Stocks end mostly higher amid mixed economic news

Soaring gas prices would likely push European countries into recession


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Global stocks mostly rose on Tuesday as investors were rocked by mixed economic news and a spike in natural gas prices in Europe that later reversed.

Gas prices in Europe hit a six-month high, heightening fears of recession as the region faces the prospect of rationing following cuts in supplies from Russia amid the war in Ukraine .

But prices retreated later in the day, as did oil prices which fell for a third day, falling nearly 3% to the lowest level since late January amid prospects of an influx of new supply. as well as fears that demand will decline due to slowdowns or weak growth in major economies such as China.

In Europe, the benchmark price for Dutch natural gas TTF jumped to more than 250 euros per megawatt hour – the highest level since early March, shortly after Russia invaded Ukraine – but at the end On the US day, the price was down to 223.75, below Monday’s close.

Soaring gas prices would likely push European countries into recession, hitting demand for other goods like oil.

“A wave of concern is growing over the darkening outlook for global growth as economies slow around the world, driving down oil prices in expectation of falling demand,” noted Susannah Streeter. , senior investment and market analyst at Hargreaves Lansdown.

Signs that Iran is moving towards a nuclear deal with world powers have added downward pressure on energy prices, with a deal seen as allowing the country to restart oil sales in the world. global market.

Analysts said Tehran could deliver 2.5 million barrels a day, giving a much-needed boost to supplies, which have been hammered by sanctions on Russia in response to its invasion of Ukraine.

Libya also boosted production, helping prices fall to their lowest level in six months and wiping out gains seen after the start of the war in Ukraine.

But analysts have warned there may still be some way to go on a deal with Iran, due to upcoming US congressional elections.

US stocks rallied on Tuesday, ending the day mixed after rebounding for most of the session as investors digested strong retail company earnings but disappointed housing data.

Stocks started the day in the doldrums after data showed U.S. new home construction plunged in July, but were buoyed when Walmart reported a revenue boost, the retail giant detail also claiming that its annual profit would not be as bad as it predicted three weeks ago.

“We can’t say that Walmart had extraordinary results but it was better than expected. Overall, Wall Street was too pessimistic,” Gregori Volokhine of Meeschaert Financial Services told AFP.

Shares of the global retail giant rose more than five percent.

European stocks advanced despite dismal survey data from Germany, as the relatively weak euro and pound gave a boost.

West Texas Intermediate: DOWN 2.7% to $87.00 a barrel

North Sea Brent Crude: DOWN 2.6% to $92.61 a barrel

New York – Dow Jones: UP 0.7% to 34,152.01 (closing)

New York – S&P 500: UP 0.2% to 4,305.2 (closing)

New York – Nasdaq: 0.2% drop to 13,102.55 (closing)

EURO STOXX 50: UP 0.4% to 3,805.22 (closing)

London – FTSE 100: UP 0.4% to 7,536.06 (closing)

Frankfurt – DAX: UP 0.7% to 13,910.12 (closing)

Paris – CAC 40: UP 0.3% to 6,592.58 (closing)

Tokyo – Nikkei 225: APARTMENT at 28,868.91 (closing)

Hong Kong – Hang Seng Index: DOWN 1.1% to 19,830.52 (closing)

Shanghai – Composite: UP 0.1% to 3,277.88 (close)

Euro/dollar: UP at $1.0166 vs. $1.0166 on Monday

Pound/dollar: UP to $1.2092 from $1.2055

Euro/pound: DOWN to 84.04 pence vs. 84.29 pence

Dollar/yen: DOWN to 134.21 yen from 133.33 yen


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