MANILA, Philippines (AP) — World shares were mixed on Friday after Wall Street fell to a fifth straight loss, hurt by losses for Walmart and worries over coming cuts to interest rates.
Traders remain cautious, looking for cues about U.S. monetary policy from a meeting of central bankers in Jackson Hole, Wyoming, where Federal Reserve chair Jerome Powell is due to speak on Friday
The future for the S&P 500 added less than 0.1%, while that for the Dow Jones Industrial Average rose 0.1%.
In early European
trading, Germany's DAX added less than 0.1% to 24,295.57, while Britain's FTSE 100 fell 0.1% to 9,302.00. In Paris, the CAC 40 added 0.1% to 7,946.47.
In Tokyo, the Nikkei 225 rose 0.1% to 42,633.29 after Japan’s core inflation rate slowed to 3.1% in July, from 3.3% in June.
ING Economics, in a commentary, said the rate was broadly in line with market consensus. Inflation staying above 3% raises chances of a rate hike as soon as October, it said.
In Chinese markets, Hong Kong's Hang Seng index rose 0.8% to 25,312.62. The Shanghai composite index climbed 1.5% to 3,825.76.
South Korea's Kospi added 0.9% to 3,168.73. Australia's S&P/ASX 200 fell 0.6% to 8,967.40 as traders sold to lock in gains after the benchmark surged to record highs in recent trading sessions.
Taiwan's TAIEX lost 0.8% and India's BSE Sensex edged 0.6% lower.
Expectations for a rate cut by the Fed have been dialed back as central bank officials stress concerns over inflation, Mizuho Bank said in a commentary.
“The upshot is that the sands are arguably shifting, but Jackson Hole may not be where lingering hawkish restraint goes to die,” it said. “In other words, Powell may stick to his guns on (interim) restraint.”
On Wall Street on Thursday, the S&P 500 slipped 0.4% to 6,370.17. Its losses have been relatively modest, but it has not closed higher since setting a record on Aug. 14. The Dow Jones Industrial Average dropped 0.3% to 44,875.50, and the Nasdaq composite fell 0.3% to 21,100.31.
Walmart was one of the market’s heaviest weights. It dropped 4.5% after reporting a profit for the spring that fell short of analysts’ expectations, while Nvidia and other Big Tech stocks held a bit steadier following two days of sharp swings.
The moves were stronger in the bond market, where Treasury yields rose after a report forced Wall Street to scale back hopes that the Federal Reserve may soon deliver relief by cutting interest rates.
A cut in interest rates would be the first of the year, and it would give investment prices and the economy a boost by potentially making it cheaper to borrow to buy cars or equipment. But it could also risk worsening inflation.
The Fed has been hesitant to cut interest rates this year out of fear that President Donald Trump’s tariffs could push inflation higher, but a surprisingly weak report on job growth earlier this month suddenly made the job market a bigger worry. Trump, meanwhile, has angrily pushed for cuts to interest rates, often insulting Powell while doing so.
In other dealings early Friday, U.S. benchmark crude gained 17 cents to $63.69 per barrel. Brent crude, the international standard, shed 2 cents to $66.64 per barrel.
The U.S. dollar rose to 148.56 Japanese yen, from 148.37 yen. The euro slipped to $1.1600 from $1.1606.
