Global Markets Edge Lower Amid Worries Over Saudi Arabia and China

Global Markets Edge Lower Amid Worries Over Saudi Arabia and China

Global stocks were mainly lower on Monday after strikes in Saudi Arabia led to a jump in oil prices and new data cast further doubt over the health of the Chinese economy.

European stocks lost ground, with the DAX index in Germany down 0.7 percent, while Asian stocks ended the day mixed. Futures markets suggested that Wall Street would open lower.

Futures for Brent crude, the international benchmark, briefly spiked nearly 20 percent when trading started in Asia, but eased since then to less than $66 a barrel, an increase of about 9 percent.

On Saturday, two Saudi oil facilities were hit in an attack that caused a cut in production that may last for days or weeks. But President Trump suggested on Sunday that he could release supplies from the Strategic Petroleum Reserve, and analysts said a shock to the global economy was unlikely because oil supplies remain fairly robust.

The Trump administration said it believes that Iran was behind the strikes, and that they were caused by a combination of drones and missiles. Iranian officials have denied any involvement.

On Monday, the Chinese government released economic data for August that showed disappointing growth in retail sales, industrial production and capital spending.

Hong Kong’s Hang Seng Index finished the day 0.8 percent lower after the release of Chinese economic data and another weekend of violent antigovernment demonstrations.

In China, the Shanghai Composite Index closed unchanged.

South Korea’s Kospi index finished 0.4 percent higher. Japanese markets were closed for a holiday.

In Europe, Britain’s FTSE 100 index was 0.2 percent lower, and the CAC 40 index in France lost 0.7 percent.

Source link

About The Author

We report the News from around the Globe. Please support our advertisers.

Related posts

Leave a Reply