London
9 °C
Manchester
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Dublin
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Washington
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Houston Texas
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Stocks tread water as investors track China, Russia news / Photo: Valery SHARIFULIN - SPUTNIK/AFP
Stocks tread water as investors track China, Russia news
European and US stocks held relatively steady on Tuesday as China's growth reassurances helped to offset political turmoil in Russia.
As investor anxiety over a global recession eased a little, haven currencies the dollar and yen pulled back while oil prices retreated.
"An encouraging speech from China's Premier Li Qiang has lifted sentiment," said Victoria Scholar, head of investment at Interactive Investor.
Li said China was on course to achieve its five-percent target for economic growth in 2023 set by Beijing earlier this year.
The world's second-biggest economy is grappling with a slow recovery after emerging from Covid lockdowns.
In a fresh sign of optimism for China-US relations, reports said Treasury Secretary Janet Yellen planned to meet her counterpart in Beijing next month.
The talks would follow Secretary of State Antony Blinken's trip to the country, where he spoke to his opposite number and President Xi Jinping.
A summit between Xi and President Joe Biden has also been flagged.
In Russia on Tuesday, President Vladimir Putin told gathered troops at the Kremlin that they had prevented a civil war after a revolt by Wagner mercenaries and held a minute of silence for pilots killed in clashes during the insurrection.
The ruble stabilised after sinking to a 14-month low against the dollar, or levels not seen since the early months of Putin's invasion of Ukraine.
The euro also got a boost from European Central Bank president Christine Lagarde, who said at an annual central bank forum in Portugal that it was "unlikely" policymakers could state soon when interest rates had peaked -- and pledged yet another hike in July for the eurozone.
US Federal Reserve Chairman Jerome Powell is scheduled to speak at the forum on Wednesday and will be keenly followed by investors looking for additional indications about the Fed risking hikes further in the coming months.
Hong Kong and Shanghai stocks rose after Li's speech boosted sentiment.
European stocks were marginally lower in afternoon trading.
Wall Street opened with modest gains, with the Dow edging 0.1 percent higher.
Briefing.com analyst Patrick O'Hare said trading was likely to be influenced by the second quarter ending of Friday.
"That means the stock market is apt to be influenced by rebalancing dynamics, and it appeared yesterday as if the stock market encountered such activity," he said.
Asset managers may need to adjust portfolios as the quarter ends, sometimes driving trade in unexpected directions.
- Key figures around 1330 GMT -
New York - Dow: UP 0.1 percent at 33,762.84 points
London - FTSE 100: DOWN less than 0.1 percent at 7,448.55
Frankfurt - DAX: DOWN 0.2 percent at 15,783.94
Paris - CAC 40: DOWN 0.1 percent at 7,175.88
EURO STOXX 50: FLAT at 4,279.74
Tokyo - Nikkei 225: DOWN 0.5 percent at 32,538.33 (close)
Hong Kong - Hang Seng Index: UP 1.9 percent at 19,148.13 (close)
Shanghai - Composite: UP 1.2 percent at 3,198.44 (close)
Euro/dollar: UP at $1.0970 from $1.0910 on Monday
Pound/dollar: UP at $1.2744 from $1.2714
Dollar/yen: DOWN at 143.33 from 143.50 yen
Euro/pound: UP at 86.10 pence from 85.78 pence
West Texas Intermediate: DOWN 0.5 percent at $69.06 per barrel
Brent North Sea crude: DOWN 0.6 percent at $73.76 per barrel
burs-rl/lth
(L.Kaufmann--BBZ)
