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Wall Street shares stabilize after three days of decline

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U.S. stocks closed Monday after three consecutive session losses as traders assessed labor market conditions and focused on Wednesday’s new inflation data, which will have a big impact on whether interest rates will rise in late July. became firm.

Wall Street’s blue chip S&P 500 index has been touring between gains and losses earlier in the day after a series of declines late last week. The stock fell 0.1% in mid-trade. The tech-heavy Nasdaq Composite Index fell 0.2%. The KBW Bank Index rose 0.4% despite US regulator Michael Burr’s proposal to tighten capital controls on the country’s biggest financial institutions.

In Europe, the region-wide Stoxx 600 was up 0.2%, France’s Cac 40 was up 0.4% and Germany’s Dax was up 0.3%, but fell in early trading. The London FTSE 100 rose 0.2%.

The US move comes after Bureau of Labor Statistics data showed it was the world’s largest economy. 209,000 jobs added in June.

Friday’s jobs report fell short of market expectations for the first time in 15 months, but Mike Zigmont, head of trading and research at Harvest Volatility Management, said it “confused” some traders. “Is this strong enough?” [Federal Reserve] to continue hiking? Is this weak enough to keep the Fed on hold? Is the economy so weak compared to the past few strong months that you think a recession is coming soon?”

Analysts at JPMorgan said a “remaining tight” labor market “paved the way” for another rate hike by the Fed later this month. After that, the central bank is expected to “extend its hold period” as economic growth slows and the need for further monetary tightening diminishes.

In a busy week punctuated by speeches from senior Fed officials, investor attention will be focused on headline U.S. consumer price inflation, which is expected to slow in June, with the Fed calling for a resumption of rate hikes at its July meeting. pressure will ease.

If headline inflation falls as expected to 3.1% in June, it will be the lowest since March 2021.

The situation is quite different in China, which is plagued by low inflation, unlike the United States and Europe.

Data released on Monday showed the world’s second-largest economy was on the brink of deflation. China’s consumer price index fell 0.2% month-on-month, with factory prices falling at the fastest pace in seven years as demand for consumer and industrial goods waned.

Major Asian markets closed in positive territory, with Hong Kong’s Hang Seng Index up 0.6% and China’s CSI300 Index up 0.5%.

Analysts said weak economic data underpinned the People’s Bank of China’s rationale for further rate cuts and fiscal support injections, but Beijing’s support was by no means guaranteed.

Rabobank analyst Michael Every said China’s “plunging into a deflationary world” has increased the need for stimulus measures, including tax cuts and investments in strategic sectors. However, “due to current debt levels and the ongoing real estate crisis, we do not expect any significant stimulus.”

Investor concerns about China’s sluggish recovery this year are likely to grow further as price growth remains stagnant. Many expected China to explode again after the strict zero-corona measures were lifted at the end of 2022.

The international benchmark Brent crude fell Monday morning before rebounding to $78.50 a barrel.

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U.S. stocks closed Monday after three consecutive session losses as traders assessed labor market conditions and focused on Wednesday’s new inflation data, which will have a big impact on whether interest rates will rise in late July. became firm. Wall Street’s blue chip S&P 500 index has been touring between gains and losses earlier in the day after a series of declines late last week. The stock fell 0.1% in mid-trade. The tech-heavy Nasdaq Composite Index fell 0.2%. The KBW Bank Index rose 0.4% despite US regulator Michael Burr’s proposal to tighten capital controls on the country’s biggest financial institutions.In Europe, the region-wide Stoxx 600 was up 0.2%, France’s Cac 40 was up 0.4% and Germany’s Dax was up 0.3%, but fell in early trading. The London FTSE 100 rose 0.2%.The US move comes after Bureau of Labor Statistics data showed it was the world’s largest economy. 209,000 jobs added in June.Friday’s jobs report fell short of market expectations for the first time in 15 months, but Mike Zigmont, head of trading and research at Harvest Volatility Management, said it “confused” some traders. “Is this strong enough?” [Federal Reserve] to continue hiking? Is this weak enough to keep the Fed on hold? Is the economy so weak compared to the past few strong months that you think a recession is coming soon?”Analysts at JPMorgan said a “remaining tight” labor market “paved the way” for another rate hike by the Fed later this month. After that, the central bank is expected to “extend its hold period” as economic growth slows and the need for further monetary tightening diminishes. In a busy week punctuated by speeches from senior Fed officials, investor attention will be focused on headline U.S. consumer price inflation, which is expected to slow in June, with the Fed calling for a resumption of rate hikes at its July meeting. pressure will ease.If headline inflation falls as expected to 3.1% in June, it will be the lowest since March 2021. The situation is quite different in China, which is plagued by low inflation, unlike the United States and Europe. Data released on Monday showed the world’s second-largest economy was on the brink of deflation. China’s consumer price index fell 0.2% month-on-month, with factory prices falling at the fastest pace in seven years as demand for consumer and industrial goods waned.Major Asian markets closed in positive territory, with Hong Kong’s Hang Seng Index up 0.6% and China’s CSI300 Index up 0.5%. Analysts said weak economic data underpinned the People’s Bank of China’s rationale for further rate cuts and fiscal support injections, but Beijing’s support was by no means guaranteed. Rabobank analyst Michael Every said China’s “plunging into a deflationary world” has increased the need for stimulus measures, including tax cuts and investments in strategic sectors. However, “due to current debt levels and the ongoing real estate crisis, we do not expect any significant stimulus.”Investor concerns about China’s sluggish recovery this year are likely to grow further as price growth remains stagnant. Many expected China to explode again after the strict zero-corona measures were lifted at the end of 2022.The international benchmark Brent crude fell Monday morning before rebounding to $78.50 a barrel.
https://www.ft.com/content/adbbef31-cf84-4507-a5b5-06ffbd2ec681 Wall Street shares stabilize after three days of decline

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