Mixed Global Markets Face Prudential Costs from Rate Rises

Annabelle Liang, Associated Press

Update

1:49 PDT, Wednesday, October 24, 2018

SINGAPORE (AP) – Global markets were mixed on Wednesday as traders understood the impact of tariffs on US companies after large industrial companies acknowledged that they were facing rising inventories. costs.

KEEP RESULTS: The CAC 40 in France jumped 1% to 5,017.07 and the German DAX added 0.4% to 11,318.25. The UK FTSE 100 rose 0.4% to 6,983.02. Wall Street, however, seemed ready to face a dark situation, with the contract for the S & P 500 down 0.6% and that for the Dow Jones Industrial Average down 0.5%.

THE DAY IN ASIA: Japan's Nikkei 225 index rose 0.4% to 22,091.18, a private survey revealing a recovery in the manufacturing sector in October. The Shanghai Composite Index, which closed down more than 2% on Tuesday, added 0.3% to 2,603.30. The Indian Sensex jumped 0.6% to 34,055.47. The Hang Seng Hong Kong index fell 0.4% to 25,249.78 and the Kospi in South Korea shed 0.4% to 2,097.58. The Australian S & P-ASX 200 lost 0.2% to 5,829.00. Otherwise, shares were lower in the region except in Singapore.

WALL STREET: US indexes fell on Tuesday after a general decline in the slowdown in growth in China and the fear that tariff increases will begin to hurt corporate profits. The S & P 500 index suffered its fifth consecutive loss, down 0.6% to 2740.69. The Dow Jones Industrial Average Index lost 25% to 25,191.43 and the Nasdaq Composite lost 0.4% to 7,437.54. The Russell 2000 Small Business Equity Index was 1.5% lower at 1,526.59.

US BENEFITS: Large US companies have begun a busy week of results with warnings of rising tariff costs. Caterpillar heavy equipment manufacturer reported better than expected earnings and sales in the third quarter. But the company said Trump's taxes on imported steel raised production costs, dropping its stock by 7.6 percent to $ 118.98. 3M, a manufacturer of Post-it Notes and ceramic coatings, has announced disappointing revenues and anticipates additional costs of about $ 100 million next year. This sent his shares tumbling 4.4%. The United States and China are grappling with a trade dispute over technology and have increased tariffs on billions of dollars of reciprocal merchandise.

ANALYST TAKE: "Companies like Caterpillar Inc. and 3M Co. are thought to be undermining market confidence with expectations of future earnings losses and escalating cost reminders due to escalation trade tensions, "said Jingyi Pan of IG in a market comment.

JAPAN FACTORY OUTLOOK: The increase in the preliminary index or "flash" of the purchasing manager, from 52.5 the previous month to 53.1 in October, has given hope that the recent weakness in manufacturing demand could have been transient. The recovery of new export orders, which reached 51.7, the highest level in the last seven months, was seen as excellent news given the concerns raised by China and the United States. trade tensions. Readings above 50 in the survey indicate expansion. Joe Hayes, an economist at IHS Markit, who compiled the survey, said that it "indicated a stronger expansion of all the barometers of macroeconomic health."

ENERGY: The benchmark US crude added 11 cents to 66.54 dollars a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 7 cents to $ 66.43 a barrel in New York. Brent, used for the price of oil in international markets, rose 29 cents to 76.73 dollars per barrel. In the previous session he had lost $ 3.39 to $ 76.44 a barrel.

CURRENCIES: The dollar has strengthened to move from 112.42 yen to 112.48 yen on Tuesday. The euro rose from $ 1,1443 to 1,1453 USD.

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Alex Veiga, editor of AP Business magazine, contributed to this report.