Financial markets modestly lower before US trading opens

New York (AFP) – Wall Street Primark trading indicated a slightly lower open on Tuesday in the wake of…

New York (AFP) – Wall Street trade pointed to a slightly lower open on Tuesday, following the market’s worst trading month since the pandemic began.

As traders braced for another busy day with corporate earnings releases, the benchmark S&P 500 and Dow Jones Industrial Average futures were down 0.1% two hours before the opening bell. Among the companies that reported quarterly financial results on Tuesday were ExxonMobil, Alphabet, General Motors and Starbucks.

Shares in Europe gained while many markets in China and elsewhere in Asia were closed for the Lunar New Year holidays.

France’s CAC 40 and Germany’s DAX both jumped 1.1% in early trading, while Britain’s FTSE 100 is up 0.9%.

Japan’s Nikkei 225 is up 0.3% while Australia’s S&P/ASX 200 is up 0.5%.

Wall Street ended a turbulent January wracked with fears that raising interest rates would make everything in the markets more difficult. Stocks closed higher on Monday but still posted their worst monthly loss since the pandemic broke out nearly two years ago.

The S&P 500 fell 5.3% in January, its worst month since dropping 12.5% ​​in March 2020, when it slumped after the pandemic suddenly shut down the global economy. The Dow Jones fell 3.3% in January while the Nasdaq fell 9%.

The Federal Reserve is about to start withdrawing the massive stimulus it has pumped into the economy and markets since the pandemic began in 2020. Extremely low rates and other stimulus helped markets recover from the initial shock of the coronavirus pandemic, then underpinned stunning gains.

Investors expect the US Federal Reserve to start raising interest rates in March to fight inflation. But markets have moved on amid uncertainty about how aggressively and how quickly the Fed will act.

In energy trading, US crude lost 60 cents to $87.55 a barrel in electronic trading on the New York Mercantile Exchange. It rose $1.33 to $88.15 a barrel on Monday. Brent crude, the international benchmark, fell to $88.52 a barrel.

In currency trading, the US dollar fell to 114.63 Japanese yen from 115.13 yen. The euro traded at $1.1266, up from $1.1236.

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