TOKYO (AP) – Global shares traded mixed yesterday as pessimism spread among investors about any imminent interest rate cut in the United States (US).
France’s CAC 40 added 0.2 per cent to 7,334.46 in early trading. Germany’s DAX was little changed, declining less than 0.1 per cent to 16,431.08. Britain’s FTSE 100 declined nearly 0.1 per cent to 7,440.86. US shares were set to be mixed with Dow futures inching down less than 0.1 per cent to 37,444.00, while S&P 500 futures edged up nearly 0.1 per cent to 4,773.50.
Japan’s benchmark Nikkei was little changed, inching down less than 0.1 per cent to finish at 35,466.17. Australia’s S&P/ASX 200 slipped 0.6 per cent to 7,346.50. South Korea’s Kospi gained 0.2 per cent to 2,440.04. Hong Kong’s Hang Seng reversed earlier losses and added 0.8 per cent to 15,391.79, while the Shanghai Composite rose 0.4 per cent to 2,845.78.
Speculation has been growing that the Federal Reserve may wait longer than traders expect to begin cutting interest rates after jacking them drastically higher over the past two years. Lower rates would relax the pressure on the economy and financial system, while also goosing prices for investments.
“Investors continue to come back to their senses, and the latter involves trimming the interest rate cut expectations,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“Robust economic data added to the thinking that, yes, maybe March is too early for the Fed to announce the first rate cut.”
In energy trading, benchmark US crude rose USD0.56 cents to USD73.12 a barrel.
Brent crude, the international standard, added USD0.34 to USD78.22 a barrel.
In currency trading, the US dollar inched down to JPY147.84 from JPY148.11. The euro cost USD1.0885, little changed from USD1.0886.
