Global Economy | European stocks open on a high after new UK FM scrapping of Liz Truss economic policy

Oil prices edged lower on Tuesday on fears of an economic slowdown and lower fuel demand from China as it persists with its stringent zero-COVID policy.

Brent crude futures fell 41 cents, or 0.45 per cent, to $91.21 a barrel by 0948 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 41 cents, or 0.48 per cent, to $85.05.

WTI had risen earlier by more than $1 a barrel on a weaker dollar, which makes oil cheaper for buyers holding other currencies.

Tuesday saw European stocks opening higher. 

Analysts have attributed this to the turnaround in United Kingdom's fiscal policy, under the newly appointed finance minister Jeremy Hunt and his move to scrap PM Liz Truss's economic plan.

Hong Kong stocks ended today with healthy gains as global markets rallied. 

The Hang Seng Index jumped 1.82 per cent, or 301.68 points, to 16,914.58.

The Shanghai Composite Index dipped 0.13 per cent, or 3.98 points, to 3,080.96, while the Shenzhen Composite Index on China's second exchange added 0.36 per cent, or 7.27 points, to 2,005.08.

Amid fears of recession, trade unions started a strike across the nation on Tuesday. 

They are asking for higher salaries amid decades-high inflation. 

The stikes may emerge as one of the stiffest challenges for President Emmanuel Macron since his reelection in May. 

The strike will primarily affect public sectors such as schools and transportation. 

Oil prices rose on Tuesday (October 18), due to weaker US dollars and supply woes. 

Brent crude futures rose 0.8 per cent to $92.36 per barrel. 

The indian rupee stands unchanged at 82.35 per dollar, as the RBI continues its support for the local currency. 

Indian shares rise to three-week highs on Tuesday (October 18). The Indian central bank said that the inflation appears to ease. 

The NSE nifty 50 index rose to 1.02 per cent to 17,488.25. 
 

Gold prices rose more than 1 per cent on Monday after declines in the previous two sessions, as the US dollar and Treasury yields faltered, although risks from looming Federal Reserve interest rate hikes persisted.

Read for more:  Gold up about 1 per cent as US dollar, yields pull back

Demanding higher salaries, French trade union has called for a nationwide strike on Tuesday amid decades-high inflation. President Emmanuel Macron faces one of the stiffest challenges since his reelection in May.

The strike will primarily affect publics sectors such as schools and transportation. A weeks-long industrial action has already disrupted France's major refineries and put petrol stations' supply in disarray.

China's biggest electric car maker BYD Co's third-quarter net profit likely more than quadrupled following robust sales and a better product mix. The company's shares surged after this news.

It estimated that net profit for the July-September quarter came in between 5.5 billion yuan to 5.9 billion yuan ($765 million-$820 million), or an increase of 333 per cent to 365.1 per cent from the same period a year earlier.

Oil prices steadied in early Asian trade on Tuesday as a weaker US dollar lent support to it. Rising shale production and fears that high inflation could lead the world economy into a recession limited gains.

Brent crude futures rose nive cents or 0.1 per cent to $91.71 per barrel by 1:20 GMT, while US West Texas Intermediate (WTI) crude futures gained six cents or 0.1 per cent to $85.52 per barrel.

The Japanese yen hit its lowest value against the US dollar in 32 years on Tuesday (October 18). The US currency rose to 149.10 yen.

Japan spent 2.8 trillion yen ($18.81 billion) in dollar-selling, yen-buying intervention last month when authorities intervened to prop up the yen for the first time since 1998.

A senior official at India's Ministry of Consumer Affairs, Food and Public Distribution said on Monday that the country has sufficient stocks of rice and wheat and the government will sell wheat in the open market if needed to control prices.

"We've enough stocks of rice and wheat and there's nothing to worry," Sudhanshu Pandey told a press conference.

"We'll intervene if needed," he said, replying to a query on whether the government would sell food stocks in the open market to keep a lid on local prices.

Intel Corp is reportedly gearing up for a valuation that is significantly lower than previously expected for the initial public offering of its self-driving car unit Mobileye, the Wall Street Journal reported on Monday. 

Mobileye was originally expected to land a roughly $50 billion valuation, but is now set to target one of under $20 billion and sell a smaller number of shares than originally planned, according to the report.

The dollar witnessed a fall on Monday while sterling jumped after Britain's new finance minister ditched most of the government's "mini-budget". 

Jeremy Hunt, the new finance minister, reversed portions of the 45-billion pound "mini-budget" that sparked market turmoil in which the pound hit record lows and the Bank of England was forced to intervene.

Oil prices held steady on Monday in choppy trading. Fears that high inflation and energy costs could pull the global economy into recession offset China's continuation of loose monetary policy.

Brent crude futures were down one cents, or 0.01 per cent, to $91.62 a barrel, recovering from a 6.4 per cent fall last week. US West Texas Intermediate crude was down 15 cents, or 0.2 per cent, at $85.46 after a 7.6 per cent decline last week.