Global stock markets up after Wall St sinking

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Global stock markets gained on Wednesday after Wall Street slumped on weak U.S. home sales and a profit warning from a top social media brand.

London, Frankfurt, Shanghai and Hong Kong advanced. Oil prices rose more than $1 a barrel to stay above $110.

Wall Street futures were mixed. On Tuesday, the benchmark S&P 500 lost 0.8%.

“The overall mood in stock markets remains largely pessimistic,” IG’s Jun Rong Yeap said in a report.

In early trading, the FTSE 100 in London gained 0.5% to 7,519.16 and the Frankfurt DAX gained 0.4% to 13,972.15. The CAC 40 in Paris rose 0.2% to 6,268.63.

On Wall Street, the S&P 500 future was down 0.1% higher. That of the Dow Jones Industrial Average lost less than 0.1%.

Investors are nervous about the impact of interest rate hikes in the United States and other Western economies to curb soaring inflation, as well as Russia’s war on Ukraine and to the Chinese economic slowdown.

On Tuesday, the Dow gained 0.2% while the Nasdaq composite, dominated by tech stocks, slipped 2.3% after the warning from Snapchat’s parent company.

Investors abandoned social media stocks. Snap fell 43.1%, its biggest one-day drop on record. Facebook’s parent company, Meta, fell 7.6%. Google’s parent company fell 5.1%.

The S&P is down 18% from its peak on Jan. 3, putting it on the verge of a bear market, down 20% from the previous peak.

Homebuilders slumped after the government announced April sales of newly built homes fell 26.9% from a year earlier. KB Home fell 2.7%.

In Asia, the Shanghai Composite Index gained 1.2% to 3,107.46 while the Nikkei 225 in Tokyo lost 0.3% to 26,677.80. The Hang Seng in Hong Kong gained 0.3% to 20,171.27.

Seoul’s Kospi rose 0.4% to 2,617.22 and Sydney’s S&P-ASX 200 added 0.4% to 7,155.20.

The Indian Sensex fell 0.2% to 53,926.64. New Zealand, Singapore and Jakarta fell while Bangkok advanced.

On Wednesday, the Federal Reserve is due to provide insight into its decision-making by releasing minutes from its latest policy meeting.

In energy markets, benchmark U.S. crude rose $1.28 to $111.05 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 52 cents on Tuesday to $109.77. Brent crude, the price basis for international oil trade, advanced $1.16 to $111.85 a barrel in London. It was up 14 cents the previous session at $113.56.

The dollar gained 127.05 yen from 126.82 yen on Tuesday. The euro fell to $1.0669 from $1.0693.