TOKYO (`) — Global stocks remained flat in subdued trading Wednesday as a continued decline in energy prices pointed to falling demand as the global economy slows.
S&P 500 futures rose 0.01% to 4,396.25 and Dow futures edged up 0.04% to 34,230.
Crude oil prices are hitting three-month lows and benchmark U.S. crude oil prices have fallen in seven of the past 10 days. On Wednesday, prices fell slightly again to $76.66 a barrel. The price of a barrel of oil has fallen almost 5% this week and more than 7% in the last 30 days.
Crude oil prices have fallen to levels last seen in July, before the war between Israel and Hamas raised concerns about possible supply disruptions.
Natural gas is also declining, down nearly 10% this week. Both crude oil and natural gas are in negative territory over the course of the year.
Brent crude, the international standard, lost 95 cents to $80.66 a barrel.
Fed Chairman Jerome Powell will open a conference early Wednesday in Washington, DC, where a number of his Federal Reserve colleagues will present, including Gustavo Suarez, Steve Sharpe, Michael Gibson and Andreas Lehnert. John C. Williams, President of the Federal Reserve Bank of New York, will deliver the keynote address.
Investors in Asia are also turning their attention to the prospects of improved relations between China and the US at meetings next week on the sidelines of a Pacific summit.
The Asia-Pacific Economic Cooperation Forum meetings in San Francisco offer leaders from the United States and China an opportunity to improve troubled trade and political ties.
Presidents Joe Biden and Xi Jinping are scheduled to meet then, and White House officials expect to make some modest announcements as part of the tête-à-tête, but fundamental differences in the relationship will remain unchanged.
US Treasury Secretary Janet Yellen will meet with Chinese Vice Premier He Lifeng in San Francisco on Thursday and Friday before finance ministers from `EC member states officially open the summit on Saturday.
France’s CAC 40 rose 0.14% to 6,995.98 and Germany’s DAX lost 0.07% to 15,141.98. Britain’s FTSE 100 rose less than 0.1% to 7,413.84. The S&P 500’s future fell less than 0.1%, while the Dow Industrial’s future remained unchanged.
Hong Kong’s Hang Seng fell 0.5% to 17,588.46 on Wednesday, while the Shanghai Composite fell 0.2% to 3,052.37. The gloom over China’s worse-than-expected export data canceled out positive momentum from the International Monetary Fund raising its growth forecast. It raised its 2023 GDP growth forecast to 5.4% from 5%, but predicted growth will slow next year.
Japan’s benchmark Nikkei 225 fell 0.3% to close at 32,166.48. South Korea’s Kospi lost 0.9% to 2,421.62. Australia’s S&P/ASX 200 rose 0.3% to 6,995.40.
Moody’s Investors Service affirmed the Japanese government’s A1 ratings for long-term foreign currency and local currency issuers, as well as local currency senior unsecured ratings. The outlook was kept at stable.
“Today’s rating action reflects Moody’s expectation that Japan’s ability to support its very high debt burden remains intact, supported by the maintenance of its impressive credit strength, including robust domestic liquidity, supported by continued growth in private sector savings is driven,” it said.
According to Moody’s, Japan’s biggest concerns were its “structural weaknesses,” such as its aging population.
The weak trade data highlights ongoing external challenges to Asian economic growth, Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
“Despite the robust U.S. economic momentum observed in the third quarter, cyclical stocks are struggling to generate sustained interest among investors anticipating a possible slowdown in economic growth,” he said.
In foreign exchange trading, the US dollar rose to 150.77 Japanese yen from 150.37 yen. The euro was at $1.0662, down from $1.0702.
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