Global shares mixed amid inflation, oil price worries

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Global stocks are mixed as concerns about inflation beat expectations the US Federal Reserve may accelerate its plans to raise interest rates

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TOKYO – Global stocks were mixed on Wednesday as inflation concerns dashed hopes of a faster-than-expected rate hike by the US Federal Reserve.

France’s CAC 40 rose 0.4% to 7,074.05 in early trade, while Germany’s DAX rose 0.1% to 15,955.14. Britain’s FTSE 100 rose 0.5% to 7,303.68. Futures for the Dow Jones Industrial Average fell 0.1% to 35,744.00. The future of the S&P 500 fell 0.1% to 4,685.00.

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Shares are likely to see more mixed trading this week, with US markets closing Thursday for Thanksgiving and then closing early on Friday.

In Asian trade, Japan’s Nikkei 225 fell 1.6% to 29,302.66 after the national holiday on Tuesday. Technology stocks especially took a hit on speculation about the Fed’s move. South Korea’s Kospi ended 0.1% lower at 2,994.29. In Australia, the S&P/ASX 200 closed 0.2% down at 7,399.40. Hong Kong’s Hang Seng rose 0.1% to 24,685.50, while the Shanghai Composite gained 0.1% to 3,592.70.

“Markets continue to shift their expectations toward a tighter Fed monetary policy,” said Yep Jun Rong, a market strategist at IG, adding that investors will keep an eye on US data to be released later in the day.

Wall Street will get some pieces of economic data on Wednesday that could give investors a better sense of the pace and breadth of the economic recovery.

The Labor Department will release its weekly report on unemployment benefits. The Commerce Department releases data on third-quarter gross domestic product and its new home sales report for October.

The Fed will release minutes later in the day from its October policy meeting, potentially giving investors more information about the central bank’s plan to begin reducing bond purchases to help keep interest rates low. has been found.

Some Asian central banks have started raising interest rates to reduce inflation. New Zealand on Wednesday raised its benchmark interest rate by 0.25% to 0.75%.

In October, the Reserve Bank raised it to 0.5% from a record low of 0.25%, the first such increase in more than seven years, removing some of the support since the coronavirus pandemic began.

Investors are watching to see whether rising inflationary pressure will prompt the Fed to reduce bond purchases and intensify its plans to raise its benchmark interest rate.

The price of US crude rose after President Joe Biden ordered 50 million barrels of oil released from the country’s strategic reserves to help reduce energy costs. The move was made in collaboration with other large oil consuming countries including Japan, South Korea and India.

Benchmark US crude jumped 2.3% and wholesale petrol 3.4% on Tuesday

The release of oil reserves may not bring down oil prices, but analysts say it could serve as a message for OPEC. Biden is urging other big oil producers to increase production more quickly to match higher demand as economies recover from the earlier stages of the pandemic.

Benchmark US crude rose 42 cents to $78.92 a barrel on Wednesday. International benchmark Brent crude rose 45 cents to $82.76 a barrel.

The US dollar fell from 115.15 yen to 114.95 Japanese yen. The Euro is priced at $1.1238, which is less than $1.1249.

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Associated Press writer Nick Perry contributed from Wellington, New Zealand.

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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