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World stocks were mixed Tuesday ahead of the US midterm elections, with trading likely to stay bumpy in a week that brings new inflation data and other events that could shake markets, reports AP.
The future for the S&P 500 lost 0.3 per cent while that for the Dow Jones Industrial Average was 0.2 per cent lower. On Monday, the benchmark S&P 500 rose 1 per cent and the Dow industrials 1.3 per cent.
The Nasdaq composite added 0.9 per cent.
Germany’s DAX added 0.1 per cent to 15,543.08, while the CAC40 in Paris slipped 0.4 per cent to 6,390.14.
In London, the FTSE 100 fell 0.4 per cent to 7,274.37.
The week is full of potentially market-moving events, including US inflation data and the election, which could leave the US government split between Democrats and Republicans.
For Tuesday, at least, “Look for markets to trade political headline spin rather than substance,” Stephen Innes of SPI Asset Management said in a commentary.
In Asia on Tuesday, Tokyo’s Nikkei 225 gained 1.3 per cent to 27,872.11 on strong earnings reports. The Kospi in Seoul advanced 1.2 per cent to 2,399.04 and Australia’s S&P/AXS 200 gained 0.4 per cent to 6,958.90.
Hong Kong’s Hang Seng sank 0.2 per cent to 16,557.31, while the Shanghai Composite index shed 0.4 per cent to 3,064.49.
Thailand’s SET gained 0.5 per cent. India’s markets were closed for a holiday.
Economists expect a US government report on Thursday to show the consumer price index rose 8 per cent in October from a year earlier, slightly lower than September’s 8.2 per cent inflation rate.
A fourth straight month of moderating inflation from June’s peak of 9.1 per cent could give the Federal Reserve leeway to loosen up a bit. The Fed has said it may soon dial back its rate hikes to half a percentage point, after it pushed through four straight mega increases of three-quarters of a point.
Earnings reports are also causing share prices to swing.
The reporting season for summertime profits is roughly 85 per cent done, and S&P 500 companies are on track to deliver growth of a little more than 2 per cent. Analysts are forecasting a drop in S&P 500 profits for the final three months of the year, of nearly 1.5 per cent.
Bd-pratidin English/Golam Rosul
