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Ukraine president says 'outnumbered' in strategic city Severodonetsk

Ukrainian troops suffered setbacks after retaking parts of flashpoint eastern city Severodonetsk, where President Volodymyr Zelensky on Monday warned his forces were outnumbered by a “stronger” Russian side.

“We’re holding out” in the key city but “there are more of them and they are stronger,” Zelensky told journalists in Kyiv, adding that Severodonetsk and neighbouring Lysychansk were both “dead cities now”.

With fighting raging in and around Severodonetsk, Russia’s Foreign Minister Sergei Lavrov blasted European countries for blocking his plane from travelling to Serbia.

Lavrov repeated Moscow’s threat of retaliation if the West supplied more long-range weapons to Ukraine as promised, while Zelensky warned that the blockade on the country’s grain stocks could get worse.

With Russia bringing the weight of its artillery to bear around Severodonetsk — the largest city in the Lugansk region not under Russian control — more help was promised from abroad.

The United Kingdom said it would follow the United States and send long-range missile systems to Ukraine, defying Russian warnings against supplying them to Kyiv.

Thousands of civilians have been killed and millions forced to flee their homes since President Vladimir Putin ordered Russian troops into Ukraine on February 24.

Fighting since April has been concentrated in the east of the country, where Russian forces have made slow but steady advances after being beaten back from other parts of Ukraine, including the capital Kyiv.

– ‘It’s a horror show’ –

Artillery strikes have intensified on Severodonetsk and Lysychansk, where pensioner Oleksandr Lyakhovets said he had just enough time to save his cat before flames engulfed his flat after it was hit by a Russian missile.

“They shoot here endlessly… It’s a horror show,” the 67-year-old told AFP.

Lysychansk was among the areas visited Sunday by President Volodymyr Zelensky, who “got himself acquainted with the operational situation on the front line of defence”, the presidency said.

Lavrov on Monday hit out at European countries that prevented his plane passing through their airspace, forcing him to cancel a visit to ally Belgrade.

“The unthinkable has happened… This was a deprivation of a sovereign state of the right to carry out foreign policy,” Lavrov told journalists in Moscow.

Lavrov had been due to hold talks with top officials in Belgrade, one of Moscow’s few remaining allies in Europe since the launch of its military offensive in Ukraine.

Serbian daily Vecernje Novosti reported that NATO-members Bulgaria, North Macedonia and Montenegro had refused access to their airspace.

While Serbia has condemned Russia’s military action in Ukraine, it has not joined the European Union in imposing sanctions in Moscow, despite its bid to join the bloc.

– UK pledges missiles –

The United States last week said it would supply Ukraine with advanced missile systems, the latest in a long list of weaponry sent or pledged to the pro-Western country.

Lavrov told journalists Monday: “The more long-range weapons you supply, the further we will push away from our territory” the line of Ukrainian forces.

Putin had already warned the West against supplying such weapons.

The UK defence ministry said London had coordinated closely with Washington over its gift of the multiple-launch rocket systems, known as MLRS.

The M270 launchers, which can strike targets up to 80 kilometres (50 miles) away with precision-guided rockets, will “offer a significant boost in capability for the Ukrainian forces”, the ministry added.

Western powers have imposed increasingly stringent sanctions on Russia but divisions have emerged on how to act, particularly on whether to engage in dialogue with Russia.

– Resort deaths –

Russian forces continued their offensive on several other fronts in the east of Ukraine, with Kyiv saying it had repulsed seven attacks around Donetsk and Lugansk.

The Russian defence ministry said its aircraft had hit three arms depots and a fuel storage facility near the village of Kodema, in the Donetsk region.

The situation in Kherson region in the south is “critical”, Kyiv said, given the absence of “mobile and internet networks, food supplies, medicine and cash.”

Three civilians were killed in Black Sea resort Lazurne, where Russians have mined the coast, the authorities said.

Renewed Russian long-range missile strikes in the northeastern Kharkiv region hit what Moscow said was a factory for repairing armoured vehicles near Lozova.

