Global Stocks Mixed Thursday 08/22 06:06
Global stock markets were mixed Thursday following Wall Street's rebound as
investors looked ahead to a speech by the U.S. Federal Reserve chairman for
clues about possible interest rate cuts.
BEIJING (AP) -- Global stock markets were mixed Thursday following Wall
Street's rebound as investors looked ahead to a speech by the U.S. Federal
Reserve chairman for clues about possible interest rate cuts.
Investor reaction was muted following Wednesday's release of notes from the
latest Fed meeting showing conflicting opinions about rates.
Benchmarks in London and Frankfurt declined in early trading. Hong Kong
closed down while Shanghai and Tokyo advanced.
Investors are looking to Chairman Jerome Powell's speech Friday for guidance
about whether the Fed might cut rates at its next meeting in September. The Fed
cut its key policy rate on July 31 for the first time in more than a decade,
citing President Donald Trump's tariff battle with Beijing and other possible
threats to economic growth.
Markets have a "high degree of policy uncertainty" ahead of Powell's speech
and U.S.-China trade talks in September, said Stephen Innes of Oanda in a
Mixed views rates among Fed leaders are "well documented," but the notes are
a "reminder of how challenging it could be for Chair Powell to meet the
market's exceedingly dovish expectations," said Innes.
In early trading, London FTSE 100 lost 0.4% to 7173.92 and Frankfurt's DAX
shed 3 points to 11799.69. France's CAC-40 dropped 0.2% to 5424.47.
On Wall Street, futures for the S&P 500 index and the Dow Jones Average both
In Asia, the Shanghai Composite Index edged up 0.1% to 2,883.44 and Hong
Kong's Hang Seng fell 0.9% to 26,046.47.
Tokyo's Nikkei 225 was 0.1% higher at 20,612.17. Sydney's S&P-ASX 200 rose
0.3% to 6,501.08 and India's Sensex shed 0.5% to 36868.14.
Seoul's Kospi declined 0.7% to 1,951.01. New Zealand and Taiwan were up
while Southeast Asian markets declined.
On Wednesday, the S&P 500 rose 0.8%. The Dow and the Nasdaq composite added
Traders see strong quarterly results from retailers as a sign of health
among consumers who account for 70% of U.S. economic growth.
Target notched its biggest-ever gain, while Lowe's had its best day in more
than a year, leading a broad rally in companies that rely on consumer spending.
Nordstrom, Kohl's, Gap and other retailers closed higher.
Technology companies accounted for a big share of the gains. Financial
stocks rose as bond prices fell, pushing yields higher. Real estate and
materials stocks lagged the rest of the market.
The Trump administration has imposed a 25% tariff on $250 billion in Chinese
imports. A pending 10% tariff on another $300 billion in goods would hit
everything from toys to clothing and shoes that China ships to the United
States. But 60% of the new tariffs wouldn't go into effect until mid-December,
and others were taken off the table altogether.
ENERGY: Benchmark U.S. crude gained 23 cents to $55.91 per barrel in
electronic trading on the New York Mercantile Exchange. The contract lost 45
cents on Wednesday to close at $55.68. Brent crude, used to price international
oils, gained 18 cents to $60.48 in London. It gained 27 cents the previous
session to $60.30.
CURRENCY: The dollar dropped to 106.44 yen from Wednesday's 106.62 yen. The
euro declined to $1.1108 from $1.1086.