Yuri Kageyama, Associated Press
14 minutes ago
Currency traders walk past a screen displaying the Korea Composite Stock Price Index (KOSPI) (left) and foreign exchange rates between the US dollar and the Korean won in the foreign exchange dealing room at the KEB Hana Bank headquarters in Seoul, South Korea on Wednesday. , April 17, 2024. (AP Photo/Ahn Young Jun)
TOKYO (AP) — Global stocks traded mixed Wednesday as hopes resurfaced that U.S. interest rates could remain high for some time.
France’s CAC40 rose 1.1% to 8,016.66 in early trade, while Germany’s DAX rose 0.5% to 17,854.58. Britain’s FTSE 100 index rose 0.5% to 7,861.43. US stocks turned higher, with Dow futures up 0.2% to 37,798.97. S&P 500 futures rose 0.3% to 5,106.75.
In Asia, Japan’s benchmark Nikkei stock average fell 1.3% to end at 37,961.80. Australia’s S&P/ASX 200 index fell nearly 0.1% to 7,605.60. South Korea’s Kospi fell nearly 1.0% to 2,584.18. Hong Kong’s Hang Seng Index was little changed, rising to 16,251.84, while the Shanghai Composite Index rose 2.1% to 3,071.38.
Federal Reserve Chairman Jerome Powell said at an event on Tuesday that the central bank first needs more confidence that inflation is sustainably falling toward negative territory, so the central bank remains at its highest level since 2001. Reaction was mixed after the bank said it was waiting to cut key interest rates. The goal is 2%.
IG market analyst Yep Jun Long said, “While Federal Reserve Chairman Jerome Powell is reviewing the timing of rate cuts, many Fed speakers are appealing for patience in easing. “The appetite for risk-taking remains weak.”
Chairman Powell indicated that if inflation continues to rise, the Fed will keep interest rates on hold “for as long as necessary.” But he acknowledged that the Fed could cut interest rates if the job market weakens unexpectedly.
Powell cited a series of reports this year that showed inflation remained higher than expected, saying, “Recent numbers clearly don’t give us a lot of confidence, and if anything, we don’t think we’ll achieve that confidence.” This suggests that it is likely to take longer than expected.”
Traders primarily expect the Fed to cut interest rates only once or twice this year, after expecting at least six rate cuts into 2024.
In energy trading, benchmark U.S. crude oil fell 35 cents to $85.01 a barrel. Brent crude, the international standard crude, fell 34 cents to $89.68 per barrel.
In currency trading, the US dollar depreciated slightly from 154.65 yen to 154.56 yen. The euro rose to $1.0644 from $1.0617.
