# Wall Street set to open higher, oil prices extend losses
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-10
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: European Stock Indexes Rise Despite Fear of Economic Growth
Meta Description: European stock indexes bounce back after recent losses, with slight recovery seen in markets as various factors impact oil prices and market sentiment.
URL: https://financedigest.com/wall-street-set-to-open-higher-oil-prices-extend-losseshtml

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By Elizabeth Howcroft

LONDON (Reuters) -European stock indexes rose on Tuesday as risk appetite showed some signs of picking up again after Monday’s sharp falls, but fears over economic growth still weighed on markets, pushing oil prices lower.

Asian equities slipped to their lowest in nearly two years overnight, before trimming losses.

A tumble in [stock markets so far this month is attributed to a combination of monetary tightening by major central banks and a slowdown in economic](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") growth.

Last week central banks in the United States, [Britain and Australia raised interest rates and investors girded for more tightening as policymakers fought soaring](https://www.financedigest.com/britain-delays-major-rail-project-hs2-as-costs-soar-again.html "Britain delays major rail project HS2 as costs soar again") inflation.

Although these drivers persisted on Tuesday, [markets saw a slight recovery](https://www.financedigest.com/vapour-recovery-units-market-is-expected-to-register-a-decent-cagr-of-more-than-5-during-the-forecast-period-of-2019-2029.html "Vapour Recovery Units Market is expected to register a decent CAGR of more than 5% during the forecast period of 2019-2029"), which U.S. stock futures suggested would continue through to [Wall Street’s](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") open.

At 1035 GMT, the MSCI world equity index, which tracks [shares in 50 countries](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop"), was up 0.1% on the day, having touched its lowest since late 2020 earlier in the session.

Europe’s STOXX 600 was up 1.2%, but the [gain was still small relative to its 6.3% loss](https://www.financedigest.com/ftse-100-up-as-astrazeneca-gains-offset-commodity-losses.html "FTSE 100 up as AstraZeneca gains offset commodity losses") so far in May.

S&P 500 futures were up around 1% while Nasdaq futures rose 1.5%.

Peter McCallum, [interest rates](https://www.financedigest.com/interest-rate-and-recession-fears-knock-stocks-and-oil.html "Interest rate and recession fears knock stocks and oil") strategist at Mizuho, said the bounceback was a natural correction after the previous session’s falls. Traders could also be positioning themselves to take advantage of any [boost to sentiment](https://www.financedigest.com/dollar-soft-as-china-reopening-hopes-boost-risk-sentiment.html "Dollar soft as China reopening hopes boost risk sentiment") coming from Wednesday’s key U.S. [consumer price](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices") index (CPI) data, he said.

If headline inflation comes in and shows that month-on-month CPI is heading in the right [direction then that makes the case for potentially a more dovish Fed and hikes being priced](https://www.financedigest.com/immediate-lift-of-oxford-property-prices-to-result-from-new-direct-high-speed-rail-connection-with-london.html "“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London") out,” McCallum said.

The [dollar index was little changed](https://www.financedigest.com/stocks-dollar-little-changed-as-inflation-data-sends-mixed-signals.html "Stocks, dollar little changed as inflation data sends mixed signals"), having reached a 20-year high on Monday. Meanwhile, the Australian dollar fell to its lowest in nearly two years overnight, hurt by fears of slowing economic growth, but [recovered during European trading](https://www.financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-push.html "EU recovers appetite for trade in green industry push") hours.

China’s export growth slowed to its weakest in almost two years, data showed, as the central [bank pledged to step up support](https://www.financedigest.com/comserve-to-support-allied-irish-bank-nationwide.html "COMSERVE TO SUPPORT ALLIED IRISH BANK NATIONWIDE") for the slowing economy.

[Oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") fell for a second day, hurt by a combination of the stronger dollar, growing recession fears, and COVID-19 lockdowns in China.

Given concerns that Russia could [cut off gas flows to Europe](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel"), German officials are preparing an emergency package that could include taking control of critical firms.

European Union members could reach a deal this week on the EU Commission’s proposal to ban all [oil imports from Russia](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors"), France’s European affairs minister said.

European government [bond yields](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule") fell, with the German 10-year yield down 4 basis points at 1.054%, just below an almost 8-year high.

The U.S. 10-year yield was at 3.0223%, having [eased since it hit](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs") 3.203% on Monday – a level not seen since 2018.

Elsewhere, Bitcoin was up 4.4%, recovering some of its 11.6% Monday plunge, which was its [biggest daily fall since](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") May 2021. At around $31,403, the cryptocurrency has lost more than half its value [since it hit](https://www.financedigest.com/uk-unemployment-hits-lowest-since-1974-but-jobs-boom-is-fading.html "UK unemployment hits lowest since 1974 but jobs boom is fading") an all-time high of $69,000 in November.

(Reporting by Elizabeth Howcroft; Editing by Bradley Perrett and Raissa Kasolowsky)


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