Asian, European shares mixed after US stocks retreat from record high

Asian and European shares traded mixed on Monday after US stocks retreated from their all-time high following weaker economic data. Investors also monitored oil prices, US interest rate policy, corporate earnings and uncertainty over oil supplies through the Strait of Hormuz

Bangkok: Shares were mixed in Europe and Asia on Monday after US stocks edged back from their all-time high following a weaker-than-expected report on the US economy. Oil prices slipped.

In early European trading, Germany’s DAX was nearly unchanged at 26,429.59, while the CAC 40 in Paris lost 0.1 per cent to 8,630.45.

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Britain’s FTSE 100 gained 0.2 per cent to 10,773.91.

The future for the S&P 500 edged 0.1 per cent higher, while that for the Dow Jones Industrial Average slipped 0.1 per cent.

Tokyo’s Nikkei 225 index gained 0.7 per cent to 69,220.25 after the Japanese government reported the economy grew slightly faster than forecast in the April-June quarter, expanding at a 1.1 per cent annual pace even as private spending and investment stayed flat and export growth slowed. In quarterly terms, the economy grew 0.3 per cent in the second quarter of the year.

In Hong Kong, the Hang Seng picked up 1.6 per cent to 25,517.88, while the Shanghai Composite index rose 1.4 per cent to 3,982.65.

Markets in South Korea were closed for a holiday.

In Australia, the S&P/ASX 200 slipped 0.5 per cent to 9,073.20.

Taiwan’s Taiex gained 0.1 per cent, while the Sensex in India fell 0.3 per cent.

On Friday, the S&P 500 fell 0.2 per cent following a report that showed shoppers spent less at US retailers last month. Such data could help the Federal Reserve keep interest rates low, which is positive for investors. But it also suggests growth may be slowing at a time when inflation is still high.

The Fed has no good tool to fix both a stagnating economy and high inflation at the same time, which is why what’s called “stagflation” is seen as a worst-case scenario.

The Dow industrials dipped 0.2 per cent, and the Nasdaq composite shed 0.3 per cent.

Wall Street will get financial updates from some of the nation’s biggest retailers this week.

Home Depot reports its latest results on Tuesday, followed by Target and Lowes on Wednesday and then Walmart on Thursday. The results will help give investors a more detailed picture of how businesses and consumers are handling stubbornly high inflation.

Wall Street and economists will get more details about the Federal Reserve’s interest rate policy when the central bank releases minutes from the July meeting on Wednesday.

In other dealings early Monday, Brent crude, the international standard, declined 0.3 per cent to USD 88.24 per barrel, while US benchmark crude slipped 0.9 per cent to USD 81.65 per barrel.

With prospects for a deal toward ending the war with Iran unclear, the stability of oil supplies remains uncertain with the Strait of Hormuz nearly closed, blocking a vital route for oil and gas tankers from the Middle East.

The US dollar fell to 158.88 Japanese yen from 159.32 yen. The euro rose to USD 1.1611 from USD 1.1588.