EUROPEAN and US stock markets advanced yesterday despite lingering concerns about further aggressive central bank actions as natural gas prices jumped on news of a strike in Australia. 

The gains came at the end of a lacklustre week for equities in the wake of persistently high Treasury bond yields. US economic data has generally outperformed expectations, raising hopes a recession can be avoided, but adding to worries of more Federal Reserve interest rate increases.

“It seems that a lot of people are just waiting to see how quickly does this economy cool,” said Oanda’s Edward Moya, who described the current stretch as “a little bit of a choppy period.”

The S&P 500 finished at 4,457.49, up 0.1% for the day but down 1.3% for the week.

Among individual companies, Apple advanced 0.4%, a partial recovery after two straight losing sessions on worries over reports of a China ban on iPhones at government offices.

Asian markets slid yesterday, while European stocks pulled into positive territory during afternoon trading after a sluggish morning and closed higher.

“Investors are currently caught between two distinct pincers: concerns over slowing economic numbers, particularly in Europe and China, against a backdrop of much stickier inflation caused by rising energy prices,” said Michael Hewson at CMC Markets.

Strong US readings – including on the services sector and jobs – and a surge in oil prices have sparked fears the Fed will announce one more hike before the end of the year or keep borrowing costs elevated for an extended period.

Rolling strikes

Elsewhere yesterdsy, European natural gas prices rallied as much as 12.6% as workers launched rolling strikes at Chevron’s gas plants in Western Australia, threatening a major production pipeline that pumps out 5% of global liquefied natural gas (LNG) stocks.

European nations have been importing considerably more LNG to replace reduced Russian supplies that were delivered by pipeline before the war in Ukraine.

The Offshore Alliance, which represents Chevron’s highly unionised workforce, said yesterday morning the global energy giant would “finally be facing their day of reckoning”. 

“It’s game on, Chevron,” it said in a statement, adding that facilities would be “shut down” if they lacked “competent personnel”. 

Strike action would slowly escalate in coming weeks, covering 500 staff and including “rolling stoppages, bans and limitations”, according to union officials. 

Chevron said it would “continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities”. 

“Unfortunately, following numerous meetings and conciliation sessions… we remain apart on key terms,” a spokesman said in a statement sent minutes before the strike began. 

“We have been advised that industrial action will commence today.”

Key figures around 2100 GMT

New York - Dow: UP 0.2% at 34,576.59 (close)

New York - S&P 500: UP 0.1% at 4,457.49 (close)

New York - Nasdaq: UP 0.1% at 13,761.53 (close)

London - FTSE 100: UP 0.5% at 7,478.19 (close)

Frankfurt - DAX: UP 0.1% at 15,740.30 (close)

Paris - CAC 40: UP 0.6% at 7,240.77 (close)

EURO STOXX 50: UP 0.4% at 4,237.19 (close)

Tokyo - Nikkei 225: DOWN 1.2% at 32,606.84 (close)

Shanghai - Composite: DOWN 0.2% at 3,116.72 (close)

Hong Kong - Hang Seng Index: Closed for a storm

Euro/dollar: UP at US$1.0702 from US$1.0696 on Thursday

Pound/dollar: DOWN at US$1.2469 from US$1.2472

Dollar/yen: UP at  ¥147.81 from  ¥147.30 

Euro/pound: UP at 85.83 from 85.76 pence

Brent North Sea crude: UP 0.8% at US$90.65 per barrel

West Texas Intermediate: UP 0.7% at US$87.51 per barrel – AFP, September 9, 2023.