Stock market today: Global shares mostly rise cheered by Wall Street finish

TOKYO (AP) — Global stocks mostly rose Thursday amid expectations of more U.S. interest rate cuts this year.

France's CAC 40 added 0.4% in early trading to 8,184.47, while Germany's DAX rose 0.3% to 18,413.33. Britain's FTSE 100 rose 0.4% to 7,967.83. US stocks were expected to rise with Dow futures rising 0.2% to 39,576.00. S&P 500 futures rose 0.3% to 5,281.25.

Japan's benchmark Nikkei 225 index rose 0.8% to 39,773.14. Sydney's S&P/ASX 200 rose 0.5% to 7,817.30. South Korea's Kospi added 1.3% to 2,742.00.

Analysts say Taiwan Semiconductor Manufacturing Co (TSMC) facilities may receive help faster than expected, easing concerns about production disruptions, after a powerful earthquake struck on Wednesday, killing at least nine people. Trade was closed in Taiwan, as well as in China, for a national holiday.

"Market participants took comfort from the weaker-than-expected overnight U.S. Services Purchasing Managers' Index, which offset the surprising rebound in manufacturing activities earlier in the week and suggests that demand can still be kept contained for the Fed's fight against inflation," Yeap said. Jun Rong, market analyst at IG.

Stock prices were also boosted by a recent report from Japan's main union, Rengo, or Confederation of Japanese Trade Unions, that wage increases remained strong in negotiations this year, with an average increase of more than 5%, the highest in three decades.

The Federal Reserve has indicated it could still cut its main interest rate three times this year, easing pressure on the economy. But Fed officials say they will do so only if more evidence comes showing that inflation is heading toward its 2% target.

A more complete report on the March labor market from the U.S. government will arrive on Friday, and will likely be the week's top economic data.

Traders have already sharply lowered their expectations for how many times the Federal Reserve will cut interest rates this year, cutting them in half from a forecast of six at the beginning of the year. That has them on the same page as Federal Reserve officials generally. However, some investors are preparing for two or even zero cuts this year because the Federal Reserve may not want to start lowering rates too close to the November election for fear of appearing political.

In energy trading, benchmark U.S. crude fell 34 cents to $85.09 a barrel. Brent crude, the international standard, fell 32 cents to $89.03 a barrel.

In currency trading, the US dollar rose to 151.74 Japanese yen from 151.65 yen. The euro was worth $1.0859, down from $1.0837.

__

AP Business Writer Stan Choe contributed to this report.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *