Trading in global markets is mixed and muted ahead of a key Fed chair speech
Global shares traded mixed Friday ahead of a speech by Federal Reserve Chair Jerome Powell that might deliver clues on how quickly and deeply the Fed may cut interest rates.
France's CAC 40 rose 0.3% in early trading to 7,546.93, while Germany's DAX gained 0.4% to 18,563.15. Britain's FTSE 100 added nearly 0.2% to 8,302.17. U.S. shares were set to drift higher with Dow futures up 0.3% at 40,930.00. S&P 500 futures rose 0.4% to 5,614.75.
Earlier in Asia, Japan's benchmark Nikkei 225 rose 0.4% to finish at 38,364.27. Australia's S&P/ASX 200 slipped less than 0.1% to 8,023.90. South Korea's Kospi edged down 0.2% to 2,701.69. Hong Kong's Hang Seng slipped nearly 0.2% to 17,612.10, while the Shanghai Composite gained 0.2% to 2,854.37.
Japan's plans for interest rates were also closely watched. Bank of Japan Gov. Kazuo Ueda in his comments to parliament appeared to indicate more increases may be coming, but they would be gradual. The Bank of Japan was closely monitoring the recent gyrations in stock prices and currencies but saw recent wage increases as a positive sign, he said.
Japan's economy was dragged down for years by deflation, a gradual decline in prices that reflects a stagnant economy. The bank ended negative interest rates in March and then raised rates in July.
"We stuck to a very loose monetary policy until March. The point was our commitment to that until it's confirmed the economy is on track to realize a gradual, stable rise in prices that's sustainable," Ueda told lawmakers.
Data is due next week on GDP, or gross domestic product, the value of a nation's products and services, from the U.S., Canada, Germany and India.
Weighing on stocks recently was a mixed picture on the U.S. economy, which has been slowing under the weight of high interest rates meant to get inflation under control.
One report showed slightly more U.S. workers applied for unemployment benefits last week than expected.
A second report suggested U.S. business activity remains deeply split. Growth for services businesses is accelerating, according to preliminary data from S&P Global Market Intelligence. But the country's manufacturing sector appears to be contracting at a more severe rate.
The Fed has pulled its main interest rate up to the highest level in more than two decades. With inflation slowing, the wide expectation is for the Federal Reserve to cut interest rates at its next meeting in September, which would be the first easing since the COVID-19 pandemic crash of 2020.
That's why so much attention is on Jackson Hole, Wyoming, where Powell will speak Friday at an economic symposium that's been the site of big Fed policy announcements in the past.
One danger is if expectations for coming cuts have gone overboard among investors. U.S. companies continue to report mostly better-than-expected profits for the spring.
In energy trading, benchmark U.S. crude rose 47 cents to $73.48 a barrel. Brent crude, the international standard, rose 49 cents to $77.71 a barrel.
In currency trading, the U.S. dollar fell to 145.87 yen from 146.24 yen. The euro cost $1.1126, up from $1.1115.
Source: Associated Press
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