Global stocks fluctuated as oil prices rose

NEW YORK CITY: Global equities finished mixed last Friday at the end of a tortuous session marked by light pre-Christmas trading volumes as oil prices surged on a Russian threat to curtail production.

After opening in the red, US indices rallied to finish moderately higher on mixed economic data, as the US Congress finally passed a $1.7 trillion package to keep the government afloat.

“Ultimately, a late-afternoon rise saw major indices close to their best levels of the session, albeit with small gains, to close out the first day of the so-called Santa Claus rally period,” said Briefing. .com.

The broad S&P 500 finished up 0.6 percent for the day, but with a narrow loss for the week.

Orders for high-quality US-manufactured goods fell more than expected in November on the back of a slump in new aircraft orders.

Meanwhile, the personal consumption price index, closely tracked by the Federal Reserve (Fed) as a gauge of inflation, rose 0.1 percent from October to November and 5.5 percent from November last year.

The annual figure was below the October level, but still significantly above policymakers’ inflation target of 2 percent.

Earlier, London made small gains on a shortened trading day, while Frankfurt added 0.2 percent and Paris fell by the same amount.

Major equity markets in Asia fell after Wall Street ended sharply in the red last Thursday.

Tokyo’s main stock index lost 1 percent as Japan’s inflation hit a 41-year high, bolstering expectations that the East Asian country’s central bank would raise interest rates next year.

The yen rose this week after the Bank of Japan adjusted monetary policy in a surprise move that signaled future rate hikes.

Meanwhile, hopes that China’s economic growth would accelerate as it reverses its “zero Covid” strategy were dashed by a surge in coronavirus cases that has kept people at home, and battered travel and economic activity.

“The spike in Covid-19 infections following the easing of mobility restrictions will continue to limit economic activity in the December to January timeframe,” said Guan Yi Low of M&G Investments.

Oil prices rose more than 2 percent on supply problems after a senior official last Friday warned Russia could cut up to 7 percent of its oil production next year.

Moscow is trying to honor a vow not to sell crude oil to countries that have an international price cap because of the invasion of Ukraine.

Shares of Chevron gained 3.1 percent, while Apache gained 5.7 percent and Halliburton gained 4.1 percent.