business

Rising stocks, falling oil prices

The US stock index rose on Tuesday and oil prices reached their lowest level in almost two weeks.

The tech-savvy Nasdaq Composite led the major indices in recent trading, rising 1.2%. The Dow Jones Industrial Average and the S&P 500 each rose about 0.7 percent. On Monday, the major indexes rose after a cut-off session, in which tech stocks took advantage.

Investors were overseeing peace talks between Russia and Ukraine, which resumed in Istanbul on Tuesday for the first time in two weeks. Ukraine has in recent days signaled its openness to neutrality as part of a peace deal with Russia. The talks, which ended for the day, were described by both sides as constructive.

“Today, Ukraine looks better and buyers are back,” said Mike Bailey, research director at stock markets FBB Capital Partners. “Whether it’s true or not, investors are going to see what they see in the headlines.”

The stock index has rallied in recent weeks, replacing most of the losses caused by Russia’s invasion of Ukraine. Investors remained calm despite decades of high inflation, fears of a fresh Cowed 19 lockdown in China and a Federal Reserve raising interest rates for the first time since 2018.

Altaf Qasim, head of investment strategy for Europe, said: “Markets seem to have become much more comfortable with the idea that the hiking cycle is here, that it will not derail economic growth and The equity markets are still there, “said Altaf Qasim, head of investment strategy for Europe.

In commodity markets, international oil benchmark Brent crude fell nearly 2.9 percent to 10 106.34 a barrel. US oil prices hovered around 10 103 on Tuesday, down from 12 123.70 recorded in early March. Both measures were in full swing for their shortest closure in about two weeks. The S&P 500’s energy sector fell about 1.8%.

Oil prices rose after Russia’s invasion of Ukraine, when Western boycotts and sanctions on Russia weighed heavily on global oil supplies. A recent wave of Covid-19 lockdown in China is expected to reduce global fuel demand, which could help bring oil prices down further from recent highs.

Nelson Holdings rose more than 20 percent after the Wall Street Journal reported that a consortium led by Elite Management and Brookfield Asset Management was close to buying the company for about ً 16 billion.

US Treasury yield curves have been seen as a warning sign of a recession for decades, and it looks like it is about to light up again. WSJ’s Dion Rabouin explains why the reverse yield curve can be so reliable in predicting a recession and why market watchers are now talking about it. Example: Ryan Triffs

Shares of LHC Group rose nearly 6% after United Healthcare said it would acquire the home health company for 5.4 billion. Shares of Chewy Inc.

Increased to close to 2%. The online pet retailer is set to announce fourth-quarter earnings after the market closes on Tuesday.

With GameStop down about 4.7%, MemStocks reduced some of its recent gains. AMC Entertainment reversed its earlier losses to about 2.4%. Shares of Tesla rose about 2.7%. On Monday, the automaker added 8% after announcing that it was seeking approval from shareholders to distribute its stock.

In Europe, automakers’ shares pushed the Stoxx Europe 600 up nearly 1.5%. Shares of Barclays rose about 3.3 percent in earlier losses, just days after the bank admitted a mistake in selling the loan, which would cost $ 591 million.

In economic news, the Labor Department reported on Tuesday that 11.3 million jobs would be created in February, down from January and December records. As of March 18, 11.2 million were open to private sector employers, according to Jobs Side Ended.

Investors are watching the bond markets for the symbol that many see as a sign of recession. Production on the benchmark 10-year note fell to 2.437% from 2.476% on Monday, while the yield on the two-year note increased to 2.383% from 2.340% in the previous day’s settlement.

When yields on short-term bonds exceed 10-year yields on long-term bonds, they are known as yield curves, which are sometimes seen as a sign of impending recession.

“There are more production curves reversed here than in a recession, but whenever there is a recession, you can look back and find a reversal of the production curve,” Mr Kassam said. ۔

Traders worked on the floor of the New York Stock Exchange on Monday.


Image:

Nicole Pereira / Associated Press

In Asia, Japan’s Nikkei 225 rose 1.1 percent, while Hong Kong’s Hang Seng Index rose 1.1 percent. In mainland China, the Shanghai Composite Index fell 0.3 percent.

Write Will Horner to william.horner@wsj.com and Orla McCaffrey to orla.mccaffrey@wsj.com

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