A roundup of trading on major world markets:
NEW YORK – Wall Street is lower, snapping a three-day rally, after a slump in Wal-Mart weighed on retail stocks and oil prices retreated.
Seven of the 10 major S&P sectors were lower, led by a 0.7 per cent drop in the financial sector, which led the recent rally.
Crude oil prices, whose performance have often dictated stock movements, dropped from session highs after a report showed US crude stocks rose last week.
The three-day rally, led by beaten-down sectors such as financials, materials and energy, boosted the benchmark S&P 500 5.3 per cent. But such has been the rout since the start of 2016 that the index is still down nearly 6.0 per cent this year.
“I think today, at least up until this point, is somewhat of a day of pause after a quite strong three-day rally due to mostly short covering,” said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.
At 0728 Friday AEDT, the Dow Jones industrial average was down 21.26 points, or 0.13 per cent, at 16,432.57.
The S&P 500 was down 5.30 points, or 0.28 per cent, at 1,921.52 and the Nasdaq Composite index was down 38.08 points, or 0.84 per cent, at 4,495.99.
LONDON – Britain’s top share index has ended a four-day winning streak, led lower by major mining stocks and hit by growing concern over the potential impact of Britain’s exit from the European Union.
The FTSE 100 index was down 1.0 per cent at 5,971.95 points at its close, in line with the broader European market.
Mining stocks, which had rebounded, were among the worst performers.
In a note sent to media on Thursday, major bond investor PIMCO, whose flagship fund alone manages $US90 billion ($A125.55 billion) in assets, said it saw a 40 per cent chance of “Brexit” at a referendum potentially later this year.
British Prime Minister David Cameron was holding “now or never” talks on Thursday to keep Britain in the European Union, with the bloc’s leaders suggesting there are only a few obstacles left to a new membership deal.
“Where the two sides act as if in an unpleasant divorce … the market response could be more long-lasting, with obvious pressure on the British pound and large UK listed companies with significant European activities,” PIMCO portfolio manager Mike Amey said in a note.
Many investors remain concerned about the impact on mining and energy shares of a slowdown in China, a leading consumer of commodities.
China’s consumer inflation quickened to a five-month high in January as food prices rose, but producer prices fell for a 47th straight month as declines in commodities and weak demand put deflationary pressure on the world’s second-largest economy .
“Investors must remember that oil prices are still painfully low, while concerns over the global economy remain elevated, which should weigh heavily on sentiment,” said FXTM research analyst Lukman Otunuga.
HONG KONG – Asian stocks rose across the board as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets.
Crude oil remained the main market driver. US crude was up 2.1 per cent at $US31.34 a barrel following a 7.0 per cent jump on Wednesday after Iran voiced support for a Russia-Saudi-led move to freeze production to deal with the market glut that had pushed prices to 12-year lows.
“While there has been some confusion as to whether ‘support’ equals action, oil traders are simply relieved that the world’s fourth-largest holder of oil reserves is willing to cooperate,” wrote Kathy Lien, managing director of FX strategy at BK Asset Management.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.8 per cent, pulling further away from a three-week low struck last week when a widespread chill in risk appetite amid concern about the euro zone banking sector depressed equities globally.
Japan’s Nikkei continued its recovery from last week’s 16-month low and gained 3.0 per cent, shrugging off the biggest drop in domestic exports since 2009.
Shanghai stocks rose 0.6 per cent, in muted reaction to data showing China’s January consumer inflation quickening to 1.8 per cent from the previous year.
WELLINGTON – The S&P/NZX 50 Index advanced 25.5 points, or 0.4 per cent, to 6,111.09.
