Global stock markets mixed after Wall Street ends record week
HONG KONG — Global stock markets were mixed on Monday after a series of key interest rate decisions last week by the U.S. Federal Reserve, Japan, China and Britain.
The CAC 40 index in Paris fell 0.3% to 7,481.56 points after composite manufacturing activity data for September fell below the 50 threshold that separates expansion from contraction, signaling that the strong growth in the French economy seen in August has evaporated.
A similar update on German manufacturing showed that the HCOB manufacturing PMI, or purchasing managers’ index, fell in September to 40.3, below expectations. Germany’s DAX gained 0.4% to 18,796.33. In London, the FTSE 100 advanced 0.4% to 8,258.47.
The future of S&The P 500 and the Dow Jones Industrial Average were little changed.
Chinese stocks gained momentum after the central bank cut its 14-day reverse repurchase rate to 1.85% from 1.95% on Monday, after opting to leave policy rates unchanged last week. Markets had expected a cut. At the same time, officials said People’s Bank of China Governor Pan Gongsheng would hold a news conference to discuss support for the economy.
Hong Kong’s Hang Seng index slipped 0.2% to 18,226.58 while the Shanghai Composite Index gained 0.4% to 2,748.92.
Japanese markets were closed on Monday for a public holiday.
Japan’s monetary policy remained in focus after the Bank of Japan said Friday it would keep its benchmark rate unchanged at 0.25%.
That weakened the Japanese yen, which has fallen from last week’s peak to around 140 yen per U.S. dollar. The dollar was trading at 143.56 yen on Monday.
Elsewhere, Australia S&The P/ASX 200 index fell 0.7% to 8,152.90 points. The Reserve Bank of Australia begins a two-day monetary policy meeting on Monday.
South Korea’s Kospi rose 0.3% to close at 2,602.01.
Friday, the S&The P 500 index slipped 0.2% from its record high, closing at 5,702.55. The Nasdaq Composite fell 0.4% to 17,948.32. The Dow Jones Industrial Average, meanwhile, gained 0.1% to close at another record high of 42,063.36.
Last week, the Fed reduce its main interest rate for the first time in more than four years, and more are likely to come, ending a two-decade stretch of keeping the rate high in hopes of slowing the U.S. economy enough to curb high inflation. its peak two summers ago and Chairman Jerome Powell said the Fed can focus more on maintaining the strength of the labor market and the economy get out of a recession.
The Fed remains under pressure as hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have hurt the economy.
Critics also say the U.S. stock market may be overheated because of expectations that the Federal Reserve will achieve what once seemed nearly impossible: bring inflation down to 2% without creating a recession.
Also last week, the Bank of England kept its main interest rate at 5%, following the Fed’s decision.
This week, we will release preliminary reports on U.S. economic activity, the final revision of how quickly the economy grew during the spring, and an update on U.S. consumer spending.
In other trading Monday morning, U.S. benchmark crude oil fell 12 cents to $70.88 a barrel. Brent, the international benchmark, fell 8 cents to $74.41.
The euro fell from 1.1162 to 1.1096 dollars.