At least 10 civilians have been killed in the region in 24 hours, Kyiv said.

“The enemy is stepping up” attacks on infrastructure including roads and “creating railway pontoon bridges across rivers” around Kharkiv, the Ukrainian defence ministry said.

Russian troops now occupy a fifth of Ukraine’s territory, according to Kyiv, and Moscow has imposed a blockade on its Black Sea ports, sparking fears of a global food crisis.

Zelensky warned Monday the volume of grain his country is unable to export because of a Russian blockade could at least triple by the autumn.

“Right now we have about 20-25 million tonnes blocked. In the autumn that could be 70-75 million tonnes,” said Zelensky, whose country was the world’s fourth biggest grain exporter before the war.

The Ukrainian army said meanwhile that it had pushed the Russian fleet back more than a hundred kilometres from Ukraine’s southwestern Black Sea coast, where Moscow’s ships have been carrying out a naval blockade for weeks.

According to the ministry, Russian forces had to deploy coastal defence missile systems in Crimea and in Ukraine’s southern Kherson region which they now occupy. 

“We have deprived the Russian fleet of total control over the northwestern part of the Black Sea, which has become a ‘grey zone’,” the ministry said, adding Moscow was currently trying to regain control there.

Russian ships nevertheless continue “to block civil navigation” in this area, according to the same source. 

US suspends solar tariffs, boosts production in clean energy push

US President Joe Biden on Monday will suspend tariffs for two years on solar panel imports from four countries and invoke a key power to compel domestic manufacture of clean energy technology, the White House said.

The moves are aimed at boosting renewable capacity and combating climate change, a priority for the president whose green ambitions have met with mixed success.

“Today’s clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate,” the White House said in a fact sheet.

It added that, compared to when Biden took office, the United States was on track to triple domestic solar manufacturing capacity by 2024, from 7.5 gigawatts to 22.5 gigawatts, enough to enable 3.3 million homes to switch to solar each year.

Duties will be lifted on certain solar parts from Cambodia, Malaysia, Thailand, and Vietnam — but not China — as a “bridge” to ensure the United States has access to sufficient parts to meet electricity needs while domestic capacity scales up.

China is excluded as the Commerce Department investigates whether some Chinese companies are circumventing US customs duties by assembling parts in the four countries.

At the same time, Biden’s administration will invoke the Defense Production Act (DPA) to accelerate production, and use the federal government’s purchasing power to increase demand.

Solar panel parts, building insulation and efficient heat pumps are all targeted under the DPA.

Former president Donald Trump used the same powers during the Covid pandemic to increase production of medicines and equipment, and it was also invoked during World War II.

Most recently, Biden used the act to help baby formula makers to overcome a production shortfall.

The administration will also look to permit more clean energy projects on public lands, including both solar and wind.

“The fact is with a stronger clean energy arsenal, the United States can also be a stronger power partner to our allies all around the world, especially in the face of Putin’s war in Ukraine,” a senior administration official told reporters.

“The stakes are high and the president is taking action.”

Biden has succeeded in getting Congress to pass a bipartisan infrastructure law, a pillar in his climate policy, but has failed to pass a second proposed law, the Build Back Better act.

At the same time he has been criticized by environmental groups for plans to resume oil and gas drilling on public lands, reneging on a campaign promise.

US suspends solar tariffs, boosts production in clean energy push

US President Joe Biden on Monday will suspend tariffs for two years on solar panel imports from four countries and invoke a key power to compel domestic manufacture of clean energy technology, the White House said.

The moves are aimed at boosting renewable capacity and combating climate change, a priority for the president whose green ambitions have met with mixed success.

“Today’s clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate,” the White House said in a fact sheet.

It added that, compared to when Biden took office, the United States was on track to triple domestic solar manufacturing capacity by 2024, from 7.5 gigawatts to 22.5 gigawatts, enough to enable 3.3 million homes to switch to solar each year.

