sunny.png
Friday September 18th, 2020 7:08PM

Global shares mostly rise as investors look ahead to Fed

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Global shares mostly rose Monday, continuing a period of increased volatility, as traders awaited cues from the U.S. central bank later in the week.

U.S. shares appeared set for gains with Dow futures up 1% and S&P 500 futures up 1.3% before the market open. France's CAC 40 gained 0.2% to 5,041, while Germany's DAX dropped 0.1% to 13,189. Britain's FTSE 100 edged down 0.2% to 6,023.

Shares in SoftBank, which announced Sunday that it was selling Britain’s Arm Holdings to computer graphics chip company Nvidia for $40 billion, jumped 9%. SoftBank spent $32 billion to acquire Arm in 2016. Nvidia is best known for its graphics processing chips, while Arm is renowned as an innovator in the “Internet of Things.”

Japan's Nikkei 225 gained 0.7% to finish at 23,559.30 after Japan’s ruling Liberal Democratic Party picked a new leader, who will by definition become the prime minister because of the party’s control over the more powerful lower house of Parliament. Yoshihide Suga, now the government spokesman, has said he will continue Shinzo Abe’s “Abenomics” policies of easy lending and deregulation.

“That decision should not be market moving as we fully expect a steady hand to remain on the tiller of Abenomics. Mr. Suga has signalled that no further rises in sales tax are on the horizon, but all else should stay the same,” said Jeffrey Halley, senior market analyst at Oanda.

“Of more interest will be if Mr. Suga signals that a new election will be held to mandate his new government,” Halley said.

Australia's S&P/ASX 200 added 0.7% to 5,899.50. South Korea's Kospi jumped 1.3% to 2,427.91. Hong Kong's Hang Seng rose 0.6% to 24,647.44, while the Shanghai Composite surged 0.6% to 3,278.81.

The Federal Reserve's Open Market Committee will meet this week. The U.S. central bank's massive aid for the economy has helped underpin the markets’ recovery from the coronavirus downturn by slashing short-term interest rates to record lows and buying up bonds to support markets.

The Bank of Japan also is due to hold a policy meeting this week. No major changes are expected in its ultra-lax monetary policies.

Stephen Innes, chief global market strategist at AxiCorp, noted that investors face “many uncertainties," including the U.S. elections and the global pandemic.

“Unquestionably the virus story is the dominant macro pivot event, especially for equities, and is more likely to be dominated by optimism surrounding a vaccine. Indeed investors will be keeping their eye on the vaccine prize,” he said.

Analysts expect swings to continue to rattle markets for weeks, if not months, as investors wait for more clarity on several key issues. At the head of the list of uncertainties is what to do with Big Tech stocks, which critics have long said were due for a slide after soaring too high through the summer.

In energy trading, benchmark U.S. crude dropped 11 cents to $37.32 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, was down 5 cents at $39.78 a barrel.

