Global stocks were mostly lower on Friday, but Chinese stocks reversed earlier losses following the announcement. new measures The aim is to revive the sluggish real estate market.
U.S. futures prices were little changed, and the Dow Jones Industrial Average was filled. nearly 40,000 after surpassing that level for the first time on Thursday.
In early European trading, Germany’s DAX fell 0.5% to 18,648.35, while Paris’ CAC40 index fell 0.5% to 8,147.13. Britain’s FTSE 100 index fell 0.3% to 8,413.99.
The People’s Bank of China on Friday announced reductions in required down payments for home loans and lower interest rates for first and second home purchases. The announcement came after authorities in Beijing reported continued weakness in the economy, particularly in the real estate industry.
The government was scheduled to hold a press conference on real estate policy later on Friday.
Hong Kong’s Hang Seng Index rose 1.1% to 19,591.29, while the Shanghai Composite Index also rose 1% to 3,154.03.
The biggest winners were real estate developers.
Shares in China Evergrande Group, the world’s most indebted developer with more than $300 billion in debt, soared nearly 18%, while fellow real estate conglomerate China Vanke rose 19.6%. did.
But while new efforts to get property sales back on track have been welcomed in China, accelerating growth will put upward pressure on commodity prices, slowing efforts to curb inflation in other parts of the world. That’s a possibility, Swissquote’s Ipek Ozkardeskaya said.
“While China’s growth will primarily be driven by strong government support for industrial production rather than improved consumer-based demand, the question of who will drive growth for global commodity prices remains to be seen,” he said in a commentary. is not very important.”
In Tokyo, the Nikkei Stock Average fell 0.3% to $38,787.38, while Australia’s S&P/Australian Stock Exchange 200 Index fell 0.9% to $7,814.40.
South Korea’s Kospi fell 1% to 2,724.62.
On Thursday, the Dow Jones Industrial Average fell 0.1% to 39,869.38 after breaking above 40,000. The S&P 500 index, which is more widely followed on Wall Street, fell 0.2%, and the Nasdaq Composite Index fell 0.3%. All three companies had soared to record highs on Wednesday.
GameStop and AMC Entertainment fell for the second day in a row. The start of an amazing week. GameStop is down 30%, but is still up nearly 59% for the week so far. AMC Entertainment fell 15.3%.
Those declines helped offset Walmart’s 7% increase. reported better profits The latest quarter beat analysts’ expectations. The company also said that this year’s sales could exceed the previously indicated range of expectations.
Walmart’s strength could be an encouraging signal for the broader economy. There are growing concerns about whether American households, especially low-income households, can sustain high levels of inflation and high credit card payments. lower end of income range.
Chubb has since risen 4.7%. Warren Buffett’s Berkshire Hathaway revealed They were building ownership of the insurance company.
The better-than-expected profit report was one of the main reasons why U.S. stock indexes rose broadly to record highs in May after a difficult April. There is also renewed hope that the US Federal Reserve could cut its key interest rates at least once this year. The Fed is keeping the federal funds rate at the highest level in more than 20 years.
The worst situation that exceeded expectations continued. Report on inflation The possibility of such cuts was in jeopardy earlier this year, but some More encouraging data ever since it arrived.
One report on Thursday showed a little more worker filed for unemployment Last week’s profits beat economists’ expectations, but the numbers are still low compared to the past. Some also believe that manufacturing growth in the Mid-Atlantic region has been weaker than expected, causing import prices to rise more than expected.
In other trading early Friday, benchmark U.S. crude oil rose 20 cents to $79.43 a barrel. Brent crude, the international standard, added 34 cents to $83.61 per barrel.
The dollar rose to 155.83 yen from 155.40 yen. The euro fell to $1.0855 from $1.0868.
