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TOKYO (AP) — European benchmarks were mixed Tuesday after gains in most Asian markets despite weakness in technology shares, including Japan’s Softbank.
Such concerns stem from worries about inflation and what central banks can do to curb that trend. Higher interest rates tend to lower stock prices.
Fighting in Ukraine and an attack on Europe’s largest nuclear plant are other factors weighing on the market.
The attacks, which Moscow and Kyiv have accused each other of firing at a nuclear power plant in Russia-controlled southeastern Ukraine, have fueled international concern. The Zaporizhia nuclear power plant has six nuclear reactors, and the fighting around it has caused a nuclear disaster.
France’s CAC added 40% to 6,526.13, while Germany’s DAX fell 0.4% to 13,632.20. Britain’s FTSE 100 gained less than 0.1% to 7,489.68. Futures for the S&P 500 and the Dow Jones Industrial Average rose 0.2%.
In Asian trade, Japan’s benchmark Nikkei 225 ended up 0.9% at 27,999.96.
Japanese technology investor SoftBank Group Corp fell more than 7 percent. On Monday, it reported a record quarterly loss of $23 billion. A global nose-dive into technology-related issues, such as Chinese e-commerce giant Alibaba, has weighed down its sprawling investment portfolio.
Australia’s S&P/ASX 200 rose 0.1% to 7,029.80. South Korea’s Kospi rose 0.4% to 2,503.46.
Hong Kong’s Hang Seng pared earlier gains by 0.2% to 20,003.44, while the Shanghai Composite rose 0.3% to 3,247.43.
Analysts tracking Asian markets say regional tensions remain a concern after the recent visit of US House Speaker Nancy Pelosi to Taiwan due to the conflict between China and Taiwan.
China has said threats around Taiwan are extending military exercises, disrupting shipping and air traffic and posing a serious threat to trade.
Any major developments on the China/Taiwan front could affect overall risk appetite, so it’s worth keeping an eye on the geopolitical landscape. China has confirmed it will extend military exercises around Taiwan, and the military will conduct ‘regular’ exercises east of the middle line in the middle of the Taiwan Strait, Anderson Alves at Active Trades said.
The increasing number of cases of COVID-19 in China, Japan and some other Asian countries and the impact on supply chains that are the lifelines for some of the region’s largest manufacturers are worrying.
Tech stocks were the biggest drag on Wall Street on Monday. The S&P 500 was down 0.1% at 4,140.06 and the Nasdaq was down 0.1% at 12,644.46. The Dow Jones industrial average closed 0.1% higher at 32,832.54. The Russell 2000 rose 1% to 1,941.21.
It’s been a busy week as investors weigh whether the U.S. Federal Reserve’s efforts to slow the economy and curb inflation are working, or whether the central bank will continue to hike interest rates. Investors worry that the Fed will hit the brakes too hard and trigger a recession.
The Fed is expected to raise short-term interest rates by another 0.75 percentage point at its next meeting.
The U.S. Department of Labor will release its July consumer price report on Thursday. Last week, reports showed that the US employment market was strong.
Investors are still evaluating the latest corporate earnings, which could provide more detailed information on how much inflation is hurting consumers and businesses.
In energy trading, benchmark U.S. crude fell $1.37 to $89.39 on the New York Mercantile Exchange’s electronic trading platform. It rose 1.89 to $90.76 a barrel on Monday.
Brent crude lost $1.41 to $95.24 a barrel.
In currency trading, the US dollar fell from 134.98 yen to 134.90 Japanese yen. The euro was at $1.0239, up from $1.0193.
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Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama.
Copyright 2022 The Associated Press. all rights reserved. This article may not be published, distributed, rewritten or redistributed without permission.
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