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Global Shares Mostly Higher Wednesday 11/30 05:15
Global shares were mostly higher on Wednesday, ahead of a closely watched
speech by the Federal Reserve chief that may give clues about future interest
rate hikes.
TOKYO (AP) -- Global shares were mostly higher on Wednesday, ahead of a
closely watched speech by the Federal Reserve chief that may give clues about
future interest rate hikes.
Investors were also eyeing developments in China, where protests have
erupted over the "zero-COVID" strategy that has confined millions of people to
their homes, sometimes for months.
France's CAC 40 added 0.6% in early trading to 6,707.52, while Germany's DAX
gained 0.7% to 14,454.72. Britain's FTSE 100 advanced nearly 0.4% at 7,536.51.
The future for the S&P 500 was up 0.2% while that for the Dow industrials
gained 0.1%.
China has eased some controls after demonstrations in at least eight
mainland cities and Hong Kong. It's unclear if protests will start up again
after authorities detained an unknown number of people and stepped up
surveillance.
Renewed restrictions on businesses and other activity have hit
manufacturing, with an official survey announced Wednesday showing the
purchasing managers index falling to 48.0 in November from 49.2 the month
before. The index is on a scale of 0 to 100 where readings 50 and above show
expansion.
"A further fall in the new orders and new export orders indices suggests
this was largely driven by weakening domestic and foreign demand," Capital
Economics said in a report. "Todays surveys suggest that intensified virus
disruption has delivered another blow to the economy this month."
Japan's benchmark Nikkei 225 lost 0.2% to finish at 27,968.99 after reports
said industrial production contracted 2.6% in October, compared with 1.7% in
September, amid weakening demand from China and other world markets.
But other regional markets advanced.
Hong Kong's Hang Seng added 2.1% to 18,584.49. The Shanghai Composite index
inched up less than 0.1% to 3,151.34. Australia's S&P/ASX 200 rose 0.4% to
7,284.20, while South Korea's Kospi rose 1.6% to 2,472.53.
"Due to a more reflective approach to the recent zero-COVID measures,
Chinese stocks have taken substantial leaps and bounds this week. However, that
optimism is giving way to hawkish contemplation as traders twiddle their thumbs
awaiting a speech from Federal Reserve Chair Jerome Powell later Wednesday,"
Stephen Innes, a managing partner at SPI Asset Management, said in a report.
Investors have been hoping that the Fed will slow the scale and pace of its
interest rate hikes and are closely watching the latest data on inflation,
consumer spending and the employment market. They'll be looking for any signs
of a shift in policy when Powell speaks at the Brookings Institution about the
outlook for the U.S. economy and the labor market on Wednesday.
The Fed's benchmark rate currently stands at 3.75% to 4%, up from close to
zero in March.
The U.S. government will be releasing several reports about the labor market
this week. A report about job openings and labor turnover for October will be
released Wednesday, followed by a weekly unemployment claims report Thursday.
The closely watched monthly report on the job market will be released on Friday.
In energy trading, benchmark U.S. crude gained 49 cents to $78.69 a barrel.
Brent crude, the international standard, added 70 cents to $83.70 a barrel.
In currency trading, the U.S. dollar rose to 138.76 Japanese yen from 138.65
yen. The euro cost $1.0346, up from $1.0331.
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