Global Stocks Mixed Wednesday 08/21 06:07
Global stock markets were mixed Wednesday as investors looked ahead to a
speech by the Federal Reserve chairman for signs of possible plans for more
U.S. interest rate cuts.
BEIJING (AP) -- Global stock markets were mixed Wednesday as investors
looked ahead to a speech by the Federal Reserve chairman for signs of possible
plans for more U.S. interest rate cuts.
Market benchmarks in London and Frankfurt rose in early trading. Tokyo and
Australia closed lower and Shanghai was little changed.
U.S. stocks fell Tuesday after a slide in bond yields and a mixed batch of
corporate earnings. Financial sector stocks led the declines.
Investors looked ahead to the Fed's release Wednesday of notes from its
policymaking meeting last month and a speech Friday by Chairman Jerome Powell.
Markets have "entered a holding pattern" ahead of Powell's speech at an
annual gathering in Jackson Hole, Wyoming, Jeffrey Halley of Oanda said in a
Investors expect Powell to signal the Fed "is about to embark on a
reinvigorated wave of easing," said Halley. However, he said U.S. data "simply
does not support the need for an aggressive easing cycle."
London's FTSE 100 rose 0.7% in early trading to 7,177.20 and Frankfurt's DAX
climbed 0.7% to 11,729.41. France's CAC-40 jumped 1% to 5,401.05.
Tokyo's Nikkei 225 shed 0.3% to 20,618.57. Hong Kong's Hang Seng inched up
0.2% to 26,270.04. The Shanghai Composite Index was little changed at 2,880.33.
Seoul's Kospi gained 0.2% to 1,964.65 while Sydney's S&P-ASX 200 fell 0.9%
to 6,483.30. India's Sensex lost 0.6% to 37,114.28.
Taiwan was higher and New Zealand was lower, while Southeast Asian markets
On Wall Street, the futures for the S&P 500 index rose 0.6% and futures for
the Dow Jones Industrial Average climbed 0.5%.
On Tuesday, the S&P 500 index snapped a three-day winning streak and fell
0.8% to 2,900.51. The Dow Jones average slid 0.7% to 25,962.44. The Nasdaq
composite dropped 0.7% to 7,948.56.
The U.S. market has been volatile this month as investors try to parse
conflicting signals on the U.S. economy and determine whether a recession is on
the horizon. A key concern is that the U.S.-Chinese tariff war will weigh on
global economic growth.
Some chipmakers rose on Monday's news the Trump administration is delaying
enforcement of export curbs on U.S. technology sales to Chinese telecom
equipment maker Huawei Technologies Ltd. Qualcomm added 1.6%.
Last week, many stock indexes around the world hit their lowest points of
the year before rallying. Analysts say the concerns that drove that sell-off
could resurface at any time.
ENERGY: Benchmark U.S. crude gained 12 cents to $56.25 per barrel in
electronic trading on the New York Mercantile Exchange. The contract shed 1
cent on Tuesday to close at $56.13. Brent crude, used to price international
oils, rose 33 cents to $60.36 per barrel in London. The contract advanced 27
cents the previous session to $60.03.
CURRENCY: The dollar rose to 106.51 yen from Tuesday's 106.22. The euro was
lower at $1.1095.