By Associated Press
Global stock markets gained Wednesday after Wall Street sank on weak U.S. housing sales and a profit warning by a prominent social media brand.
London, Frankfurt, Shanghai and Hong Kong advanced. Oil prices rose more than $1 per barrel to stay above $110.
Wall Street stock index futures were mixed. On Tuesday, the benchmark S&P 500 /zigman2/quotes/210599714/realtime SPX +0.16% index lost 0.8%.
“The overall mood in equity markets remains largely downbeat,” Jun Rong Yeap of IG said in a report.
In early trading, the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.86% in London gained 0.5% to 7,519.16 and Frankfurt’s DAX /zigman2/quotes/210597999/delayed DX:DAX -2.91% added 0.4% to 13,972.15. The CAC 40 in Paris rose 0.2% to 6,268.63.
On Wall Street, the S&P 500 future /zigman2/quotes/209948968/delayed ES00 -0.51% was less than 0.1% higher. That for the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 -0.49% lost less than 0.1%.
Investors are on edge about the impact of interest rate hikes in the United States and other Western economies to cool surging inflation, as well as Russia’s war on Ukraine and a Chinese economic slowdown.
On Tuesday, the Dow /zigman2/quotes/210598065/realtime DJIA -0.42% gained 0.2% while the Nasdaq composite /zigman2/quotes/210598365/realtime COMP +1.75% , dominated by tech stocks, slid 2.3% after the warning by Snapchat’s parent.
Investors dumped social media stocks. Snap /zigman2/quotes/205087158/composite SNAP +9.19% plummeted 43.1%, its biggest single-day drop ever. Facebook parent Meta slumped 7.6%. Google’s /zigman2/quotes/205453964/composite GOOG +4.41% /zigman2/quotes/202490156/composite GOOGL +4.16% parent fell 5.1%.The S&P is down 18% from its Jan. 3 high, putting it on the brink of a bear market, or a 20% decline from the previous top.
Homebuilders slumped after the government reported April sales of newly built homes plunged 26.9% from a year earlier. KB Home /zigman2/quotes/206220859/composite KBH +3.10% fell 2.7%.
In Asia, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP -1.92% gained 1.2% to 3,107.46 while the Nikkei 225 in Tokyo shed 0.3% to 26,677.80. The Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -2.36% in Hong Kong gained 0.3% to 20,171.27.
The Kospi /zigman2/quotes/210598069/delayed KR:180721 -2.17% in Seoul rose 0.4% to 2,617.22 and Sydney’s S&P-ASX 200 added 0.4% to 7,155.20.
India’s Sensex gave up 0.2% to 53,926.64. New Zealand, Singapore and Jakarta declined while Bangkok advanced.
On Wednesday, the Federal Reserve is due to give insight into its decision-making by releasing minutes of its latest policy meeting.
In energy markets, benchmark U.S. crude rose $1.28 to $111.05 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 52 cents on Tuesday to $109.77. Brent crude, the price basis for international oil trading, advanced $1.16 to $111.85 per barrel in London. It rose 14 cents the previous session to $113.56.
The dollar gained to 127.05 yen from Tuesday’s 126.82 yen. The euro declined to $1.0669 from $1.0693.