cloudy.png
Saturday December 3rd, 2022 5:16PM

Global shares rise on Fed rate hopes despite China worries

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Global shares gained Thursday, although optimism about the Federal Reserve holding back on aggressive interest rate raises was countered by some uncertainty about coronavirus restrictions in China.

France's CAC 40 edged up 0.1% in early trading to 6,685.49, while Germany's DAX gained 0.3% to 14,474.23. Britain's FTSE 100 gained 0.1% to 7,475.55. The future for the Dow industrials edged 0.2% higher. The future for the S&P 500 added 0.3%.

Trading has been unsteady during the holiday-shortened week. U.S. markets are closed Thursday for Thanksgiving and will close early on Friday.

“A headwind for Asian markets is the COVID situation in China, where investors seem to be avoiding local assets and commodities as the country is seeing near-record numbers of COVID cases. Broad restrictions will keep weighing on risk sentiment and macroeconomic fundamentals, putting pressure on the outlook for cyclical stocks and commodities,” Anderson Alves of ActivTrades said in a commentary.

Pandemic lockdowns have been expanding across China, including in Zhengzhou, where workers at a factor for Apple's iPhone clashed with police earlier this week.

Across China, the number of new cases reported Thursday was 31,444, the highest since the virus was first detected in late 2019.

In Asian trading, Japan's benchmark Nikkei 225 jumped 1.0% to finish at 28,383.09. Australia's S&P/ASX 200 added 0.1% to 7,241.80. South Korea's Kospi gained nearly 1.0% to 2,441.33. Hong Kong's Hang Seng rose 0.8% to 17,660.90, while the Shanghai Composite fell 0.3% to 3,089.31.

Minutes from the Federal Reserve's most recent policy meeting showed central bank officials agreed that smaller rate hikes would likely be appropriate “soon.” That suggests policymakers are seeing signs that inflation may be cooling as the economy slows with more costly borrowing.

At their Nov. 1-2 meeting, Fed officials expressed uncertainty about how long it might take for their rate hikes to slow the economy enough to tame inflation. At a news conference afterward, Chair Jerome Powell stressed the Fed wasn't even close to declaring victory in its fight to curb high inflation. Other Fed officials in the weeks since the meeting have signaled that additional hikes are still necessary.

The central bank’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March. It has warned that it may have to ultimately raise rates to previously unanticipated levels to cool the hottest inflation in decades.

Investors have been closely watching the latest economic and inflation data for any signs that might allow the Fed to ease up on future rate increases. Investors are worried that it could slam the brakes too hard on economic growth and bring on a recession.

In energy trading, benchmark U.S. crude lost 32 cents to $77.62 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 45 cents to $84.96 a barrel.

In currency trading, the U.S. dollar fell to 138.76 Japanese yen from 139.60 yen. The euro cost $1.0419 up from $1.0398.

