TOKYO– Global stocks were trading mixed Thursday after the Federal Reserve opted to keep its benchmark interest rate unchanged.
Stocks were mostly lower in early trading in Europe as leaders of the Group of Seven major industrialized nations met in Italy following European Parliament elections that saw a surge in support for the far right in countries like France and Germany.
The G7 summit running until Saturday will focus on global conflicts, the spread of artificial intelligence and African issues, including Italy’s long-standing concerns over uncontrolled immigration to the Europe and human traffickers. Recurring issues such as climate change and China were also on the agenda.
The French CAC 40 lost 0.4% at the start of the session to 7,834.47. Germany’s DAX fell 0.5% to 18,537.80. Britain’s FTSE 100 index fell 0.3% to 8,191.88. The future of the Dow Jones Industrial Average lost 0.3% while that of the S&The P 500 edged up 0.1%.
In Asia, investors turned their attention to a meeting of the Japanese central bank which ends on Friday. The Bank of Japan is not expected to raise its key rate this time, although the economy is under pressure from the dollar’s prolonged rise against the Japanese yen.
“Given the Fed’s recent hawkish behavior, if the BOJ were to stick to its usual dovish tone in terms of policy settings, this could pave the way for the US dollar to continue its upward trend against the Japanese yen , “Yes, Jun Rong, market analyst at IG, said in a comment.
In currency trading, the U.S. dollar rose slightly to 157.29 Japanese yen from 156.71 yen. The euro fell to $1.0809 from $1.0812.
Japan’s benchmark Nikkei 225 index fell 0.4% to end at 38,720.47. Australia S&The P/ASX 200 jumped 0.4% to 7,749.70. South Korea’s Kospi jumped 1.0% to 2,754.89. Hong Kong’s Hang Seng gained almost 1.0% to 18,112.63, while the Shanghai Composite fell 0.3% to 3,028.92.
As expected, the Federal Reserve kept its main interest rate unchanged on Wednesday following its latest policy meeting. And Treasury yields fell after an inflation report showed that U.S. consumers paid 3.3% higher prices last month for food, insurance and everything else compared to the previous month. ‘last year. Economists had expected an inflation rate stuck at 3.4%.
THE&The P 500 climbed 0.9%, adding to its all-time high set the day before. The Nasdaq Composite Index rose 1.5% and the Dow Jones slipped 0.1%.
Lower inflation helps U.S. households struggling to keep up with rapidly rising prices and also opens the door for the Federal Reserve to cut its main interest rate. Such a move would ease pressure on the economy and boost investment prices.
In energy trading Thursday morning, benchmark U.S. crude lost 21 cents to $78.29 a barrel. Brent crude, the international standard, fell 21 cents to $82.39 a barrel.
