BANGKOK — Stocks rose in Europe after a mixed session in Asia on Monday, where Hong Kong’s Hang Seng index fell 5% after neighboring Shenzhen was ordered to shut down to battle the worst outbreak of the virus. COVID-19 in China in two years.
Benchmarks rose in Frankfurt, Paris and Tokyo and US futures rose. Oil prices fell amid uncertainty related to the war in Ukraine.
The German DAX rose 2.8% to 14,003.93, while the CAC 40 in Paris gained 1.7% to 6,367.58. Britain’s FTSE 100 gained 0.3% to 7,178.48.
Futures for the Dow Jones Industrial Average rose 1%, signaling a positive start to the week’s trading. The S&P 500 future was up 0.7%.
The spread of virus outbreaks in China heightens concerns about supply chain disruptions from both the pandemic and war.
A vital manufacturing and technology center of 17.5 million people, Shenzhen is home to some of China’s most important companies, including telecommunications equipment maker Huawei Technologies Ltd., electric car brand BYD Auto, Ping An Insurance Co. and Tencent Holding, operator of the popular messaging service WeChat.
Foxconn, supplier to Apple and other electronics brands, said it suspended factory lines in Shenzhen due to the shutdown. In a notice to the Taiwan Stock Exchange, its listed company Hon Hai Precision Industry, the world’s largest contract manufacturing company, said it did not expect the suspension to have a major impact on its business. .
Hon Hai shares fell 1% on Monday.
The Hang Seng index fell 5.4% but regained lost ground to close 5% lower at 19,531.66. The stock market’s technology index fell 11%.
The Shanghai Composite Index slipped 2.6% to 3,223.53. The Shenzhen Small Market A-share index lost 2.9%.
Authorities restricted access to Shenzhen by suspending bus service and said everyone in the city would undergo three rounds of testing after 60 new cases were reported on Sunday. All businesses except those providing food, fuel and other necessities have been ordered to close or work from home.
The number of infections in mainland China is low compared to other countries and Hong Kong, which reported more than 32,000 new cases on Sunday. But Beijing’s “zero tolerance” strategy has led to lockdowns of entire cities to find and isolate every infected person.
In other Asian markets, Tokyo’s Nikkei 225 rose 0.6% to 25,307.85 and Australia’s S&P/ASX 200 gained 1.2% to 7,149.40. The South Korean Kospi fell 0.6% to 2,645.65.
The Ukrainian crisis and the central bank’s efforts to fight inflation remain the focus of most markets’ concerns.
Russian military forces continued their campaign to seize the Ukrainian capital as residents of other besieged towns held out hope that renewed diplomatic talks could pave the way for the evacuation of more civilians. or the delivery of emergency supplies.
A fourth round of talks was expected Monday between Ukrainian and Russian officials to discuss the supply of desperately needed food, water, medicine and other supplies to towns and villages under fire, among other issues, the Ukrainian presidential aide said. Mykhailo Podolyak.
On Friday, the S&P 500 fell 1.3% and the Dow Jones lost 0.7%. The Nasdaq Composite Index fell 2.2% and the Russell 2000 Small Company Index slipped 1.6%.
Global markets have been rocked by dramatic reversals as investors struggle to guess how Russia’s invasion of Ukraine will affect the prices of oil, wheat and other commodities produced in the region.
This increases the risk that the US economy will be grappling with a toxic combination of persistently high inflation and stagnant growth. The Federal Reserve is expected to raise interest rates at its meeting this week as it and other central banks move to stamp out the highest inflation in generations, while trying to avoid triggering a recession raising rates too high or too quickly.
U.S. stocks are around 10% below highs reached earlier this year, while crude oil prices are more than 40% higher for 2022.
Benchmark U.S. crude oil fell $6.51 to $102.82 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $3.31 a barrel on Friday to $109.33 a barrel.
Brent crude, the standard for international prices, fell $5.40 to $107.27 a barrel.
The US dollar fell from 117.35 yen to 118.02 Japanese yen. The Euro strengthened to $1.0952 from $1.0926.