___

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 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Global shares rise on Fed rate hopes despite China worries
Global shares are mostly higher, although optimism about the Federal Reserve holding back on aggressive interest rate hikes was countered by uncertainty over coronavirus restrictions in China
4:47AM ( 4 minutes ago )
Ukraine works to restore power after devastating strikes
Kyiv's mayor says that 70% of the Ukrainian capital has been left without power after Moscow unleashed yet another devastating missile barrage on Ukraine’s energy infrastructure
4:19AM ( 32 minutes ago )
China expands lockdowns as COVID-19 cases hit daily record
China is expanding pandemic lockdowns, including in a city where factory workers clashed with police this week, as its number of COVID-19 cases hits a daily record
3:54AM ( 57 minutes ago )
Associated Press (AP)
'Bodies drop' as Walmart manager kills 6 in Virginia attack
Police and witnesses say a manager at a Virginia Walmart pulled out a handgun before a routine employee meeting and began firing wildly in the break room, killing six people and injuring at least six others
12:03AM ( 4 hours ago )
Asian shares rise on Fed rate hopes despite China worries
Asian shares are higher, although optimism about the Federal Reserve holding back on aggressive interest rate hikes was countered by some uncertainty about coronavirus restrictions in China
11:39PM ( 5 hours ago )
Protesting workers beaten at Chinese iPhone factory
Police beat workers protesting over a pay dispute at the biggest factory for Apple’s iPhone, whose new model is delayed by controls imposed as China tries to contain a surge in COVID-19 cases
9:36PM ( 7 hours ago )
AP Business
Most Fed officials at last meeting backed slower rate hikes
Most Federal Reserve officials at their last meeting favored reducing the size of their interest rate hikes “soon’’— just before raising their benchmark rate by a substantial three-quarters of a point for a fourth straight time
3:08PM ( 13 hours ago )
Fed at last meeting saw few signs that inflation was easing
Federal Reserve officials at their last meeting saw “very few signs that inflation pressures were abating” before raising their benchmark interest rate by a substantial three-quarters of a point for a fourth straight time
2:08PM ( 14 hours ago )
High mortgage rates send homebuyers scrambling for relief
Mortgage rates are more than double what they were a year ago, so many homebuyers are looking for ways to put off some of the pain for a few years
12:58PM ( 15 hours ago )
AP Business - Economy
US stocks rise, remain unsteady ahead of Thanksgiving
Stocks rose on Wall Street, but trading remained unsteady ahead of the Thanksgiving holiday in the U.S. The S&P 500 rose 0.6% Tuesday at midday
11:44AM ( 1 day ago )
Stocks are mostly higher in the early going on Wall Street
Stocks are mostly higher in the early going on Wall Street but trading remained unsteady ahead of the Thanksgiving holiday in the U.S. The S&P 500 was holding on to a gain of 0.2% in the first few minutes of trading Tuesday, but the tech-heavy Nasdaq turned lower and was down 0.4%
9:51AM ( 1 day ago )
Italian premier presents economic measures on energy, family
Italian Premier Giorgia Meloni has presented the government’s first economic policy initiatives
7:37AM ( 1 day ago )
AP Business - Financial Markets
Most Ukrainians left without power after Russian strikes
Russia has targeted Ukraine’s battered power infrastructure with another barrage of strikes, forcing the country’s last three fully functioning nuclear power plants to disconnect from the grid, the Energy Ministry said, and leaving “the vast majority of electricity consumers” without power
10:55AM ( 17 hours ago )
Biden to continue family tradition of Nantucket Thanksgiving
President Joe Biden's family tradition of spending Thanksgiving on Nantucket may take on a more serious tone this year
7:36PM ( 1 day ago )
Public utility to pipe water to residents of 'Gasland' town
A new water line will deliver something that residents of a rural Pennsylvania community have gone without for the last 14 years — a clean, reliable supply of drinking water
5:35PM ( 1 day ago )
AP Business - Industries
Reality TV's Chrisleys get hefty sentences in fraud case
Reality TV stars Todd and Julie Chrisley have been sentenced to lengthy prison terms after being convicted earlier this year on charges including bank fraud and tax evasion
11:40PM ( 2 days ago )
Reality TV's Chrisleys sentenced for bank fraud, tax evasion
Reality TV stars Todd and Julie Chrisley have been sentenced to lengthy prison terms after being convicted earlier this year on charges including bank fraud and tax evasion
9:36PM ( 2 days ago )
Global stocks down after Wall St weekly loss on rate fears
Global stock markets are lower after Wall Street ended with a loss for the week amid anxiety about Federal Reserve plans for more interest rate hikes to cool inflation
4:48AM ( 3 days ago )
AP Business - Financial Services
Ukraine works to restore power after devastating strikes
Kyiv's mayor says that 70% of the Ukrainian capital has been left without power after Moscow unleashed yet another devastating missile barrage on Ukraine’s energy infrastructure
4:19AM ( 32 minutes ago )
China expands lockdowns as COVID-19 cases hit daily record
China is expanding pandemic lockdowns, including in a city where factory workers clashed with police this week, as its number of COVID-19 cases hits a daily record
3:54AM ( 57 minutes ago )
Long-time reformist leader Anwar named as Malaysian PM
Malaysia’s king has named reformist opposition leader Anwar Ibrahim as the country’s prime minister, ending days of uncertainties after the divisive general election produced a hung Parliament
3:44AM ( 1 hour ago )
Foxconn apologizes for pay dispute at China factory
The company that assembles Apple Inc.’s iPhones has apologized for what it said was a technical error that led to protests by employees over payment of wages offered to attract them to a factory that is under anti-virus restrictions
3:15AM ( 1 hour ago )
After Russian retreat, Ukrainian military plans next move
Two weeks after retreating from the southern city of Kherson, Russia is pounding the territory across the Dnieper River with artillery
3:08AM ( 1 hour ago )