Global Stock Market Reports Downward trend amid Oil Price slump

Asian share markets slipped on Thursday on widespread investor concern over high inflation and the threat of recession, while oil prices slumped following a report of reassurances from Saudi Arabia over production.

In Europe, shares were set to nudge higher at the open after regional indexes notched two days in the red. Euro Stoxx 50 futures were up 0.16% and German DAX futures added less than 0.1%, while FTSE futures were flat.

Global benchmark Brent crude was down about 2% at $114.02 per barrel ahead of a meeting of oil producing countries later in the day, which is expected to pave the way for output increases. OIL/

U.S. crude also dipped around 2% to $112.97.

The fall in oil prices gathered pace after reports said Saudi Arabia may be prepared to raise oil production in the event of a sharp drop in Russia’s output.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 1.4% in afternoon trade.

China’s blue-chip index (.CSI300) fell 0.1%, Australian shares (.AXJO) lost 1%, and Seoul’s KOSPI (.KS11) slid 1.1%.

In Tokyo, the Nikkei (.N225) slipped 0.25%.

Worries over Inflation

Investors’ worries over inflation and recession have festered amid uncertainty caused by the U.S. Federal Reserve’s pace of interest rate hikes, the impact of the Russia-Ukraine war on food and commodity prices, and supply chain constraints exacerbated by strict COVID-19 curbs in China.

Meanwhile, a new survey of South Korean factory activity on Thursday showed slowing growth in May as import and export orders shrank, the latest indicator of global manufacturing woes.

While the stronger U.S. manufacturing data did little to lift U.S. shares overnight, it supported the dollar as yields pushed to two-week highs.

In Asian trade, the global dollar index was steady at 102.56, while the yen firmed slightly to 130.04 per dollar as U.S. yields inched lower. The euro edged up 0.05% to $1.0651.

Benchmark U.S. 10-year Treasury notes last yielded 2.9076%, down from a U.S. close of 2.931% on Wednesday, while the two-year yield slipped to 2.6540% from a close of 2.664%.

The lower yields kept gold prices steady after hitting a two-week low on Wednesday. Spot gold was barely higher at $1,846.46 per ounce.

Reuters/Hauwa Abu