BANGKOK (AP) — Global stocks were mostly higher on Wednesday ahead of the Federal Reserve’s interest rate decision and an update on the prices U.S. consumers will pay.
Germany’s DAX index rose 0.6% to 18,483.59, while Paris’ CAC 40 index rose 0.5% to 7,824.86.
In London, the FTSE 100 rose 0.7 percent to 8,203.27.
Futures for the S&P 500 and Dow Jones Industrial Average rose less than 0.1%.
In Asian markets, Tokyo’s Nikkei stock average fell 0.7 percent to 38,876.71.
Rising inflation and falling wages in Japan have raised questions about how the central bank can move away from its zero interest rate policy. The Bank of Japan is due to announce its policy decision on Friday. In March, the bank raised its policy rate from minus 0.1 percent to a range of zero to 0.1 percent, its first rate hike in 17 years.
The government said on Wednesday that producer prices rose 2.4% in May as the yen’s weakness against the U.S. dollar raised the cost of importing fuel and manufacturing parts. At the same time, the latest data showed that real wages, adjusted for inflation, fell for the 25th consecutive month in April.
The concern is that the Bank of Japan may refrain from raising interest rates out of fear that rising prices will curb consumer spending and have a negative impact on the broader economy.
Elsewhere in Asia, Hong Kong’s Hang Seng Index fell 1.3 percent to 17,947.88, while the Shanghai Composite Index rose 0.3 percent to 3,037.47.
Australia’s S&P/ASX 200 fell 0.5 percent to 7,715.50. In Bangkok, the SET was flat.
In South Korea, tech stocks rallied, helping lift stock prices, with the KOSPI rising 0.8% to 2,728.17. In Taiwan, the Taiex rose 1.2%.
Wall Street was in weak trading on Tuesday ahead of a key inflation report and Federal Reserve policy decision, but the S&P 500 and Nasdaq Composite both hit record highs.
The S&P 500 rose 0.3% to 5,375.32, led by gains in technology stocks. The tech-heavy Nasdaq Composite Index rose 0.9% to 17,343.55. Both indexes hit record highs for the second straight day.
Apple shares surged 7.3% after the company highlighted its efforts in artificial intelligence technology.
The Dow Jones Industrial Average underperformed the market, losing 0.3% to 38,747.42.
Late on Wednesday, the government will release the latest data on consumer-level inflation and the Federal Reserve will wrap up its policy meeting. The U.S. is also due to release the latest data on wholesale prices on Thursday.
Wall Street expects the government’s Consumer Price Index to remain unchanged at 3.4% in May. Inflation as measured by the CPI appears to be hovering around 3%, though that’s down significantly from a peak of 9.1% in 2022. That makes it harder for the Fed to achieve its goal of pushing inflation back to its 2% target.
The Fed has kept its key interest rate at its highest level in more than two decades, and Wall Street expects one or two rate cuts this year. Few expect the central bank to change its key rate at its meeting, which began on Tuesday. Policymakers are due to release their latest forecasts for interest rates and the economy on Wednesday.
Recent economic data has been mixed, with traders hoping for a moderate slowdown without a recession.
The economy remains resilient, supported by a strong job market and consumer spending. Consumers, especially those on lower incomes, are feeling increasingly stressed, and retailers are warning investors about the potential impact on revenues and incomes. The U.S. job market is showing signs of cooling, which may ease inflation but increase consumer stress.
In other trading early Wednesday, benchmark U.S. crude rose 56 cents to $78.46 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, rose 43 cents to $82.35 a barrel.
The U.S. dollar rose to 157.27 yen from 157.14 yen. The euro rose to 1.0748 dollars from 1.0740 dollars.