Duties will be lifted on certain solar parts from Cambodia, Malaysia, Thailand, and Vietnam — but not China — as a “bridge” to ensure the United States has access to sufficient parts to meet electricity needs while domestic capacity scales up.

China is excluded as the Commerce Department investigates whether some Chinese companies are circumventing US customs duties by assembling parts in the four countries.

At the same time, Biden’s administration will invoke the Defense Production Act (DPA) to accelerate production, and use the federal government’s purchasing power to increase demand.

Solar panel parts, building insulation and efficient heat pumps are all targeted under the DPA.

Former president Donald Trump used the same powers during the Covid pandemic to increase production of medicines and equipment, and it was also invoked during World War II.

Most recently, Biden used the act to help baby formula makers to overcome a production shortfall.

The administration will also look to permit more clean energy projects on public lands, including both solar and wind.

“The fact is with a stronger clean energy arsenal, the United States can also be a stronger power partner to our allies all around the world, especially in the face of Putin’s war in Ukraine,” a senior administration official told reporters.

“The stakes are high and the president is taking action.”

Biden has succeeded in getting Congress to pass a bipartisan infrastructure law, a pillar in his climate policy, but has failed to pass a second proposed law, the Build Back Better act.

At the same time he has been criticized by environmental groups for plans to resume oil and gas drilling on public lands, reneging on a campaign promise.

US fund sues London Metal Exchange over nickel trade halt

A US investment firm has filed a $456-million lawsuit against the London Metal Exchange for suspending nickel trading during a huge surge in prices in March, the two sides said Monday.

The prices for the metal, used in stainless steel and electric vehicle batteries, jumped on March 8 to a then-record high of $101,365 per tonne on a bad bet from a Chinese billionaire after Russia’s invasion of Ukraine.

The LME subsequently decided to cancel all trades made that day and temporarily halted trading.

That left nickel’s record high at $48,002 per tonne, set on March 7.

The turmoil prompted fierce investor criticism of LME management, and UK financial regulators launched a review into the matter.

The US investment firm, Elliott Management, considers that by cancelling nickel trades, the LME either “acted unlawfully” by exceeding its powers or exercised them “unreasonably and irrationally” by “taking into account irrelevant factors”, a spokesman for the fund said.

LME’s owner, Hong Kong Exchanges and Clearing Limited, said in a statement that Elliott Management’s claim is “without merit and the LME will contest it vigorously”.

The LME said in a separate statement that it had cancelled trades to “take the market back to the last point in time at which the LME could be confident that the market was operating in an orderly way”.

“At all times the LME, and LME Clear, sought to act in the interests of the market as a whole,” it added.

Moscow’s invasion sparked nickel market chaos because of concerns about supplies from Russia, the world’s third-biggest producer of the industrial metal.

In Ukraine's 'martyr towns', hopes for speedy reconstruction

Zoya Potapova planted flowers behind the ruins of her home — bombed by Moscow in March — in the hope of a quick restoration even before any building work had begun.

Like Potapova, many residents of satellite towns north of the Ukrainian capital Kyiv are overcoming difficult memories of Russia’s occupation and placing their hope in the government’s promise of reconstruction.

In the settlement of Gorenka, which was pummelled at the beginning of Moscow’s invasion, the time is now for Potapova, who lost her husband in the conflict.

“I hope we won’t be forgotten. We did a lot to stop the advance towards the capital,” she says tearfully, throwing up her arms next to the charred remains of her home.

A local official, Tetiana Shepeleva, told AFP that 1,000 homes had been reported as either entirely or partially destroyed.

– Modular housing units – 

Potapova’s garden is thriving and beneath fruit trees shredded by shrapnel, potatoes and strawberries are flourishing.

Thanks to a streak of good weather, some residents are taking reconstruction efforts into their own hands. 

But there is a conspicuous lack of help and building material in the town, whose pre-war population was around 10,000 people.

The need for both is great across Ukraine. In late May, Prime Minister Denys Shmygal estimated the cost of the destruction wrought by Russia’s invasion at 561 billion euros ($603 billion).

