European shares rose after most Asian markets fell on Wednesday, while Tokyo’s Nikkei average closed at a record high.
Investors are waiting to hear Federal Reserve Chairman Jerome Powell speak before a congressional committee and are keeping a close eye on earnings reports.
Germany’s DAX rose 0.2% to 18,280.58 and Paris’ CAC 40 was little changed at 7,510.64. In London, the FTSE 100 rose 0.3% to 8,166.49.
S&P 500 futures rose 0.1%, while the Dow Jones Industrial Average fell 0.1%.
In Asia, Japan’s stock index rose 0.6 percent to close at 41,831.99, after closing at a record high on Tuesday and hitting an intraday record high of 41,889.16 on Wednesday.
The Nikkei stock average has risen nearly 30% over the past year and 5% over the past three months.
Investors are buying up technology stocks amid growing enthusiasm about the potential of artificial intelligence, and export-oriented companies are also reaping big gains as the Japanese yen’s weakness against the U.S. dollar has boosted profits.
In Hong Kong, the Hang Seng Index fell 0.2% to 17,479.12, while the Shanghai Composite Index rose 0.7% to 2,939.36.
China reported that its consumer price index fell to 0.2% in June from 0.3% in May, weaker than expected due mainly to lower food prices other than pork.
“Weak consumer confidence continues to push spending towards better value for money purchases, while competition in the EV sector continues to drive down prices, keeping overall inflation in check,” Lin Song of ING Economics said in a commentary.
Australia’s S&P/ASX 200 fell 0.2% to 7,816.80.
In Seoul, the KOSPI was little changed at 2,867.99. Taiwan’s Taiex rose 0.5% and India’s Sensex fell 0.7%.
On Tuesday, the S&P 500 and Nasdaq Composite Index each rose 0.1%, hitting all-time highs for the second time this week. The Dow was down 0.1%.
Stocks have risen steadily in recent months, with the S&P 500 index hitting 36 new records so far this year.
In testimony before the Senate Banking Committee on Tuesday, Fed Chairman Powell has repeatedly Inflation has eased While rates have risen especially over the past two years, they remain above the central bank’s 2% target. He said there was a risk that the Fed would move too late to cut rates or cut them too little, warning that either scenario could result in a weakening of the economy and job market.
Powell is scheduled to testify before the House Financial Services Committee later Wednesday.
Wall Street expects consumer prices to have fallen to 3.1% in June from 3.3% in May when it releases data on Thursday. Wholesale-level inflation, before costs are passed on to consumers, is due to be released on Friday.
Traders still expect there’s a 70% chance the central bank will cut its key interest rate as early as September, according to CME Group data.
The Fed remains cautious about raising interest rates, keeping its benchmark interest rate at its highest level in more than two decades as it closely monitors for further signs that inflation remains subdued.
Delta Air Lines is scheduled to report results on Thursday during its earnings report this week.
Updates from JPMorgan, Citigroup and Wells Fargo are due on Friday, which could provide more information on consumer debt levels and whether banks are concerned about possible payments or defaults.
Benchmark U.S. crude oil fell 46 cents to $80.95 a barrel in electronic trading on the New York Mercantile Exchange early Wednesday.
Brent crude, the international standard, fell 53 cents to $84.13 a barrel.
The U.S. dollar rose to 161.40 yen from 161.34 yen. The euro rose to 1.0824 dollars from 1.0813 dollars.
