AVN 67.05 Increased By ▲ 1.85 (2.84%)
BAFL 31.05 Increased By ▲ 0.31 (1.01%)
BOP 4.88 Increased By ▲ 0.08 (1.67%)
CNERGY 3.78 Increased By ▲ 0.07 (1.89%)
DFML 14.49 Increased By ▲ 0.28 (1.97%)
DGKC 41.61 Increased By ▲ 0.56 (1.36%)
EPCL 46.22 Decreased By ▼ -0.23 (-0.5%)
FCCL 11.63 Increased By ▲ 0.23 (2.02%)
FFL 5.11 Increased By ▲ 0.06 (1.19%)
FLYNG 5.80 No Change ▼ 0.00 (0%)
GGL 10.40 Increased By ▲ 0.07 (0.68%)
HUBC 67.54 Increased By ▲ 0.67 (1%)
HUMNL 5.77 Increased By ▲ 0.06 (1.05%)
KAPCO 28.00 Increased By ▲ 0.24 (0.86%)
KEL 2.29 Increased By ▲ 0.09 (4.09%)
LOTCHEM 25.06 Increased By ▲ 0.16 (0.64%)
MLCF 21.67 Increased By ▲ 0.23 (1.07%)
NETSOL 86.06 Increased By ▲ 2.46 (2.94%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.06 Increased By ▲ 0.05 (0.45%)
PIBTL 4.23 Increased By ▲ 0.01 (0.24%)
PPL 80.15 Increased By ▲ 5.67 (7.61%)
PRL 13.64 Increased By ▲ 0.21 (1.56%)
SILK 0.89 Decreased By ▼ -0.03 (-3.26%)
SNGP 43.47 Increased By ▲ 3.07 (7.6%)
TELE 5.93 Increased By ▲ 0.07 (1.19%)
TPLP 15.82 Increased By ▲ 0.42 (2.73%)
TRG 114.88 Increased By ▲ 3.47 (3.11%)
UNITY 13.76 Increased By ▲ 0.01 (0.07%)
WTL 1.16 Increased By ▲ 0.02 (1.75%)
BR100 4,124 Increased By 87 (2.16%)
BR30 14,930 Increased By 518.1 (3.59%)
KSE100 41,191 Increased By 719.6 (1.78%)
KSE30 15,494 Increased By 331.4 (2.19%)
Markets

Stocks drop as traders weigh recovery, new infections

  • Traders looked past Wall Street's strong lead Friday, supported by data showing US retail sales flattened last month.
Published May 17, 2021
Follow us

LONDON: Stock markets mostly dropped and the dollar fell Monday, as optimism about the global recovery was offset by concerns about a spike in new infections in several countries that have officials battling to avert new lockdowns.

Traders looked past Wall Street's strong lead Friday, supported by data showing US retail sales flattened last month.

That helped ease traders' fears that a surge in inflation could force the Federal Reserve to wind back its ultra-loose monetary policies sooner than expected.

However, a fall in consumer confidence owing to rising prices indicated the issue was unlikely to go away any time soon, and analysts said central bank officials had to tread a fine line between getting the economy back on its feet and keeping inflation under control.

"On the one side, we have the Fed's view, apparently embraced by equity investors, implying there is nothing to see here, given that base effects and reopening dynamics mean we should expect volatility in the data," said National Australia Bank's Rodrigo Catril.

"On the other side of the argument... (are) rising concerns that inflation is becoming unanchored with a decline in consumer sentiment a reflection of the negative impact inflation is having on disposable income."

Focus this week is on the release of minutes from the Fed's latest policy meeting at the end of last month, which will be pored over for an idea about members' views on inflation in light of surging commodity prices, supply bottlenecks and economic reopenings.

"Record highs in copper prices and fears over extended oil price gains will be hard to ignore" heading into the second half of the year, said Eric Robertsen at Standard Chartered.

"The Fed believes this is part of the economic reopening narrative" and will hold off making any moves now, he added. "But it might start looking over its shoulder if prices stay high."

Elsewhere, bitcoin fell to $42,185 briefly, its lowest since February, after Elon Musk on Sunday appeared to suggest his Tesla carmaker may sell -- or already had sold -- its holdings in the cryptocurrency.

The unit later pared the losses to sit at $44,455.

Tesla had already hammered the digital currency last week when it said it will halt bitcoin transactions because of environmental concerns.

In company news, trading in Hong Kong's largest pro-democracy media group was suspended Monday, days after authorities froze the assets of its jailed owner Jimmy Lai under a new national security law.

Next Digital Limited -- which publishes the Apple Daily newspaper -- said it would halt trading "pending the release of an announcement" about Lai's frozen assets, in a statement to the city's stock exchange.

Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.7 percent at 6,993.57 points

Frankfurt - DAX 30: DOWN 0.3 percent at 15,367.46

Paris - CAC 40: DOWN 0.4 percent at 6,359.16

EURO STOXX 50: DOWN 0.4 percent at 4,001.06

Tokyo - Nikkei 225: DOWN 0.9 percent at 27,824.83 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 28,194.09 (close)

Shanghai - Composite: UP 0.8 percent at 3,517.62 (close)

New York - Dow: UP 1.1 percent at 34,382.13 (close)

Euro/dollar: UP at $1.2166 from $1.2140 at 2115 GMT on Friday

Pound/dollar: UP at $1.4111 from $1.4100

Euro/pound: UP at 86.21 pence from 86.07 pence

Dollar/yen: DOWN at 109.12 yen from 109.34 yen

Brent North Sea crude: DOWN 0.1 percent at $68.67 per barrel

West Texas Intermediate: DOWN 0.1 percent at $65.33 per barrel

Comments

Comments are closed.

Stocks drop as traders weigh recovery, new infections

KSE-100 jumps over 700 points amid return of positive sentiment

Second hike in two weeks: Honda Atlas jacks up car prices by up to Rs550,000

Govt projection of achieving $3bn current account surplus in FY23 ‘unrealistic’: PBC

IHC bars Sindh, Balochistan police from taking action against Sheikh Rashid

Govt schedules All Parties Conference for February 9

Kohinoor Textile board recommends buyback of 30 million ordinary shares

Islamabad police say security being improved at F-9 Park after rape incident

Major earthquake hits Turkey, Syria; hundreds dead, many trapped

Saudi Arabia raises price for March Arab Light crude to Asia: sources

Tariff of indigenous gas-run CPPs likely to be reviewed