For now, the priority in liberated towns north of Kyiv appears to be demining and AFP journalists there heard military engineers clearing unexploded ordnance.

Electricity is gradually being restored and so too a bridge near Gorenka.

In the town of Bucha, which has become synonymous with the alleged war crimes carried out by Russian troops, some 600 families are looking for a roof over their heads or renting vacation properties.

The town was known as a calm getaway surrounded by quiet pine forests before the invasion.

Some of those returning are being put up in grey shipping containers installed next to a large market that was reduced to a mess of sheet metal.

Polish Prime Minister Mateusz Morawiecki during a recent visit to Borodianka near Gorenka opened the first settlement for people left homeless by the conflict.

The settlement uses temporary modular housing units and more are planned in Ivankiv, Gostomel and Bucha.

“They’re made available for free by the government with enough space for 92 families,” said Bucha’s mayor, 50-year-old Anatoly Fedoruk, describing the compartments of 20 square metres (215 square feet) each that can accommodate four people.

– ‘We will get back everything’ – 

These makeshift homes provide clean living spaces, disinfected toilets and canteens with painted walls, accompanied by signs urging residents to stay strong, happy and hopeful.

Oksana Polishchuk’s own home was partially destroyed and her food stand went up in flames.

But the 41-year-old trader, who still suffers frequent panic attacks and is receiving psychological help, said she was not waiting for her house to be rebuilt.

“I want to be compensated and rebuild my life elsewhere,” she said.

“Ukrainians are not afraid of the rebuilding effort that awaits them.

“We will get back everything we had before. The only important thing is winning this war.”

Climate action must not be delayed by global crises, UN talks told

Negotiators from almost 200 countries met in Germany Monday for climate talks tasked with reigniting momentum on tackling global warming, as Russia’s invasion of Ukraine overshadows the threat from rising emissions.

The conference will set the stage for a fresh round of major United Nations talks later this year in Egypt.

It will also be a chance to test the resolve of nations facing a catalogue of crises, including escalating climate impacts, geopolitical tensions, bloodshed in Ukraine and the threat of a devastating global food crisis.

Issuing a call for international unity to hold firm, outgoing UN climate change chief Patricia Espinosa told delegates it was “not acceptable to say that we are in challenging times”.

“We must understand that climate change is moving exponentially. We can no longer afford to make just incremental progress,” she said at the opening of the June 6 to 16 meeting. 

“We must move these negotiations along more quickly. The world expects it.” 

Governments have already accepted that climate change is a grave threat to humanity and the planet, and have advocated immediate action to cut fossil fuel emissions and prepare for the accelerating impacts of warming.

The summary to this year’s landmark climate report from the Intergovernmental Panel on Climate Change concluded that any further delay in action “will miss a brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all”.

But as things are going, the world is unlikely to be able to meet the Paris climate deal’s commitment to limit warming “well below” 2 degrees Celsius above pre-industrial levels.

“There is this disconnect between the scientific evidence of global crisis in the making, of potentially rushing towards unmanageable climate impact, versus the lack of action,” Johan Rockstrom, director of the Potsdam Institute for Climate Impact Research, told AFP.

“This is a deep worry.”

The world has warmed nearly 1.2C so far — enough to usher in a crescendo of deadly heatwaves, floods and storm surges made worse by rising seas.

– Funding focus –

While the conference in the German city of Bonn is largely aimed at preparing for the UN COP27 meeting in Sharm el-Sheikh in November, there are a number of key issues up for debate.

That includes a push for countries to speed up their timetable for updating their carbon-cutting plans, to more quickly align actions on reducing emissions with the agreed goals for limiting global warming. 

A particular focus will also be funding from rich polluters to help vulnerable developing nations least responsible for global heating.

A promise of $100 billion a year from 2020 to help them adapt to a warming world has still not been met.

Meanwhile, there are growing calls for “loss and damage” funding for countries already struck by devastating climate impacts, with a specific dialogue on the subject slated for this week. 

