Global stock markets experienced a decline on Monday following a drop in U.S. stocks, driven by concerns over inflation despite positive news on the job market. The future for the S&P 500 decreased by 0.9%, while the Dow Jones Industrial Average lost 0.4%.
Oil prices saw a significant surge, with U.S. benchmark crude oil rising by $1.48 to $78.06 per barrel and Brent crude increasing by $1.38 to $81.14 per barrel. This spike came after the Biden administration expanded sanctions against Russia's energy sector due to the ongoing conflict in Ukraine.
In early European trading, major indices such as Germany's DAX, France's CAC 40, and the UK's FTSE 100 all experienced declines. Meanwhile, markets in Japan were closed for a holiday.
China reported a 10.7% annual growth in exports in December, surpassing expectations, as factories rushed to fulfill orders ahead of potential tariffs threatened by the incoming U.S. administration. Despite this positive data, Asian stocks, including Hong Kong's Hang Seng and Shanghai Composite, faced losses.
The recent strength in hiring in the U.S. job market has raised concerns about inflation and its impact on the economy. This has led to speculation about the Federal Reserve's stance on interest rates, with the possibility of fewer rate cuts than previously anticipated.
Friday's jobs report, although seemingly robust, revealed weaknesses in the manufacturing sector. This, coupled with uncertainties surrounding trade policies under the new administration, has contributed to market volatility.
Overall, the global financial landscape remains uncertain, with investors closely monitoring economic indicators and policy developments for future market trends.
In currency markets, the U.S. dollar weakened against the Japanese yen and the euro, reflecting the broader market sentiment and economic dynamics at play.
