Stock market today: World stocks are mixed ahead of key US inflation
data
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[December 11, 2024] By
ZIMO ZHONG
HONG KONG (AP) — European markets opened lower while Asian stocks were
mixed on Wednesday after U.S. indexes drifted lower on Tuesday ahead of
an update on U.S. consumer inflation due later in the day.
Germany’s DAX was little changed at 20,321.39, and the CAC 40 in Paris
edged down less than 0.1% to 7,391.99. Britain’s FTSE 100 lost 0.3% to
8,251.80.
The future for the S&P 500 edged 0.1% higher while that for the Dow was
0.1% lower.
The Hang Seng in Hong Kong lost 0.8% to 20,155.05 while the Shanghai
Composite index advanced 0.3% to 3,432.49 as Chinese leaders convened an
annual planning meeting in Beijing that is expected to set economic
policies and growth targets for the coming year.
Earlier this week, top leaders agreed on a “moderately loose” monetary
policy during a meeting of the ruling Communist Party's Politburo.
That’s the first move in 10 years away from a more cautious, “prudent”
stance. Readouts from state media hinted at more robust stimulus to
support the world’s second-largest economy, but analysts remained
skeptical about any dramatic measures.
South Korea's market rose for a second straight day, recovering from
last week's political turmoil. The Kospi added 1% to 2,442.51.
Japan’s benchmark Nikkei 225 was little changed at 39,372.23 after data
showed that Japan’s wholesale inflation in November rose 3.7%
year-on-year, marking three consecutive months of increases and adding
to pressure on the Bank of Japan to raise interest rates.
Japan's central bank will hold a two-day policy meeting next week.
Markets widely expect the bank to raise short-term interest rates from
the current level of 0.25%.
Australia’s S&P/ASX 200 dipped 0.5% to 8,353.60.
On Tuesday, the S&P 500 dipped 0.3%, a day after pulling back from its
latest all-time high. Those were the first back-to-back losses for the
index in nearly a month, as momentum slows following a big rally that
has the benchmark index on track for one of its best years of the
millennium.
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A person gestures in front of an electronic stock board showing
Japan's Nikkei index at a securities firm Wednesday, Dec. 11, 2024,
in Tokyo. (AP Photo/Eugene Hoshiko)
The Dow Jones Industrial Average
fell 0.3% and the Nasdaq composite also slipped 0.3%.
Wednesday’s update on consumer inflation and a report Thursday on
inflation at the wholesale level will be the final big pieces of
data the Federal Reserve will get before its meeting next week,
where many investors expect this year’s third cut to interest rates.
The Fed has been easing its main interest rate from a two-decade
high since September to take pressure off the slowing jobs market,
after bringing inflation nearly down to its 2% target. Lower rates
would help give support to the economy, but they could also provide
more fuel for inflation.
Expectations for a series of cuts through next year have been a big
reason the S&P 500 has set so many records this year.
The yield on the 10-year Treasury rose to 4.22% from 4.20% late
Monday.
Even though the Fed has been cutting its main interest rate,
mortgage rates have remained high. That has hampered the housing
industry, and homebuilder Toll Brothers’ stock fell 6.9% even though
it delivered profit and revenue for the latest quarter that topped
analysts’ expectations.
In other dealings early Wednesday, U.S. benchmark crude oil gained
21 cents to $68.80 per barrel in electronic trading on the New York
Mercantile Exchange. Brent crude, the international standard, added
20 cents to $72.39 per barrel.
The U.S. dollar rose to 152.52 Japanese yen from 151.93 yen. The
euro was trading at $1.0502, down from $1.0531.
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