TOKYO (AP) — Global stocks were mixed Wednesday as disappointingly high U.S. inflation data sent stocks down on Wall Street and raised expectations that interest rates will remain high for an extended period. Ta.
France’s CAC40 rose nearly 0.2% to 7,637.28 in early trade, while Germany’s DAX rose 0.1% to 16,891.35. Britain’s FTSE 100 index rose 0.5% to 7,547.62.
The S&P 500 futures index rose 0.2% and the Dow Jones Industrial Average futures index rose 0.1%.
Market watchers were closely watching the outcome of the presidential election in Indonesia, one of Southeast Asia’s largest economies and a supplier of strategically important resources such as nickel.
Hong Kong’s Hang Seng index resumed trading after the Lunar New Year holiday, rising 0.8% to 15,879.38 after opening lower. Markets in mainland China will remain closed this week.
Japan’s benchmark Nikkei Stock Average fell 0.7% to 37,703.32. Australia’s S&P/ASX 200 index fell 0.7% to 7,574.70. South Korea’s Kospi fell 1.1% to 2,620.42.
India’s Sensex rose 0.2%, while Bangkok’s SET fell 0.6%.
The Consumer Price Index rose 0.3% from December to January, up from a 0.2% rise the previous month, according to a report released Tuesday by the Labor Department. Compared to a year ago, prices increased by 3.1%.
Even after the surprising inflation report, the U.S. economy still lands perfectly, avoiding a painful recession as inflation cools, according to Alexandra Wilson Elizondo, co-chief investment officer of the Multi-Asset Solutions business. That is the most likely outcome. Goldman Sachs Asset Management.
But he said there was still a risk that the economy could slide into recession under the weight of high interest rates, or that inflation could pick up again.
Fed officials said they plan to cut interest rates three times this year as they hope inflation will fall toward its 2% target from a peak of more than 9% two summers ago. Traders had previously expected up to six rate cuts in 2024, but are now betting big on three or four cuts.
In other trading, benchmark U.S. crude oil fell 4 cents to $77.83 a barrel. Brent crude, the international standard crude, rose 2 cents to $82.79 per barrel.
The dollar remained above 150 yen, falling from 150.86 yen to 150.59 yen. In other currency transactions, the euro was at $1.0700, little changed from $1.0712.
Yuri Kageyama, Associated Press
