TOKYO (AP) – Global shares were mixed yesterday after Wall Street indexes finished little changed as investors awaited earnings results from major global companies.
The United States (US) government will release economic growth data for the fourth quarter today. Economists expect the economy expanded at an annual pace of less than one per cent, down from 1.9 per cent in the third quarter, following a contraction in the first half of 2022. Investors will get more updates on personal spending and income on Friday.
France’s CAC 40 fell 0.2 per cent to 7,040.34. Germany’s DAX fell 0.2 per cent to 15,064.94. Britain’s FTSE 100 rose 0.1 per cent to 7,762.45. The future for the S&P 500 was down 0.4 per cent and that for the Dow Jones Industrial Average shed 0.3 per cent.
On Tuesday, the S&P 500 slipped less than 0.1 per cent and the Dow industrials rose 0.3 per cent. The Nasdaq composite fell 0.3 per cent while the Russell 2000 gave up 0.3 per cent.
Australia reported higher than expected inflation figures yesterday, setting off expectations for another interest rate hike. Consumer inflation rose 8.4 per cent in December, higher than the forecast of 7.6 per cent. It anchored expectations for another 25 basis-point raise from the Reserve Bank of Australia in February, said IG market analyst Yeap Jun Rong.
“It’s not the end of the world, but it is a little worrying that Aussie inflation hasn’t yet started to trend lower. We believe it will in the next few months,” said economist and co-founder at Wealthi Peter Esho.
Japan’s benchmark Nikkei 225 gained nearly 0.4 per cent to finish at 27,395.01. Australia’s S&P/ASX 200 shed 0.3 per cent to 7,468.30, while South Korea’s Kospi jumped 1.4 per cent to 2,428.57.
The Sensex in Mumbai lost 1.2 per cent to 60,247.10. Major energy and mining conglomerate Adani group saw losses across its group companies after short-selling firm Hindenburg Research released a report including various allegations against the companies.
Flagship Adani Enterprises lost 1.5 per cent while six other major Adani companies logged losses of up to six per cent. The loss in market capitalisation amounted to more than USD7 billion, according to the newspaper Financial Times.
In a statement, the Adani group said it was “shocked” by the report.
“The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” said the statement by the group’s chief financial officer Jugeshinder Singh.
Stocks have been volatile as investors try to get a better sense of how inflation is affecting the economy, the potential for a recession and whether the US Federal Reserve can ease up on its aggressive interest rate increases.
The Fed will announce its next rate increase on February 1 and traders expect a quarter-point raise, which would mark a softening of the central bank’s pace.
The US government will release gross domestic product data for the fourth-quarter today.
Economists expect growth of less than one per cent, down from 1.9 per cent in the third quarter, and a contraction during the first half of 2022. Investors will get more updates on personal spending and income tomorrow.
In energy trading, benchmark US crude gained USD0.18 to USD80.31 a barrel in electronic trading on the New York Mercantile Exchange. It settled 1.8 per cent lower overnight. Brent crude, the international pricing standard, rose USD0.38 to USD86.51 a barrel.
In currency trading, the US dollar edged up to JPY130.27 from JPY130.18. The euro cost USD1.0890, inching up from USD1.0889.
