also kept buyers in check.

Hong Kong, Shanghai, Wellington and Taipei were slightly higher, while Tokyo, Sydney, Seoul, Singapore, Manila and Jakarta dipped.

“Even if the missiles that crossed the Polish border were indeed deemed Russian and not Ukrainian anti-missile interceptors, the case would fall short of triggering an escalation at this point,” said SPI Asset Management’s Stephen Innes

“Hence the markets are deferring to a wartime mistake, believing this to be a case of misfire.”

Still, he added: “While the market is not in full risk-off mode while deferring to a wartime mistake, the risk of a NATO-Russia clash is growing and real.”

On currency markets, the dollar also saw sharp swings against its peers in reaction to the news out of Poland, while oil slipped.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.1 percent at 27,955.85 (break)

Hong Kong – Hang Seng Index: UP 0.2 percent at 18,368.52

Shanghai – Composite: UP 0.3 percent at 3,142.74

Euro/dollar: UP at $1.0382 from $1.0354 on Tuesday

Pound/dollar: UP at $1.1877 from $1.1871 

Dollar/yen: UP at 139.86 yen from 139.16 yen

Euro/pound: UP at 87.41 pence from 87.18 pence

West Texas Intermediate: DOWN 0.3 percent at $86.66 per barrel

Brent North Sea crude: DOWN 0.3 percent at $93.63 per barrel

New York – Dow: UP 0.2 percent at 33,592.92 points (close)

London – FTSE 100: DOWN 0.2 percent at 7,369.44 (close)

Global markets pushed higher on Tuesday, boosted by encouraging data and earnings reports suggesting resilience in the US economy and showing inflation may be slowing.

But Wall Street retreated from the day’s highs after reports of a missile strike in Poland.

NATO and the Pentagon said they were looking into unconfirmed reports that two Russian missiles had landed inside NATO-member Poland. 

The news sent US stocks lower but major indices recovered ground by the closing bell, and the broad-based S&P 100 gained 0.9 percent.

Moves by China to shore up its economy also boosted sentiment, while the dollar continued to fall back following data showing US wholesale price inflation eased last month — lifting hopes the central bank could slow its pace of interest rate hikes.

Stocks have taken a beating in recent months as the US Federal Reserve and other central banks aggressively raised borrowing costs, and after statements by policymakers who say they are ready to push economies into recession if necessary to bring inflation down.

But markets rallied late last week on indications that US consumer price inflation may be moderating.

And data released Tuesday showed the producer price index, which measures wholesale costs, rose far slower than analysts expected.

“While Fed officials have been at pains to push back on the narrative that inflation may well have peaked, the numbers appear to be speaking for themselves,” said market analyst Michael Hewson at CMC Markets.

“Fed officials may well be urging caution but investors already appear to have made up their minds,” he added.

Top retailer Walmart, a bellwether for shifts in consumer activity, also posted encouraging third quarter results with rising sales and better-than-expected earnings.

It announced a $20 billion share buyback, sending its shares up by nearly seven percent at close.

But Jack Ablin of Cresset Capital cautioned that recent trading days saw strong gains at the beginning and a loss of momentum at the end is “not a good sign” since it could reflect some caution among institutional investors.

“We really had a trifecta of information between retail and PPI and the China reopening story, and you would think that would be a recipe for a bull market, but institutional investors don’t agree,” he told AFP.

European stocks were mostly higher in afternoon trading, with an improvement in German investor sentiment helping eurozone stocks, while London’s blue-chip FTSE 100 index was penalized by the strong pound.

In Asia trading, China’s move to ease some strict Covid-19 restrictions and provide much-needed support to its beleaguered property sector helped support sentiment.

Hong Kong rose more than four percent and Shanghai closed in positive territory.

There has also been a boost in optimism for thawing relations between Washington and Beijing, after talks between US President Joe Biden and China’s top leader Xi Jinping on the sidelines of the G20 summit in Indonesia.

While there remain differences on hot-potato issues such as Taiwan, the sides found common ground on the Ukraine conflict, climate and the need to avoid another Cold War.

Oil prices initially slid as the International Energy Agency once again cut its demand growth forecasts given the fragile state of the global economy, but a drop in the dollar helped them later turn positive.