The Alliance of Small Island States has warned that the Bonn conference must not be “just another talk shop”, calling for a “clear view” on when and how this financing will be put in place.

– ‘Fragile’ world –

UN Secretary General Antonio Guterres last week warned that Russia’s invasion of Ukraine risked slowing action to combat the climate crisis.

“But I think this war has demonstrated one thing: how fragile the world is in its dependence to fossil fuels,” he added.

The invasion has prompted countries, particularly in Europe, to scramble to shore up energy supplies. It has also caused wheat and fertiliser prices to soar.

Fears of a food crisis have intensified in recent weeks, with India moving to ban wheat exports after the hottest March and April on record — blamed largely on climate change — hit harvests.

One opportunity for exhibiting political will comes on Wednesday when the European Parliament votes several hotly debated planks of the bloc’s sprawling “Fit for 55” climate plan.

EU member states have set themselves the target of reducing their greenhouse gas emissions by 55 percent by 2030 compared to 1990, and achieving carbon neutrality for the continent by 2050.

In May, an analysis from non-profit groups found that countries in the G20 group of major economies have yet to strengthen greenhouse gas reduction goals, despite agreeing to revisit their plans.

Last year in Glasgow, countries made new pledges to slash methane emissions, stop deforestation and other measures that — in addition to existing national carbon-cutting pledges — could theoretically cap warming under 2C, said Rockstrom. 

But that means the focus at this year’s meetings needs to be on “accountability”, he added. 

“We are now in the delivery phase”.

Ukraine suffers setbacks in strategic city Severodonetsk

Ukrainian troops suffered setbacks after retaking parts of flashpoint eastern city Severodonetsk from Russian forces, local officials said on Monday, as the see-saw battle raged on for the strategically important city.

With Russia bringing the weight of its artillery to bear around Severodonetsk — the largest city in the Lugansk region not under Russian control — more help was promised from abroad.

The United Kingdom said it would follow the United States and send long-range missile systems to Ukraine, defying warnings from Russian President Vladimir Putin against supplying Kyiv with the advanced weapons.

Thousands of civilians have been killed and millions forced to flee their homes since Putin ordered Russian troops into Ukraine on February 24.

Fighting since April has been concentrated in the east of the country, where Russian forces have made slow but steady advances after being beaten back from other parts of Ukraine, including the capital Kyiv.

“Fighting is very fierce in Severodonetsk,” regional governor Sergiy Gaiday told Ukraine’s 1+1 television.

“Our defenders managed to counter-attack and liberate half of the city, but the situation has worsened for us.”

Russian forces “are destroying everything with their usual scorched earth tactics” so that “there’s nothing left to defend”, he said.

Gaiday said on Sunday that Kyiv’s troops had “cleared half of Severodonetsk and are moving forward”, after Ukrainian forces earlier appeared on the verge of being driven out of the city.

– ‘It’s a horror show’ –

Artillery strikes have intensified on Severodonetsk and neighbouring city Lysychansk, where pensioner Oleksandr Lyakhovets said he had just enough time to save his cat before the flames engulfed his flat after it was hit by a Russian missile.

“They shoot here endlessly… It’s a horror show,” the 67-year-old told AFP.

Lysychansk was among areas visited on Sunday by President Volodymyr Zelensky, who “got himself acquainted with the operational situation on the front line of defence”, the presidency said.

In Moscow, Russian Foreign Minister Sergei Lavrov on Monday blasted European countries for blocking his plane from travelling to Serbia, saying: “The unthinkable has happened.”

“This was a deprivation of a sovereign state of the right to carry out foreign policy,” Lavrov told an online press conference in Moscow after several of Serbia’s neighbours prevented his plane from passing through their airspace.

Lavrov had been due to hold talks with top officials in Belgrade, one of Moscow’s few remaining allies in Europe since the launch of its military offensive in Ukraine.

Serbian daily Vecernje Novosti reported that Bulgaria, Macedonia and Montenegro had refused access to their airspace.

