World shares sink, oil slips as investors brace for Israeli invasion of Gaza
Bangkok(AP): World shares fell and oil prices edged lower as investors braced Monday for an expected invasion by Israel in the Gaza Strip.
The futures for the S&P 500 and the Dow industrials edged 0.1% higher. Germany's DAX shed 0.5% to 15,104.87 and the CAC 40 in Paris declined 0.5%, to 6,965.51. Britain's FTSE 100 was down 0.1% at 7,589.92.
Israeli forces, supported by a growing deployment of US warships in the region and the call-up of some 360,000 reservists, have positioned themselves along Gaza's border and drilled for what Israel said would be a broad campaign to dismantle the Hamas.
"Who can blame markets for being jittery," RaboResearch Global Economics and Markets said in a commentary. "The world now holds its breath as Israel prepares for a full-scale ground invasion of Gaza, with only unseasonal torrential rain delaying the seemingly inevitable."
The conflict has jolted oil markets, adding to uncertainties already hanging over the global economic outlook. The Gaza region is not a major producer of oil, but the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum, with broad ramifications for many industries.
On Friday, the price of a barrel of benchmark US crude oil jumped 4.78 to settle at 87.69. Brent crude, the international standard, climbed 4.89 to 90.89 per barrel. Early Monday, US crude oil was down 17 cents at 87.52 per barrel. Brent gave up 28 cents to 90.61 a barrel.
Worries about the state of the US economy have also undermined recent optimism over the possibility that the Federal Reserve might halt its interest rate hikes aimed at quashing inflation.
Persisting inflationary pressures along with higher oil prices are casting doubts on that, and threatening the "'remarkable resilience' of the US economy, which buoyed stock markets until a few months ago," Stephen Innes of SPI Asset Management said in a report.
In Asian trading Monday, Tokyo's Nikkei 225 sank 2% to 31,659.03 and the Hang Seng in Hong Kong lost 1% to 17,640.36. South Korea's Kospi declined 0.8% to 2,436.24.
The Shanghai Composite index was 0.5% lower, at 3,073.81, while Bangkok's SET skidded 2.1%. Australia's S&P/ASX 200 was down 0.4% at 7,026.50.
On Friday, US stocks mostly fell as they were buffeted by competing waves of optimism and fear.
The S&P 500 slipped 0.5% to 4,327.78 and the Nasdaq composite fell 1.2% to 13,407.23. The Dow industrials edged up 0.1% to 33,670.29.
Worries about the war pulled Treasury yields lower, which often happens when investors head for safer investments during times of stress. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Thursday.
Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year.
Several US banking giants said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.
JPMorgan Chase rose 1.5% after its profit for the third quarter climbed 35% from a year earlier. It benefited from a rise in interest rates, but its CEO Jamie Dimon also warned that "this may be the most dangerous time the world has seen in decades".
Wells Fargo rose 3.1% after it likewise topped analysts' expectations for profit during the summer quarter.
UnitedHealth Group beat Wall Street's profit expectations, and its stock climbed 2.6%.
Dollar General jumped to the biggest gain in the S&P 500, up 9.2%, after it said Todd Vasos will be returning as CEO.
In currency dealings early Monday, the US dollar was unchanged at 149.55 yen. The euro rose to 1.0535 from 1.0515.
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Tribals, Scheduled Castes preserved India's identity and soul despite foreign invasions: Bhagwat
Mumbai (PTI): RSS chief Mohan Bhagwat has said that despite foreign invasions and hardships, tribal communities and Scheduled Castes preserved the country's identity and soul, stressing the need to integrate them into the mainstream development process.
He was speaking on Saturday at the Karmayogi awards ceremony in Mumbai, where Union Road Transport and Highways Minister Nitin Gadkari was also present.
"Human life is defined by giving back to the world, as we are all part of one great family. A person works and spends for the betterment of society, not as a favour, but out of duty. In serving others, we foster our own development. By helping others to thrive, we elevate ourselves and grow as human beings. This principle is the core value of this Indian land, commonly known as a Hindu society," Bhagwat said.
"This is the society's enduring ethos, which has survived for thousands of years. For various reasons, partly because of our indifference and partly because of foreign invasion, those who preserved this ethos paid a heavy price," he said.
The foreign invaders found that this ethos, this value system of the society is its soul and the key to keeping it alive. So they ensured that those who tried to preserve this soul would be uprooted and face extreme hardships, the Rashtriya Swayamsevak Sangh (RSS) chief noted.
But despite foreign invasions and hardships, tribal communities and Scheduled Castes preserved the country's identity and its soul, he said.
"Despite such adversities, the country's core identity remained intact among tribal communities and those belonging to SC and ST groups," he said, emphasising the need to integrate them into the mainstream development process while ensuring they receive equal access to services and facilities.
Referring to global developments, Bhagwat said the present world is "stumbling forward" and struggling to maintain balance, and asserted that India could emerge as a stabilising force.
The country must not only safeguard its own interests but also extend support to the world, he said.
"The world should get to see that the country is not only solving its own misery and sorrow but also helping the world to address similar issues," he said.
The RSS chief stressed that service to society is not a favour but a duty that contributes to one's own development.
Helping others grow also elevates individuals and strengthens the collective fabric of society, he said.
The so-called educated and developed sections have, over time, distanced themselves from these communities, Bhagwat pointed out, and called for the need to bridge this gap.
The identities preserved by these communities represent the true identity of Indian society, he said and underlined that without identity, existence itself is at risk.