– Key figures around 2130 GMT –

New York – Dow: UP 0.2 percent at 33,592.92 points (close)

New York – S&P 500: UP 0.9 percent at 3,991.73 (close)

New York – Nasdaq: UP 1.5 percent at 11,358.41 (close)

EURO STOXX 50: UP 0.7 percent at 3,915.09 (close)

London – FTSE 100: DOWN 0.2 percent at 7,369.44 (close)

Frankfurt – DAX: UP 0.5 percent at 14,378.51 (close)

Paris – CAC 40: UP 0.5 percent at 6,641.66 (close)

Tokyo – Nikkei 225: UP 0.1 percent at 27,990.17 (close)

Hong Kong – Hang Seng Index: UP 4.1 percent at 18,343.12 (close)

Shanghai – Composite: UP 1.6 percent at 3,134.08 (close)

Euro/dollar: UP at $1.0354 from $1.0331 on Monday

Pound/dollar: UP at $1.1871 from $1.1751 

Dollar/yen: DOWN at 139.16 yen from 139.90 yen

Euro/pound: DOWN at 87.18 pence from 87.89 pence

West Texas Intermediate: UP 1.22 percent at $86.92 per barrel

Brent North Sea crude: UP 0.8 percent at $93.86 per barrel

burs-rl-bys/hs

Stocks mostly pushed higher on Tuesday, boosted by encouraging data and earnings reports suggesting inflation may be slowing and resilience in the US economy.

Moves by China to shore up its economy also boosted sentiment, while the dollar continued to fall back following the inflation data which further raised hopes of a slowdown in the hiking of US interest rates.

Stocks have taken a beating in recent months as the US Federal Reserve and other central banks have aggressively hiked interest rates, and on statements by policymakers who say they are ready to push economies into recession if necessary to bring inflation down.

But stocks rallied last week as data suggested that US inflation may be moderating and policymakers have indicated that the pace of interest rate hikes may slow even if interest rates need to rise further.

Data released Tuesday suggested US inflation may be slowing.

Manufacturing prices rose just 0.2 percent month-on-month in October, and were flat when volatile food and energy prices are excluded. On an annual measure, core manufacturing prices fell to 6.7 percent from 7.2 percent in September.

“The key takeaway from the report is the clear signs of disinflation embedded in it,” said Patrick O’Hare at Briefing.com.

The data “will feed the market’s newfound belief that the Fed is apt to take a less aggressive rate-hike approach and ultimately settle on a lower terminal rate than previously thought,” he added.

Wall Street stocks snapped higher at the start of trading and remained there during morning trading.

“While Fed officials have been at pains to push back on the narrative that inflation may well have peaked the numbers appear to be speaking for themselves,” said market analyst Michael Hewson at CMC Markets.

“Fed officials may well be urging caution but investors already appear to have made up their minds,” he added.

Meanwhile, a key US manufacturing survey released on Tuesday turned positive when analysts had expected it to continue pointing to a contraction, suggesting resilience in the economy despite the Fed interest rate hikes.

Meanwhile, top retailer Walmart, a bellwether for shifts in consumer activity, also posted better-than-expected third quarter results with rising sales volumes and increased earnings. 

A $20 billion share buyback helped send its shares rocketing 7.4 percent higher.

European stocks were mostly higher in afternoon trading, with an improvement in German investor sentiment helping eurozone stocks, while London’s blue-chip FTSE 100 index was penalised by the strong pound.

China’s move to ease some of its strict Covid-19 restrictions and provide much-needed support to its beleaguered property sector helped support sentiment in Asian trading.

Hong Kong rose more than four percent and Shanghai also closed in positive territory.

Optimism for a thawing in relations between Washington and Beijing was boosted after Biden and Xi’s extended talks on the sidelines of the G20 summit in Indonesia.

While there remain differences on hot-potato issues such as Taiwan, the two did find common ground on the Ukraine conflict, climate and the need to avoid another Cold War.

Oil prices initially slid as the International Energy Agency once again cut its demand growth forecasts given the fragile state of the global economy, but the drop in the dollar helped them later turn positive.

