HONG KONG — Global stock markets presented a mixed performance on Wednesday following recent records set by U.S. benchmarks, suggesting the U.S. economy may be slowing without tipping into recession.
U.S. Markets and Futures: The future for the Dow Jones Industrial Average dipped by 0.1%, while the S&P 500 futures rose by 0.1%. U.S. markets are closed on Wednesday in observance of Juneteenth.
European Markets: European equity markets opened lower. London’s FTSE 100 dropped 0.2% to 8,177.86 after data showed British inflation fell to the central bank’s 2% target for the first time in nearly three years, bolstering expectations that the Bank of England will hold the rate at 5.25% in their upcoming meeting on Thursday. Germany’s DAX slid 0.1% to 18,109.65, and the CAC 40 in Paris shed 0.2% to 7,615.76.
Asian Markets: Tokyo’s Nikkei 225 index climbed 0.2% to 38,570.76 after Japan’s trade data for May showed a 13.5% rise in exports and a 9.5% increase in imports from a year earlier, driven by higher prices and a weaker yen. Minutes from the Bank of Japan’s latest policy meeting indicated a debate over the potential inflationary impact of the yen’s weakness, with Governor Kazuo Ueda hinting at a possible interest rate hike depending on future economic data.
Hong Kong’s Hang Seng surged 2.9% to 18,430.39, while the Shanghai Composite index fell 0.4% to 3,018.05 following remarks from the head of China’s securities watchdog about enhancing oversight of financial activities to mitigate risks. Sydney’s S&P/ASX 200 edged down 0.1% to 7,769.70, and South Korea’s Kospi jumped 1.2% to 2,797.33. Taiwan’s Taiex gained 2%, while Bangkok’s SET dropped 1%.
U.S. Market Performance on Tuesday: On Tuesday, the S&P 500 added 0.3% to close at 5,487.03, marking its 31st all-time high of the year. The Nasdaq composite inched up by less than 0.1% to 17,862.23, and the Dow Jones Industrial Average rose 0.2% to 38,834.86. Nvidia led gains, climbing 3.5%, and pushing the S&P 500 higher, while the company’s market value remained above $3 trillion.
Economic Indicators: The Commerce Department reported that retail sales increased by 0.1% in May, falling short of economists’ projections, with April sales revised to show a 0.2% decline. This suggests potential cracks in household spending, the primary driver of the U.S. economy, amid persistent inflation and financial strain on lower-income households.
Commodities: In electronic trading on the New York Mercantile Exchange, U.S. benchmark crude oil slipped by 15 cents to $80.56 per barrel, and Brent crude fell by 17 cents to $85.16 per barrel.
Currencies: The dollar weakened to 157.76 Japanese yen from 157.87 yen, and the euro decreased slightly to $1.0736 from $1.0738.
As global markets react to a mix of economic indicators and policy signals, investors remain cautious about the stability and future direction of major economies.
Source: AP
