A mixed start for stocks as crude oil prices fall sharply | Business

NEW YORK (AP) — Stocks got off to a mixed start on Wall Street on Monday, with gains by some big tech companies offset by weakness in energy stocks as crude oil prices fell sharply. The S&P 500 was moving between small gains and losses early on. The Dow Jones Industrial Average was down 0.4% and the tech-heavy Nasdaq added 0.8%. Crude oil prices fell about 7% as China began to lock down Shanghai, its largest city and financial hub, to conduct mass testing and control a growing COVID-19 outbreak. Bond yields retreated after soaring this month.

THIS IS A BREAKING NEWS UPDATE. AP’s previous story follows below.

NEW YORK (AP) — Wall Street was geared for gains ahead of Monday’s market open as global stocks mostly rose and oil prices fell after Shanghai entered a nine-day semi-lockdown .

Futures on Dow industrials and the S&P 500 each rose 0.2% in premarket trading.

Adding to concerns over the economic impact of the pandemic, Shanghai entered a nine-day semi-lockdown. With China’s economic growth already slowing, this extreme measure could deepen unemployment, undermine consumer demand and further complicate already struggling global supply chains.

Still, the Shanghai Composite Index edged up 0.1% to 3,214.50.

At the start of European trading, Britain’s FTSE 100 gained 0.7%, Germany’s DAX jumped 2.1% and France’s CAC 40 gained 1.8%.

Russian stocks tumbled as its stock market resumed all-company trading on Monday after a month-long hiatus following the invasion of Ukraine.

The benchmark MOEX slid 2.2% after the Moscow Stock Exchange reopened for all of its hundreds of listed companies, but with restrictions still in place to limit volatility. State-owned energy giant Gazprom fell 3.7%, while airline Aeroflot rose 3%.

The last full trading session in Moscow was on February 25, a day after the index fell by a third after President Vladimir Putin ordered the invasion of Ukraine.

Last week, the exchange tentatively reopened for two days, with investors only allowed to trade 33 of the 50 companies on the MOEX.

In addition to lingering concerns over the pandemic, the war in Ukraine and inflation are clouding the global outlook. Another concern in these uncertain times is the Federal Reserve’s moves to raise interest rates to counter soaring prices.

The Japanese yen fell to its lowest level in seven years against the US dollar after the central bank announced that it would buy 10-year Japanese government bonds at a fixed rate of 0.25% for three days at from Tuesday. By buying the bonds, the Bank of Japan is trying to keep interest rates in check at a time when rates are rising in the United States and elsewhere.

The BOJ has kept its own benchmark rate at an ultra-low minus 0.1% for years, trying to encourage borrowing and spending to help spur faster economic growth. Its resolve to keep interest rates from rising is being tested by the weak yen, which favors exporters but raises the cost of imports of manufacturing materials and crucial consumer goods, especially oil and gas.

The dollar was trading at 124.18 yen on Monday evening, against 122.07 yen on Friday evening. The euro traded at $1.0962, down from $1.0989.

The tide is unlikely to reverse any time soon, SPI Asset Management’s Stephen Innes said in a commentary.

“There is no evidence yet that the BOJ is willing to push back on (Japanese yen) weakness due to rising import price pressures,” he said.

Japan’s benchmark Nikkei 225 slid nearly 0.7% to end at 27,943.89 on Monday, while Australia’s S&P/ASX 200 gained 0.1% to 7,412.40. The South Korean Kospi fell less than 0.1% to 2,729.56. Hong Kong’s Hang Seng jumped 1.3% to 21,684.97.

Ukraine and Russia are to meet earlier this week in Turkey. Ukrainian President Volodymyr Zelenskyy said in an overnight national address on Sunday that he hoped for “peace without delay” but would guarantee his country’s sovereignty and territorial integrity.

The war adds to concerns about instability, energy prices and economic downturns in various countries.

Oil prices have been volatile since the start of Russia’s war against Ukraine in February. Russia is the second largest exporter of crude. Energy prices were already high, but the dispute raised concerns that a worsening supply shortage could further aggravate persistently rising inflation.

The UAE energy minister on an oil alliance with Russia, saying it is an important member of the OPEC+ global energy alliance with its production of 10 million barrels of oil per day.

“And leaving politics aside, this volume is needed today,” Suhail al-Mazrouei said. “Unless someone wants to come in and bring 10 million barrels, we don’t see anyone being able to replace Russia.”

Led by Saudi Arabia and Russia, the alliance has the ability to boost oil production and drive down crude prices that have topped $100 a barrel.

Benchmark U.S. crude fell $6.67 to $107.23 a barrel Monday in electronic trading on the New York Mercantile Exchange. It rose 1.4% to settle at $113.90 a barrel on Friday evening. Brent, the international price standard, fell $6.27 to $111.10 a barrel.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.