Stock market today: Global shares trade mixed ahead of Federal Reserve rate decision

[September 18, 2024]  By YURI KAGEYAMA

TOKYO (AP) — Global shares were mixed Wednesday as investors awaited an expected interest rate cut by the U.S. Federal Reserve, the first in more than four years.

France's CAC 40 lost 0.2% in early trading to 7,474.92, while Germany's DAX inched down less than 0.1% to 18,723.53. Britain's FTSE 100 shed 0.5% to 8,268.29. The future for the Dow Jones industrial average rose 0.1%, while that for the S&P 500 futures was up less than 0.1%.

The Bank of Japan and the Bank of England are also holding monetary policy meetings later this week. But neither central bank is expected to move on rates, although the language of what the officials say could be an indicator of later moves and still influence markets.

Asian markets advanced. Japan’s Nikkei 225 gained 0.5% to finish at 36,380.17. Australia’s S&P/ASX 200 was virtually unchanged, inching up less than 0.1% to 8,142.10. South Korea’s Kospi added 0.1% to 2,575.41.

Trading was closed in Hong Kong for a national holiday. The Shanghai Composite index edged 0.5% higher to 2,717.28.

The Fed’s announcement is scheduled for Wednesday, with the overwhelming expectation on Wall Street for a cut to the federal funds rate. The rate has been in a range of 5.25% to 5.50% for over a year.

Lower rates would help boost the slowing economy, as it has become increasingly more expensive to borrow money for everything from houses to cars to corporate debt.

The Fed has been keeping its main interest rate at a two-decade high in hopes of grinding down on the economy enough to stifle high inflation.

People stand near an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Sept. 18, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

Japan reported its trade deficit totaled 695 billion yen, or $4.9 billion in August, down 26% from a year earlier, according to the Finance Ministry, recording a deficit for the second month straight.

Exports totaled 8.4 trillion yen ($59 billion), up 5.6% from the same month the previous year. Shipments to Asia rose while exports to the U.S. fell. Imports totaled 9.1 trillion yen ($64 billion), up 2.3% from a year earlier. By region, imports from European nations, in categories such as pharmaceuticals, showed the strongest growth.

Both numbers fell short of forecasts for 10% growth in exports and and even higher increases for imports.

The Japanese yen has gained in value against the U.S. dollar in recent weeks, helping to boost the country’s purchasing power.

The dollar slipped to 141.81 Japanese yen from 142.34 yen. The dollar had traded at levels over 150 yen earlier this year.

The euro cost $1.1131, up from $1.1117.

In energy dealings, benchmark U.S. crude declined 86 cents to $70.33 a barrel. Brent crude, the international standard, fell 82 cents to $72.88 a barrel.

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