While Serbia has condemned Russia’s military action in Ukraine, it has not joined the European Union in imposing sanctions in Moscow, despite its bid to join the bloc.

– UK pledges missiles –

Ukraine has asked supporting countries for ever more powerful arms to fend off the Russian attack, and its deputy defence minister stressed on Sunday this support was needed until Moscow was defeated.

The United States last week said it would supply Ukraine with advanced missile systems, the latest in a long list of weaponry sent or pledged to the pro-Western country.

But Putin said long-range missile supplies to Ukraine meant “we will draw the appropriate conclusions and use our arms… to strike targets we haven’t hit before”.

Unveiling the latest UK contribution, Defence Secretary Ben Wallace insisted Ukraine’s Western allies must maintain their weapons deliveries to enable it to win.

The UK defence ministry said London had coordinated closely with Washington over its gift of the multiple-launch rocket systems, known as MLRS.

The M270 launchers, which can strike targets up to 80 kilometres (50 miles) away with precision-guided rockets, will “offer a significant boost in capability for the Ukrainian forces”, the ministry added.

Western powers have imposed increasingly stringent sanctions on Russia but divisions have emerged on how to act, particularly on whether to engage in dialogue with Russia.

– Grain talks –

Russian troops now occupy a fifth of Ukraine’s territory, according to Kyiv, and Moscow has imposed a blockade on its Black Sea ports, sparking fears of a global food crisis.

Ukraine and Russia are among the top wheat exporters in the world. Some 30 percent of the world’s grain exports originate from the warring countries.

The United Nations said it was leading intense negotiations with Russia to allow Ukraine’s grain harvest to leave the country.

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Stocks, oil prices rise on China boost

Global stock markets and oil prices advanced Monday, helped by an easing of Covid lockdowns in the world’s second biggest economy China.

London’s stock market, reopening after a British public holiday to mark Queen Elizabeth II’s Platinum Jubilee, shrugged off news that embattled British Prime Minister Boris Johnson was Monday to face a confidence vote from MPs in his own Tory party.

Elsewhere, eurozone stocks climbed ahead of a European Central Bank meeting Thursday when the ECB is is set to draw a line under its massive bond-buying stimulus programme.

Wall Street ended last week in the red as news of larger-than-expected jobs creation in the United States gave the Federal Reserve room to continue hiking interest rates amid decades-high inflation.

Stocks “have started the week on a positive note buoyed by a strong US jobs report on Friday”, noted Victoria Scholar, head of investment at Interactive Investor.

Traders took heart also from a wind-down of Covid containment measures in China that have crippled its economy for months.

With infections trending down in major cities including Shanghai and Beijing, authorities have allowed some sense of normality to return, raising hopes for a pick-up in consumer activity.

“Positive news around Chinese economic activity and cheaper equity valuations could offer value from a long-term investment perspective, but volatility will remain high in the short-term,” noted Diana Mousina, of AMP Capital.

– Oil boost –

Oil prices extended recent gains as a pledge by OPEC and other major producers to boost output fell short of what markets hoped for. 

“Despite OPEC+’s increased output, prices could remain elevated driven by the EU partial ban on Russian imports, the easing of covid restrictions in China and peak driving season in the United States,” said Scholar. 

With supplies tight, Saudi Arabia has raised the price of the oil it sells to Asia.

Adding to the upbeat mood were comments from US commerce chief Gina Raimondo that she was considering lifting tariffs on some goods from China to help in the battle against inflation.

In foreign exchange, the British pound was higher heading into the confidence vote on Johnson’s leadership.

“Markets have responded favourably to the news of the contest, with sterling appreciating,” noted Samuel Tombs, chief UK economist at Pantheon Macroeconomics. 

“This appears to reflect the general principle that markets favour Conservative governments, and the chances of the Tories winning the next election likely will be higher under a new leader.”

Johnson’s public image has suffered in the past year, most notably over the “Partygate” controversy that saw him become the first serving UK prime minister found to have broken the law.

