World shares are mixed as traders await cues on U.S. monetary policy
from Jackson Hole meeting
[August 22, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — World shares were mixed on Friday after Wall
Street fell to a fifth straight loss, hurt by losses for Walmart and
worries over coming cuts to interest rates.
Traders remain cautious, looking for cues about U.S. monetary policy
from a meeting of central bankers in Jackson Hole, Wyoming, where
Federal Reserve chair Jerome Powell is due to speak on Friday
The future for the S&P 500 added less than 0.1%, while that for the Dow
Jones Industrial Average rose 0.1%.
In early European trading, Germany's DAX added less than 0.1% to
24,295.57, while Britain's FTSE 100 fell 0.1% to 9,302.00. In Paris, the
CAC 40 added 0.1% to 7,946.47.
In Tokyo, the Nikkei 225 rose 0.1% to 42,633.29 after Japan’s core
inflation rate slowed to 3.1% in July, from 3.3% in June.
ING Economics, in a commentary, said the rate was broadly in line with
market consensus. Inflation staying above 3% raises chances of a rate
hike as soon as October, it said.
In Chinese markets, Hong Kong's Hang Seng index rose 0.8% to 25,312.62.
The Shanghai composite index climbed 1.5% to 3,825.76.
South Korea's Kospi added 0.9% to 3,168.73. Australia's S&P/ASX 200 fell
0.6% to 8,967.40 as traders sold to lock in gains after the benchmark
surged to record highs in recent trading sessions.
Taiwan's TAIEX lost 0.8% and India's BSE Sensex edged 0.6% lower.
Expectations for a rate cut by the Fed have been dialed back as central
bank officials stress concerns over inflation, Mizuho Bank said in a
commentary.
“The upshot is that the sands are arguably shifting, but Jackson Hole
may not be where lingering hawkish restraint goes to die,” it said. “In
other words, Powell may stick to his guns on (interim) restraint.”
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Dealers watch computer monitors near screens showing the foreign
exchange rate between U.S. dollar and South Korean won and the
Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing
room of Hana Bank in Seoul, South Korea, Wednesday, Aug. 20, 2025.
(AP Photo/Lee Jin-man)
 On Wall Street on Thursday, the S&P
500 slipped 0.4% to 6,370.17. Its losses have been relatively
modest, but it has not closed higher since setting a record on Aug.
14. The Dow Jones Industrial Average dropped 0.3% to 44,875.50, and
the Nasdaq composite fell 0.3% to 21,100.31.
Walmart was one of the market’s heaviest weights. It dropped 4.5%
after reporting a profit for the spring that fell short of analysts’
expectations, while Nvidia and other Big Tech stocks held a bit
steadier following two days of sharp swings.
The moves were stronger in the bond market, where Treasury yields
rose after a report forced Wall Street to scale back hopes that the
Federal Reserve may soon deliver relief by cutting interest rates.
A cut in interest rates would be the first of the year, and it would
give investment prices and the economy a boost by potentially making
it cheaper to borrow to buy cars or equipment. But it could also
risk worsening inflation.
The Fed has been hesitant to cut interest rates this year out of
fear that President Donald Trump’s tariffs could push inflation
higher, but a surprisingly weak report on job growth earlier this
month suddenly made the job market a bigger worry. Trump, meanwhile,
has angrily pushed for cuts to interest rates, often insulting
Powell while doing so.
In other dealings early Friday, U.S. benchmark crude gained 17 cents
to $63.69 per barrel. Brent crude, the international standard, shed
2 cents to $66.64 per barrel.
The U.S. dollar rose to 148.56 Japanese yen, from 148.37 yen. The
euro slipped to $1.1600 from $1.1606.
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