HONG KONG (AP) — European stocks fell in early trading Wednesday and Asian markets were mostly lower as U.S. stocks hit record highs.
The Dow Jones Industrial Average and the S&P 500 both fell 0.1%.
Britain’s FTSE 100 index fell 0.5 percent to 8,377.95 after the Office for National Statistics reported a higher-than-expected inflation figure, dashing hopes of a rate cut in June. Inflation fell to 2.3 percent in April from 3.2 percent in March, but remained above the Bank of England’s 2 percent target.
France’s CAC40 fell 0.4% in early trading to 8,107.40, while Germany’s DAX fell 0.2% to 18,686.15.
In Asia, the Nikkei Stock Average in Tokyo fell 0.9% to 38,617.10 yen after Japan announced last month that its trade deficit widened as higher import costs outweighed an 8% year-on-year increase in exports. became. The data was weaker than analysts expected.
Hong Kong’s Hang Seng Index fell 0.2% to 19,184.85, while the Shanghai Composite Index was little changed at 3,158.54.
In South Korea, the KOSPI was almost unchanged at 2,723.46. Australia’s S&P/ASX 200 fell 0.1% to 7,848.10.
Taiwan’s Tyex rose 1.5%, while market giant Taiwan Semiconductor Manufacturing Co.’s stock rose 2.7%.
Markets in Thailand were closed for the holiday.
On Tuesday, the S&P 500 rose 0.3% to 5,321.41, surpassing the all-time high it set last week. The Nasdaq Composite rose 0.2% to 16,832.62, a day after hitting a new record high. The Dow Jones Industrial Average rose 0.2% to $39,872.99, staying just below its high hit last week.
Stock indexes have recently risen to record highs on expectations that the Federal Reserve will lower interest rates this year as inflation subsides. A growing number of reports showing bigger-than-expected profits from major U.S. companies is also pushing stocks higher.
Interest rates on mortgages, credit cards and other payments are soaring as the Federal Reserve keeps key interest rates at the highest levels in more than 20 years. The Federal Reserve is trying to walk the tightrope of squeezing the economy with high interest rates just enough to keep high inflation at bay, but not so much that it triggers a painful recession.
There aren’t many top-tier economic reports this week, and the earnings reports are most likely to cause a sharp move in the market.
This week’s headliner is Nvidia, whose stock price has soared amid excitement over its artificial intelligence technology. The company is scheduled to release its latest quarterly results on Wednesday, and expectations are high.
Target also reports Thursday, followed by Ross Stores later in the day, which could provide more detail on how U.S. household spending is holding up. With inflation remaining high, pressures on customers are growing, with lower-income customers appearing to be the most affected.
Benchmark U.S. crude oil fell $1.04 to $77.62 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international benchmark, fell $1.25 to $81.63 a barrel.
The dollar rose to 156.42 yen from 156.16 yen. The euro rose to $1.0857 from $1.0854.