The dollar slipped to 105.98 Japanese yen from 106.16 yen on Friday. The euro cost $1.1865, up from $1.1845.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden faces worries that Latino support slipping in Florida
Florida is the nation's leading presidential battleground, and there’s mounting anxiety among Democrats that Joe Biden's standing among Latinos in the state is slipping
8:15AM ( 20 minutes ago )
Suga wins party vote, all but assuring election as Japan PM
Yoshihide Suga has been elected as the new head of Japan’s ruling party, virtually guaranteeing him parliamentary election as the country’s next prime minister
7:48AM ( 48 minutes ago )
Global shares mostly rise as investors look ahead to Fed
Global shares are mostly higher as traders await cues from the U.S. central bank later in the week
7:44AM ( 52 minutes ago )
Associated Press (AP)
Amazon to hire 100,000 to keep up with online shopping surge
Amazon is hiring another 100,000 people to keep up with a surge of online orders
7:15AM ( 1 hour ago )
US ambassador to China to step down next month
The U.S. ambassador to China will step down early next month, ending a three-year tenure marked by a trade war and increasingly bitter relations between the world’s two largest economies
6:55AM ( 1 hour ago )
The Latest: Berlusconi released from COVID hospitalization
Italy’s former Premier Silvio Berlusconi has been released from the hospital after a 10-day stay with COVID-19 and pneumonia, saying he had never feared as much for his life as from this “insidious” disease
6:43AM ( 1 hour ago )
AP Business
Asia shares rise as investors look ahead to Fed meeting
Asian shares are rising, despite the rollercoast ride that Wall Street ended with last week, as traders awaited cues from the U.S. central bank expected later in the week
3:08AM ( 5 hours ago )
India's Modi faces turbulent session as Parliament reopens
Indian lawmakers have returned to Parliament after a five-month absence
2:56AM ( 5 hours ago )
The Latest: S. Korea eases restrictions as virus cases drop
South Korea has reported its lowest daily virus tally in about a month as it began easing its tough social distancing rules in the greater Seoul area
10:41PM ( 9 hours ago )
AP Business - Economy
The Latest: Austria’s leader says country seeing 2nd wave
Austria’s leader says his country is seeing the start of a “second wave” of coronavirus infections
4:59AM ( 1 day ago )
The Latest: Virus cases hit another record in Czech Republic
Coronavirus infections continue to grow in the Czech Republic, reaching a record level for the fourth day this week
4:24AM ( 1 day ago )
The Latest: India's cases rise to 4.75M with another spike
India has registered a single-day spike of 94,372 new confirmed coronavirus cases, driving the country’s overall tally to 4.75 million
12:59AM ( 1 day ago )
AP Business - Financial Markets
Indonesia's capital under virus order, hospitals nearly full
Main streets are less crowded as Indonesia’s capital begins two weeks of social restrictions to curb a rise of coronavirus infections that has pushed its critical-care hospital capacity to unsafe levels
1:08AM ( 7 hours ago )
Greece, Turkey signal willingness to talk about sea dispute
After weeks of tension in the eastern Mediterranean, Greece and Turkey have signaled willingness to start talks about a long-standing sea dispute
12:53PM ( 19 hours ago )
The Latest: Domestic air travel recovers in Wuhan, China
Domestic air travel in Wuhan, the epicenter of the global coronavirus outbreak, has returned to pre-pandemic levels, authorities say
8:44PM ( 1 day ago )
AP Business - Industries
Las Vegas shooting victims closer to getting $800M payout
More than 4,400 relatives and victims of the deadliest mass shooting in recent U.S. history could receive a total of $800 million in payouts from MGM Resorts International and its insurers by January
9:14PM ( 3 days ago )
Las Vegas shooting victims closer to getting $800M payouts
More than 4,400 relatives and victims of the deadliest mass shooting in recent U.S. history could receive about $800 million in payouts from MGM Resorts International and its insurers by January
8:48PM ( 3 days ago )
European Central Bank expects to use full extent of stimulus
The European Central Bank has left its key stimulus policies unchanged with plenty still in the pipeline to bolster the eurozone economy’s rebound from the severe coronavirus shutdowns
2:32PM ( 3 days ago )
AP Business - Financial Services
Biden faces worries that Latino support slipping in Florida
Florida is the nation's leading presidential battleground, and there’s mounting anxiety among Democrats that Joe Biden's standing among Latinos in the state is slipping
8:15AM ( 22 minutes ago )
Suga wins party vote, all but assuring election as Japan PM
Yoshihide Suga has been elected as the new head of Japan’s ruling party, virtually guaranteeing him parliamentary election as the country’s next prime minister
7:48AM ( 50 minutes ago )
Belarus leader visits Russia to secure support amid protests
Belarus’ authoritarian president is visiting Russia in a bid to secure more loans and political support as demonstrations against the extension of his 26-year rule enter their sixth week
7:43AM ( 54 minutes ago )
Gulf Coast residents brace for Sally, possible new hurricane
Storm-weary residents of the U.S. Gulf Coast are preparing for a new weather onslaught as Tropical Storm Sally churns toward them
7:39AM ( 59 minutes ago )
The Latest: Major economies shrink amid COVID-19 pandemic
A global development agency said the world’s 20 major industrialized nations have seen their economies shrink in an unprecedented manner between April and June amid the COVID-19 pandemic
7:38AM ( 59 minutes ago )