World Shares Inch Up As Dow Sinks Into Bear Market
World shares were mostly higher on Tuesday as buying kicked in after heavy selling on Wall Street put the Dow Jones Industrial Average into what’s known as a bear market. US futures and oil prices gained, Elaine Kurtenbach reported for the Associated Press (AP) on Sept. 27, 2022.
Photo Insert: A drop of 20% or more from a recent peak is what Wall Street calls a bear market.
In early European trading, Germany’s DAX climbed 0.7% to 12,315.01 while the CAC 40 in Paris rose 0.8% to 5,812.41. In London, the FTSE 100 edged 0.1% higher to 7,029.46. The futures for the S&P 500 jumped 1.3%, while the contract for the Dow industrials was 1% higher.
In Asian trading, Tokyo’s Nikkei 225 index picked up 0.5% to 26,571.87 and the S&P/ASX 200 added 0.4% to 6,496.20. In Seoul, the Kospi rebounded from earlier losses, edging 0.1% higher to 2,223.86. Hong Kong’s Hang Seng added just 5 points, to 17,860.31.
The Shanghai Composite index jumped 1.4% to 3,093.86 after China’s central bank on Tuesday moved to maintain cash flow for banks by buying securities from commercial lenders, with an agreement to sell them back in the future.
The official Xinhua News Agency said the People’s Bank of China carried out 175 billion yuan (about $24.7 billion) in reverse repos “to maintain liquidity in the banking system.”
The Dow is now 20.5% below its all-time high set on Jan. 4. A drop of 20% or more from a recent peak is what Wall Street calls a bear market. The S&P 500 fell 1% to 3,655.04. The Nasdaq dropped 0.6% to 10,802.92, while the Russell 2000 dropped 1.4% to close at 1,655.88.
In other trading on Tuesday, US benchmark crude added $1.26 to $77.97 per barrel in electronic trading on the New York Mercantile Exchange. It sank $2.03 to $76.71 on Monday. Brent crude, used for pricing international oils, rose $1.35 to $84.21 per barrel.