Stock market today: World stocks are mixed ahead of the Federal Reserve's decision on rates

[December 18, 2024]  By ZIMO ZHONG

HONG KONG (AP) — European markets opened higher after a mixed trading session in Asia ahead of the Federal Reserve's final rate decision of this year.

The futures for the S&P 500 and the Dow Jones Industrial Average were 0.2% higher.

France’s CAC 40 rose 0.1% in early trading to 7,373.03, while Germany’s DAX added 0.2% to 20,285.04. Britain’s FTSE 100 was up 0.2% to 8,211.66 after official data showed inflation in November climbed to 2.6%, rising for a second straight month.

The Bank of England is expected to keep its key rate unchanged when it meets on Thursday, as is the Bank of Japan, which wraps up a policy meeting on Friday.

Japan’s benchmark Nikkei 225 dropped 0.7% to 39,081.71 after the government reported that exports rose 3.8% in November year-on-year. Meanwhile, imports fell by 3.8%, according to data from the Ministry of Finance.

Nissan Motor Corp.’s shares jumped 23.7% after it said it was in talks on closer collaboration with Honda Motor Co., though no decision had been made on a possible merger. The latter’s shares lost 3%.

Nissan, Honda and Nissan alliance member Mitsubishi Motors Corp. agreed in August to share components for electric vehicles like batteries and to jointly research software for autonomous driving to adapt better to dramatic changes in the auto industry.

In Hong Kong, the Hang Seng added 0.8% to 19,864.55 and the Shanghai Composite index gained 0.6% to 3,382.21.

In South Korea, the Kospi jumped 1.1% to 2,484.43. Australia’s S&P/ASX 200 edged 0.1% lower to 8,309.40.

On Tuesday, the S&P 500 slipped 0.4% and the Dow dropped 0.6%. The Nasdaq composite retreated 0.3% from its record set the day before.

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Dec. 18, 2024. (AP Photo/Ahn Young-joon)

The S&P 500 is on track for one of its best years since the millennium, up nearly 27%, because the U.S. economy has remained remarkably resilient, hopes are high that President-elect Donald Trump’s policies will boost growth but not inflation too badly and the Federal Reserve has begun to make things easier by cutting interest rates from a two-decade high.

The Fed is widely expected to announce the third cut of the year to its main interest rate on Wednesday, and officials are also scheduled to unveil projections about where they see rates heading in upcoming years.

Expectations for coming cuts have been on the downswing, though, as inflation looks like it could stubbornly stick above the Fed’s 2% target after slowing sharply from its peak above 9%.

A report on Tuesday showed sales at U.S. retailers strengthened by more last month than economists expected. That could be an indication of an economy that doesn’t need much more help from easier interest rates. While lower rates can goose the economy, they can also give inflation more fuel.

Bitcoin set a record above $108,000 on Tuesday before pulling back, according to CoinDesk.com. It’s catapulted from roughly $44,000 at the start of the year, riding a recent wave of enthusiasm that Trump will create a system that’s more favorable to digital currencies.

Late Wednesday it was trading at $104,304.

In other dealings early Wednesday, U.S. benchmark crude oil rose 54 cents to $70.19 per barrel. Brent crude, the international standard, added 53 cents to $73.72 per barrel.

The U.S. dollar rose to 153.71 Japanese yen from 153.50 yen.

The euro rose to $1.0493 from $1.0491.

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