TOKYO (AP) – Global shares traded mixed yesterday, as investors weighed recent data highlighting a slowing United States (US) economy that offers both upsides and downsides for Wall Street.
France’s CAC 40 rose 0.4 per cent to 7,966.52, while Germany’s DAX surged 0.6 per cent to 18,516.05. Britain’s FTSE 100 edged up 0.2 per cent to 8,249.33. The future for the Dow Jones Industrial Average was up 0.2 per cent and the S&P 500 future rose 0.1 per cent.
In Asian trading, Japan’s benchmark Nikkei 225 shed 0.9 per cent to finish at 38,490.17.
Australia’s S&P/ASX 200 edged up 0.4 per cent to 7,769.00. South Korea’s Kospi jumped 1.0 per cent to 2,689.50. Hong Kong’s Hang Seng slipped 0.1 per cent to 18,424.96, while the Shanghai Composite dipped 0.8 per cent to 3,065.40.
Australia’s economy grew 0.1 per cent in the first quarter, according to data released yesterday, which some analysts said was weaker than expected.
“This means that the RBA faces the conundrum of having growth heading south and inflation heading north,” Chief Market Analyst at KCM Trade Tim Waterer said in a commentary, referring to the Australian central bank.
Cash income for Japanese workers rose 2.1 per cent in May, more than forecast, and analysts said recent data on wage growth in Japan will turn more pronounced once results of the recent spring labour negotiations kick in. That means the Bank of Japan may be more likely to raise interests rates.
On Tuesday, the S&P 500 ticked up by 0.2 per cent, though more stocks within the index fell than rose. The Dow Jones Industrial Average rose 0.4 per cent and the Nasdaq composite added 0.2 per cent.
If the US Federal Reserve decides to cut interest rates, that would ease pressure on financial markets. The risk is that the economy might overshoot and end up in a painful recession that would cause layoffs for workers across the country and weaken corporate profits, dragging stock prices lower.
A report on Tuesday said the number of US job openings at the end of April dropped to the lowest level since 2021. But it followed a report on Monday that showed US manufacturing contracted in May for the 18th time in 19 months. Worries about a slowing economy have hit the price of crude oil in particular this week, raising the possibility of less growth in demand for fuel.
In energy trading, benchmark US crude rose 24 cents to USD73.49 a barrel. Brent crude, the international standard, added 26 cents to USD77.78 a barrel.
In currency trading, the US dollar rose to JPY156.22 from JPY154.84. The euro cost USD1.0878, down from USD1.0883.
