HONG KONG — World shares were mixed on Monday, with European markets barely moving as investors grew cautious over the potential for recession in the region.
U.S. futures rose and oil prices gained more than $1 a barrel after Saudi Arabia and Russia reiterated their commitment to maintaining oil supply cuts of more than 1 million barrels per day until the end of the year.
Meanwhile, the Israeli military announced late Sunday that it had encircled Gaza City and cut the besieged coastal strip in two almost a month into the deepening conflict.
In European trading, Germany’s DAX lost 7 points to 15,180.02 and the CAC 40 in Paris lost 0.1% to 7,041.12. Britain’s FTSE 100 edged less than 3 points lower, to 7,415.13. The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.1%.
Recent surveys of factory managers showed a deterioration in business activity, reinforcing concerns over slowing growth in Germany, France and other major economies.
In Asia, stocks surged Monday after Wall Street benchmarks were buoyed last week by hopes for early interest rate cuts.
South Korean stocks jumped 5.7%, to 2,502.37, after the government restored a ban on short-selling, aiming to prevent illegal use of the trading tactic that is often used by hedge funds and investors. Short-selling refers to selling borrowed shares in order to buy them back cheaper and profit from price declines.
Japan’s Nikkei 225 index gained 2.4% to 32,708.48. However, the country’s services activity in October expanded at its slowest pace this year, raising concerns about weakness in a key sector driving Japanese economic activity.
The Bank of Japan is gradually moving towards tightening its monetary policy as the central bank’s head stated on Monday that the country has made progress toward reaching its inflation target. But BOJ Gov. Kazuo Ueda said Monday that the change was not sufficient for raising its near zero interest rate stance.
The Hang Seng in Hong Kong added 1.7% to 17,966.59 and the Shanghai Composite index was up 0.9% at 3,058.41. Australia’s S&P/ASX 200 rose 0.3% to 6,997.40. India’s Sensex was 0.8% higher and Bangkok’s SET gained 0.3%.
On Friday, Wall Street closed out its best week in nearly a year. The S&P 500 climbed 0.9%, rising every day last week. The Dow industrials gained 0.7% and the Nasdaq composite jumped 1.4%.
Stock prices have surged on rising hopes the Federal Reserve is finally done with its market-crunching hikes to interest rates, meant to get inflation under control. A report Friday underscored that pressure is easing on inflation, showing employers hired fewer workers last month than economists expected.
In currency trading, the U.S. dollar rose to 149.56 Japanese yen from 149.37 yen. The euro cost $1.0741, up from $1.0728.
The S&P 500 climbed 0.9%, to 4,358.34. It rose every day last week. The Dow Jones Industrial Average gained 0.7% to 34,061.32, and the Nasdaq composite jumped 1.4% to 13,478.28.
In other trading Monday, benchmark U.S. crude rose $1.43 to $81.94 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.95 to $80.51 per barrel on Friday. Brent crude, the international standard, gained $1.38 to $86.27 per barrel.
In currency trading, the U.S. dollar rose to 149.58 Japanese yen from 149.37 yen. The euro cost $1.0750, up from $1.0728.
