Tokyo, Sep 10 (AP): Global shares mostly rose Wednesday, echoing record rallies on Wall Street after the latest update on the job market bolstered hopes the US Federal Reserve will cut interest rates.
France’s CAC 40 rose 0.8 per cent in early trading to 7,809.80. Germany’s DAX edged up 0.6 per cent to 23,856.74. Britain’s FTSE 100 rose 0.2 per cent to 9,263.14. US shares were set to be mixed, with Dow futures down 0.1 per cent at 45,700.00, while S&P 500 futures gained 0.3 per cent at 6,537.75.
Japan’s benchmark Nikkei 225 gained 0.9 per cent to finish at 43,837.67. Australia’s S&P/ASX 200 added 0.3 per cent to 8,830.40. South Korea’s Kospi jumped 1.7 per cent to 3,314.53.
Hong Kong’s Hang Seng rose 1.0 per cent to 26,200.26, while the Shanghai Composite edged up 0.1 per cent to 3,812.22. Uncertainty is still in the air over US-China tariff issues as bilateral talks continue.
US President Donald Trump has raised taxes on imports from China, triggering a tit-for-tat tariff war. The US is currently charging an additional 30 per cent tariff on Chinese goods, and China is charging a 10 per cent tariff under a de-escalation deal reached in May.
Investors are also watching for the US Federal Reserve to possibly cut its main interest rate for the first time this year at its next meeting in a week, in order to prop up the slowing job market. A report on Tuesday offered the latest signal of weakness, when the US government said its prior count of jobs across the country through March may have been too high by 911,000, or 0.6 per cent.
That was before President Donald Trump shocked the economy and financial markets in April by rolling out tariffs on countries worldwide.
The bet on Wall Street is that such data will convince Fed officials that the job market is the bigger problem now for the economy than the threat of inflation worsening because of Trump’s tariffs. That would push them to cut interest rates, a move that would give the economy a boost but could also send inflation higher.
“The broader narrative is increasingly anchored on expectations that the Fed will deliver a rate cut at next week’s meeting,” said Ahmad Assiri, research strategist at Pepperstone.
In energy trading, benchmark US crude added 58 cents to USD 63.21 a barrel. Brent crude, the international standard, rose 56 cents to USD 66.95 a barrel.
The rise in oil prices came amid the escalation of tensions in the Middle East. Israel struck the headquarters of Hamas’ political leadership in Qatar on Tuesday as the group’s top figures gathered to consider a US proposal for a ceasefire in the Gaza Strip.
In currency trading, the US dollar inched up to 147.53 Japanese yen from 147.37 yen. The euro fell to USD 1.1695 from USD 1.1714. (AP) SKS SKS
Category: Breaking News
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