Stocks waver as inflation concerns offset positive earnings / Photo: Richard A. Brooks - AFP
Stocks waver as inflation concerns offset positive earnings
Major stock markets fluctuated Wednesday as investors tracked soaring inflation and positive earnings results.
In a sign of the uphill struggle in the battle against soaring prices, UK inflation jumped back above 10 percent last month.
London's FTSE 100 shares index steadied and the pound fell following the data -- and as Britain's under-fire Prime Minister Liz Truss faced a grilling in parliament.
"The markets are struggling to extend this week's rally that came amid the UK's decision to abandon nearly all of its tax cut plans, as the original proposal was met with increased volatility in the current and bond markets," Charles Schwab analysts said.
Foreign exchange traders were keeping tabs also on whether the dollar would reach 150 yen, which would be a fresh high for 32 years.
Japan's currency is being hit hard as the country's central bank holds off from hiking interest rates, in sharp contrast to its peers the world over which are aggressively hiking borrowing costs to try and cool decades-high inflation.
The Paris and Frankfurt stock markets were up in afternoon deals, but Wall Street opened flat at 30,523.80 points.
"Fortunately, some strength is also being seen in the stocks of several widely-held companies that reported earnings," said Briefing.com analyst Patrick O'Hare.
Traders were given an extra boost by news that Netflix gained more than two million subscribers in July-September.
In Europe, Nestle's sales surged in the first nine months of the year as the maker of Nespresso capsules, Purina pet food and Haagen-Dazs ice cream raised its prices in response to soaring inflation.
On commodity markets, crude oil prices rose on renewed supply worries.
They had slumped Tuesday on bets that US President Joe Biden would order the release of more barrels from the country's emergency reserves in order to keep fuel prices subdued heading into mid-term elections.
- Key figures around 1330 GMT -
New York - Dow: FLAT at 30,523.80 points
London - FTSE 100: FLAT at 6,938.96
Frankfurt - DAX: UP 0.1 percent at 12,772.06
Paris - CAC 40: UP 0.2 percent at 6,077.86
EURO STOXX 50: UP 0.4 percent at 3,479.02
Tokyo - Nikkei 225: UP 0.4 percent at 27,257.38 (close)
Hong Kong - Hang Seng Index: DOWN 2.4 percent at 16,511.28 (close)
Shanghai - Composite: DOWN 1.2 percent at 3,044.38 (close)
Pound/dollar: DOWN at $1.1260 from $1.1332 on Tuesday
Dollar/yen: UP at 149.76 yen from 149.21 yen
Euro/dollar: DOWN at $0.9785 from $0.9862
Euro/pound: DOWN at 86.90 pence from 87.01 pence
Brent North Sea crude: UP 0.7 percent at $90.66 per barrel
West Texas Intermediate: UP 0.9 percent at $83.56 per barrel
burs/lcm/lth
G.Murray--MP
