World shares mostly gain after uptick in inflation pulls US stocks lower
[August 15, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — World shares are generally higher after most
stocks on Wall Street fell following a disappointing report that said
inflation was worse last month at the U.S. wholesale level than
economists had expected.
The future for S&P 500 gained 0.2% while that for the Dow Jones
Industrial Average went up 0.8%. Meanwhile, oil prices slipped.
In early European trading, Germany's Dax rose 0.4% to 24,479.85.
Britain's FTSE 100 was down less than 0.1%. In Paris, the CAC 40 added
0.7% to 7,924.10.
China reported data showing its economy was feeling pressure from higher
U.S. tariffs in July, while property investments fell further.
Retail sales rose 3.7% year-on-year, down from 4.8% in June, while
investments in factory equipment and other fixed assets rose a meager
1.6%, compared with 2.8% growth in January-June.
Uncertainty over tariffs on exports to the United States is still
looming over manufacturers after President Donald Trump extended a pause
in sharp hikes in import duties for 90 days following a 90-day pause
that began in May.
The Shanghai Composite index added 0.8% to 3,696.77, but Hong Kong’s
Hang Seng index fell 1.2% to 25,216.45.
“Chinese economic activity slowed across the board in July, with retail
sales, fixed asset investment, and value added of industry growth all
reaching the lowest levels of the year. After a strong start, several
months of cooling momentum suggest that the economy may need further
policy support,” ING Economics said in a market commentary.
In Japan, the Nikkei 225 gained 1.7% to 43,378.31 after the government
reported that the economy grew at a 1% annual pace in the April-June
quarter. That was better than analysts had expected.
Elsewhere in Asia, Australia’s S&P/ASX 200 rose 0.7% to 8,938.60.
Taiwan’s TAIEX gained 0.4% while India’s BSE Sensex edged 0.1% higher.
Attention later Friday will likely focus on an update on U.S. retail
sales and on a meeting between U.S. President Donald Trump and Russian
President Vladimir Putin.
On Thursday, seven out of every 10 stocks within the S&P 500 fell,
though the index edged up by less than 0.1% to set another all-time
high. The Dow Jones Industrial Average dipped 11 points, or less than
0.1%, and the Nasdaq composite fell less than 0.1% from its record set
the day before.
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A person stands in front of an electronic stock board showing
Japan's Nikkei index at a securities firm Tuesday, Aug. 12, 2025, in
Tokyo. (AP Photo/Eugene Hoshiko)
 The inflation report said that
prices jumped 3.3% last month at the U.S. wholesale level from a
year earlier. That was well above the 2.5% rate that economists had
forecast, and it could hint at higher inflation ahead for U.S.
shoppers as higher costs make their way through the system.
The data led traders to second guess their widespread consensus that
the Federal Reserve will cut interest rates at its next meeting in
September. Lower rates can boost investment prices and the economy
by making it cheaper for U.S. households and businesses to borrow to
buy houses, cars or equipment, but they also risk worsening
inflation.
Higher interest rates drag on all kinds of companies by keeping the
cost to borrow high. They can hurt smaller companies in particular
because they often need to borrow to grow. The Russell 2000 index of
smaller U.S. stocks tumbled a market-leading 1.2%.
Thursday’s disappointing data followed an encouraging update earlier
in the week on prices at the consumer level. A separate report on
Thursday, meanwhile, said fewer U.S. workers applied for
unemployment benefits last week. That’s a good sign for workers,
indicating that layoffs remain relatively low at a time when job
openings have become more difficult to find.
But a solid job market could also give the Fed less reason to cut
interest rates in the short term.
Big Tech stocks helped mask Wall Street’s losses. Amazon rose 2.9%
to add to its gains from the prior day when it announced same-day
delivery of fresh groceries in more than 1,000 cities and towns.
Because Amazon is so huge, with a market value of $2.45 trillion,
the movements for its stock carry much more weight on the S&P 500
than the typical company’s.
In other dealings early Friday, U.S. benchmark crude lost 8 cents to
$63.88 per barrel. Brent crude, the international standard, fell 11
cents to $66.73 per barrel.
The dollar edged lower to 146.86 Japanese yen from 147.20 yen. The
euro rose to $1.1682 from $1.1654.
___
AP Business Writer Stan Choe contributed.
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