The Conservative government has come under pressure also from a cost-of-living crisis in Britain as UK inflation stands at the highest level in four decades, driven by surging oil and gas prices.

– Key figures at around 1030 GMT –

London – FTSE 100: UP 1.4 percent at 7,640.39 points

Frankfurt – DAX: UP 1.0 percent at 14,601.10

Paris – CAC 40: UP 1.1 percent at 6,559.45

EURO STOXX 50: UP 1.3 percent at 3,832.54

Tokyo – Nikkei 225: UP 0.6 percent at 27,915.89 (close)

Hong Kong – Hang Seng Index: UP 2.7 percent at 21,653.90 (close)

Shanghai – Composite: UP 1.3 percent at 3,236.37 (close)

New York – Dow: DOWN 1.0 percent to 32,899.7 (close)

Brent North Sea crude: UP 0.5 percent at $120.35 per barrel

West Texas Intermediate: UP 0.5 percent at $119.51 per barrel

Euro/dollar: UP at $1.0743 from $1.0719 

Pound/dollar: UP at $1.2560 from $1.2488

Euro/pound: DOWN at 85.52 pence from 85.81 pence

Dollar/yen: DOWN at 130.67 yen from 130.81 yen

Markets mixed as US jobs data give Fed room to hike rates

Equity markets were mixed Monday following losses on Wall Street as a forecast-topping US jobs report gave the Federal Reserve room to continue hiking interest rates, while there was some cheer in China as leaders eased Covid curbs.

US traders took flight after the closely watched non-farm payroll figures Friday, which showed a slowdown in hiring but still with more new posts created than expected.

That came as more officials suggested the Federal Reserve could continue lifting borrowing costs sharply as they try to rein in inflation.

However, with prices being driven higher by factors ranging from the Ukraine war to China’s lockdown-induced slowdown, there are fears the bank’s measures could deal a blow to the world’s biggest economy.

The jump in inflation has forced finance chiefs around the world to tighten monetary policy, with the European Central Bank indicating it will raise rates in July for the first time in more than a decade.

“The critical issue for markets is whether inflation can be brought under control by central banks without generating a recession,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note. 

“Shares are likely to see continued short-term volatility as central banks continue to tighten to combat high inflation, the war in Ukraine continues and fears of recession remain.”

All three main indexes on Wall Street ended deep in the red, with tech firms taking most of the pain, though Asia fared a little better Monday.

Hong Kong, Tokyo, Shanghai and Taipei all rose, but there were losses in Sydney, Mumbai, Singapore, Manila, Bangkok and Jakarta.

London, Paris and Frankfurt rose at the open.

Diana Mousina, of AMP Capital, said: “Positive news around Chinese economic activity and cheaper equity valuations could offer value from a long-term investment perspective, but volatility will remain high in the short-term.” 

Traders took some heart from a wind down of Covid containment measures that have crippled the world’s number two economy for months.

With infections trending down in major cities including Shanghai and Beijing, authorities have allowed some sense of normality to return, raising hopes for a pick-up in consumer activity.

“The expectations for economic recovery is rising as Beijing and Shanghai try best to resume work and production,” Meng Shen, of investment bank Chanson & Co, said.

Adding to the upbeat mood were comments from US commerce chief Gina Raimondo that she was considering lifting tariffs on some goods from China to help in the battle against inflation.

Oil prices — a key driver of inflation — continued to rise, as a pledge by OPEC and other major producers to boost output fell short of what markets had hoped for. 

The increase came as Saudi Arabia also said it had hiked the official selling price for customers in Asia, while demand expectations rose on the back of the easing of some Covid lockdown measures in China and the start of the US summer driving season.