– Key figures around 1530 GMT –

New York – Dow: UP 0.7 percent at 33,776.67 points

EURO STOXX 50: UP 0.7 percent at 3,915.09

London – FTSE 100: DOWN 0.2 percent at 7,369.44 (close)

Frankfurt – DAX: UP 0.5 percent at 14,378.51 (close)

Paris – CAC 40: UP 0.5 percent at 6,641.66 (close)

Tokyo – Nikkei 225: UP 0.1 percent at 27,990.17 (close)

Hong Kong – Hang Seng Index: UP 4.1 percent at 18,343.12 (close)

Shanghai – Composite: UP 1.6 percent at 3,134.08 (close)

Euro/dollar: UP at $1.081 from $1.0331 on Monday

Pound/dollar: UP at $1.1884 from $1.1751 

Dollar/yen: DOWN at 139.26 yen from 139.90 yen

Euro/pound: DOWN at 87.35 pence from 87.89 pence

West Texas Intermediate: UP 0.2 percent at $86.08 per barrel

Brent North Sea crude: UP 0.2 percent at $93.33 per barrel

burs-rl/lcm

Stocks mostly pushed higher on Tuesday, boosted by encouraging data and earnings suggesting inflation may be slowing, and resilience in the US economy.

Moves by China to shore up its economy also boosted sentiment, while the dollar continued to fall back following indications of a possible slowdown in the hiking of US interest rates.

Stocks have taken a beating in recent months as the US Federal Reserve and other central banks have aggressively hiked interest rates, and on statements by policymakers who say they are ready to push economies into recession if necessary to bring inflation down.

But stocks rallied last week as data suggested that US inflation may be moderating and policymakers have indicated that the pace of interest rate hikes may slow even if interest rates need to rise further.

Data released Tuesday suggested US inflation may be slowing.

Manufacturing prices rose just 0.2 percent month-on-month in October, and were flat when volatile food and energy prices are excluded.

“The key takeaway from the report is the clear signs of disinflation embedded in it,” said Patrick O’Hare at Briefing.com.

The data “will feed the market’s newfound belief that the Fed is apt to take a less aggressive rate-hike approach and ultimately settle on a lower terminal rate than previously thought,” he added.

Wall Street stocks snapped higher at the open of trading in New York, with the Dow rising 0.9 percent. The broader S&P 500 jumped 1.6 percent and the tech-heavy Nasdaq soared 2.4 percent.

A key US manufacturing survey released on Tuesday turned positive when analysts had expected it to continue pointing to a contraction, suggesting resilience in the economy despite the Fed interest rate hikes.

Meanwhile, top retailer Walmart, a bellwether for shifts in consumer activity, also posted better-than-expected third quarter results with rising sales volumes and increased earnings. 

A $20 billion share buyback helped send its shares rocketing 6.2 percent higher.

European stocks were mostly higher in afternoon trading, with an improvement in German investor sentiment helping eurozone stocks, while London’s blue-chip FTSE 100 index was penalised by the strong pound.

China’s move to ease some of its strict Covid-19 restrictions and provide much-needed support to its beleaguered property sector helped support sentiment in Asian trading.

Hong Kong rose more than four percent and Shanghai also closed in positive territory.

Optimism for a thawing in relations between Washington and Beijing was boosted after Biden and Xi’s extended talks on the sidelines of the G20 summit in Indonesia.

While there remain differences on hot-potato issues such as Taiwan, the two did find common ground on the Ukraine conflict, climate and the need to avoid another Cold War.

Oil prices slid as the International Energy Agency once again cut its demand growth forecasts given the fragile state of the global economy.

– Key figures around 1330 GMT –

London – FTSE 100: DOWN 0.3 percent at 7,366.09 points

Frankfurt – DAX: UP 0.4 percent at 14,367.91

Paris – CAC 40: UP 0.6 percent at 6,646.55

EURO STOXX 50: UP 0.7 percent at 3,913.49

New York – Dow: UP 0.9 percent at 33,821.25

Tokyo – Nikkei 225: UP 0.1 percent at 27,990.17 (close)

Hong Kong – Hang Seng Index: UP 4.1 percent at 18,343.12 (close)

Shanghai – Composite: UP 1.6 percent at 3,134.08 (close)

Euro/dollar: UP at $1.0422 from $1.0331 on Monday

Pound/dollar: UP at $1.1962 from $1.1751 

Dollar/yen: DOWN at 138.85 yen from 139.90 yen

Euro/pound: DOWN at 87.17 pence from 87.89 pence

West Texas Intermediate: DOWN 0.9 percent at $85.10 per barrel

Brent North Sea crude: DOWN 0.9 percent at $92.33 per barrel

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