Wall St. success leaves global stocks undecided

Global stock markets showed mixed results on Monday, following a week in which Wall Street ended on a high note.

In Europe, trading was relatively flat. The UK’s FTSE 100 slightly increased by 0.1% to 8,444.23, while Germany’s DAX decreased marginally by 2.40 points to 18,770.45, and the CAC 40 in France dipped by 0.1% to 8,210.88.

Futures for the S&P 500 saw a slight rise of 0.1%, and those for the Dow Jones Industrial Average were also marginally up by less than 0.1%.

Asian markets were influenced by several economic indicators, including disappointing Chinese lending data and the prospect of increased U.S. tariffs on Chinese exports, which dampened investor sentiment.

Japan’s Nikkei 225 dropped by 0.1% to 38,179.46 ahead of the country’s first-quarter economic growth data expected on Thursday. Conversely, Hong Kong’s Hang Seng Index saw a boost of 0.8% to 19,108.78, largely due to purchases of technology stocks.

The Shanghai Composite Index fell by 0.2% to 3,148.02 after reports showed a continuous rise in China’s consumer inflation for the third month in April, while the producer price index, a measure of industrial prices, declined for the nineteenth consecutive month. This decline in new loans and total credit was partially attributed to fewer government bonds issued, reflecting ongoing weakness in demand, particularly in the real estate sector.

Further tensions are expected as the Biden administration plans to increase tariffs significantly on key Chinese imports like electric vehicles and semiconductors. The anticipated hike in electric vehicle tariffs could see them rising from 25% to 100%. This news led to declines in Chinese electric vehicle manufacturers like BYD and NIO, which saw their stocks fall by 0.2% and 2%, respectively.

Elsewhere in Asia, South Korea’s Kospi barely moved, dropping less than 0.1% to 2,727.21, while Australia’s S&P/ASX 200 edged up by a single point to 7,750.00. Taiwan’s Taiex experienced a rise of 0.7%, bolstered by a significant revenue increase reported by TSMC, a leading computer manufacturer. India’s Sensex, however, decreased by 0.6%.

In the U.S., the S&P 500 increased by 0.2% on Friday, marking its third consecutive winning week, although initial gains were pared following a disheartening U.S. consumer sentiment report. The Dow Jones Industrial Average rose by 0.3%, but the Nasdaq composite slightly declined by 5.40 points.

The possibility of the Federal Reserve cutting interest rates this year, along with strong corporate earnings reports, has helped push the S&P 500 close to its record high. However, a preliminary report from the University of Michigan indicated a significant downturn in U.S. consumer sentiment, raising concerns about future inflation expectations.

In commodities, U.S. crude oil prices increased by 33 cents to $78.59 a barrel, while Brent crude rose by 27 cents to $83.06 a barrel. In currency markets, the U.S. dollar appreciated slightly against the Japanese yen to 155.88 and the euro increased to $1.0777 from $1.0771.