European energy and mining stocks rallied with oil and metals, while retailers and banks fell. UBS Group AG dropped more than 5 per cent after reporting weaker-than-expected profit, while Walmart Inc. tumbled in US premarket trading on its surprise warning and Alibaba Group Holding Ltd. jumped amid plans to seek a primary listing in Hong Kong.
Traders are braced for a widely expected 75 basis points Fed rate rise on Wednesday, part of campaign to tackle inflation, as well as corporate reports from the likes of Apple Inc. and Alphabet Inc. They’re also assessing risks including ongoing disruptions to European gas supplies from Russia and China’s COVID curbs and property woes.
Commodities prices are surging as signs of tightness outweigh economic concerns. European natural gas rose to the highest level in more than four months, while crude and copper jumped. Energy ministers from the European Union’s 27 member states are meeting in Brussels to wrangle over backing a proposal from the European Commission to regulate consumption.
“This is most likely a bear market rally and there are significant risks still facing this market,” she said on Bloomberg Television. “We’re probably going to be seeing a lot of choppiness and potentially some further declines in the market before the year end.”Alphabet, Apple, Amazon, Microsoft, Meta earnings due this weekIMF’s world economic outlook update, TuesdayAustralia CPI, Wednesday
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