Business News

Global Shares Fall on Tech Sector Losses, Recession Fears

Distressed Patriotic Flag Unisex T-Shirt - Celebrate Comfort and Country $11.29 USD Get it here>>


TOKYO—Asian and European shares were mostly lower Tuesday as losses in the technology sector weighed on global benchmarks.

France’s CAC 40 dipped 0.6 percent to 5,807.12. Germany’s DAX lost 0.7 percent to 12,183.60. Britain’s FTSE 100 dropped 1.2 percent to 6,878.65. The future for the Dow industrials was down 0.7 percent at 29,059.00. The contract for the S&P 500 lost 0.8 percent to 3,597.00.

Taiwan dropped 4.4 percent after reopening from a holiday in the first trading session since the U.S. imposed new limits on exports of semiconductors and chip-making equipment to China. TMSC, the world’s biggest chipmaker, plunged 8.3 percent.

Japan’s Nikkei 225 declined 2.6 percent to 26,401.25. South Korea’s Kospi lost 1.8 percent to 2,192.07. Both markets also were reopening after holidays on Monday.

Hong Kong’s Hang Seng dropped 2.2 percent to 16,830.73.

The Shanghai Composite gained 0.2 percent to 2,979.79, while Australia’s S&P/ASX 200 lost 0.3 percent to 6,645.00.

“Japan and South Korean markets are catching up to previous global market losses, with their exposure to the tech sector spurring a greater extent of the sell-off as mirrored in Wall Street,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a report.

In a bit of encouraging news, Japan reopened to generally unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Pent-up travel spending could help lift the world’s third largest economy as it grapples with slowing global growth and inflation.

But technology stocks have taken a hit from the announcement of tighter export controls on semiconductors and chip manufacturing equipment. The restrictions aim to limit China’s ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors.

In China, technology shares were hit by renewed selling after steep losses on Monday. Chip equipment maker Naura Technology sank 10 percent and Hwatsing Technology dropped 12.2 percent.

Japan’s Sony Group lost 4.1 percent while Renasas shed 5.7 percent.

Wall Street has been roiled by worries over stubbornly hot inflation and the Federal Reserve’s plan to tame high prices by raising interest rates. The goal is to slow economic growth and cool both borrowing and spending to get inflation under control, but the plan risks sending the economy into a recession.

On Monday, the benchmark S&P 500 fell 0.7 percent, extending its losing streak to a fourth trading session. The Dow Jones Industrial Average lost 0.3 percent and the Nasdaq composite fell 1 percent. The Russell 2000 fell 0.6 percent.

Investors will potentially get a more detailed picture of the Fed’s thinking on Wednesday when the central bank releases minutes from its latest policy meeting. That’s when the Fed made another extra-big interest rate increase of three-quarters of a percentage point.

The closely watched report on consumer prices will be released on Thursday and a report on retail sales is due Friday.

This week also brings the latest round of corporate earnings reports, which could provide a clearer picture of how high prices are impacting revenue and profits and what’s expected for the rest of the year and even into 2023.

In energy trading, benchmark U.S. crude fell $1.84 to $89.29 a barrel in electronic trading on the New York Mercantile Exchange. U.S. crude oil dropped 1.6 percent Monday. Brent crude, the international pricing standard, lost $1.70 to $94.49 a barrel.

In currency trading, the U.S. dollar slipped to 145.65 Japanese yen from 145.75 yen. The euro cost 97.02 cents, down from 97.04 cents.

By Yuri Kageyama

The Associated Press

Follow



Source link

TruthUSA

I'm TruthUSA, the author behind TruthUSA News Hub located at https://truthusa.us/. With our One Story at a Time," my aim is to provide you with unbiased and comprehensive news coverage. I dive deep into the latest happenings in the US and global events, and bring you objective stories sourced from reputable sources. My goal is to keep you informed and enlightened, ensuring you have access to the truth. Stay tuned to TruthUSA News Hub to discover the reality behind the headlines and gain a well-rounded perspective on the world.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.