– Key figures at around 0720 GMT –

Tokyo – Nikkei 225: UP 0.6 percent at 27,915.89 (close)

Hong Kong – Hang Seng Index: UP 1.5 percent at 21,405.99

Shanghai – Composite: UP 1.3 percent at 3,236.37 (close)

London – FTSE 100: UP 0.9 percent at 7,600.01

Brent North Sea crude: UP 0.7 percent at $120.57 per barrel

West Texas Intermediate: UP 0.7 percent at $119.66 per barrel

Euro/dollar: UP at $1.0723 from $1.0719 on Thursday

Pound/dollar: UP at $1.2527 from $1.2488

Euro/pound: DOWN at 85.60 pence from 85.81 pence

Dollar/yen: DOWN at 130.51 yen from 130.81 yen

New York – Dow: DOWN 1.0 percent to 32,899.7 (close)

— Bloomberg News contributed to this story —

At least 10 killed in four weekend shootings across US

At least 10 people were killed and more than two dozen wounded in four shootings across the United States this weekend, as lawmakers struggle to respond to the country’s long-running epidemic of gun violence.

The shootings came after a spate of mass killings that have sparked renewed calls for reform of the nation’s gun laws.

An eruption of violence in Chattanooga, Tennessee on Sunday resulted in 14 people being shot, including two killed, while another person died and two more were injured after they were struck by vehicles fleeing the scene, police chief Celeste Murphy said, adding “several” victims remained in critical condition.

The pre-dawn incident occurred near a nightclub.

In Philadelphia on Saturday, two men and a woman were killed when multiple people opened fire on a crowd at a popular South Street nightlife area.

Philadelphia Police Commissioner Danielle Outlaw said one of the victims got into a fight with another man, which could have been the cause of the shooting.

The two others were “innocent bystanders,” she told reporters.

In Saginaw, Michigan, three people were killed and two others wounded in a shooting on Sunday, MLive.com and WEYI television reported, citing police.

And in Clarendon County, South Carolina, five teens and a 12-year-old were among seven people wounded in a shooting at a graduation party on Saturday that killed one adult, police said in a statement.

– Cries for action –

Gun attacks are common in America, but the shock felt over recent mass shootings at a grocery store in Buffalo, New York and an elementary school in Uvalde, Texas — which killed 10 and 21 people respectively — have spurred cries for action.

Democratic Senator Chris Murphy has been working with a bipartisan group of senators on reform measures — a heavy lift with Republicans routinely rejecting most forms of gun control.

Senator Murphy said Sunday the group hoped to hammer together a legislative package that draws at least 10 Republican votes on top of expected support from nearly every Democrat.

“I think the possibility of success is better than ever before,” he told CNN. 

The emerging package, he said, would probably include “significant mental health investment, school safety money, and some modest but impactful changes in gun laws,” including an expansion of background checks for gun buyers.

“Congress needs to do their jobs and pass commonsense regulation that will help stop this nonsense,” an angry Chattanooga Mayor Tim Kelly told reporters.

He called for “mandatory background checks and prohibiting high-capacity magazines that allow shooters to hurt dozens of people without even having to reload.” 

In addition to the massacres in Texas and New York, recent weeks have seen mass shootings at a hospital in Oklahoma and a church in California.

While Republicans have successfully blocked most efforts at gun control for years, some have recently spoken out for change.

In conservative, gun-loving Texas, more than 250 self-declared firearm enthusiasts, including donors to Republican Governor Greg Abbott, signed an open letter supporting efforts at bipartisan gun reform, the Dallas Morning News reported.

The letter, running as a full-page ad in the newspaper, endorsed an expansion of background checks, raising the age to buy guns to 21, and creating “red flag” laws intended to keep guns from people deemed to be at risk of violence.

US President Joe Biden last week called for new gun-control legislation. On Sunday he renewed his call for restrictions on semi-automatic rifles.

“If we can’t ban assault weapons as we should, we must at least raise the age to buy assault weapons to 21,” he tweeted.

A CBS News/YouGov poll published Sunday shows 62 percent of Americans back a nationwide ban on semi-automatic rifles. Support is even higher for background checks on all gun buyers (81 percent) and “red flag” laws (72 percent).

US gun violence has killed more than 18,000 people so far in 2022, including nearly 10,300 suicides, according to the Gun Violence Archive.

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