Global stocks turn sluggish as rate cut hopes fading
Seoul, Tokyo, Shanghai and Hong Kong settled lower; European markets were trading with cuts; Wall Street ended in negative territory on Thursday
Berlin: Shares retreated in Europe and Asia on Friday after unexpectedly strong reports on the US economy raised the possibility of interest rates staying painfully high. US futures edged higher, while oil prices fell back. In early European trading, Germany’s DAX lost 0.6 per cent to 18,638.00, while the CAC 40 in Paris gave up 0.4 per cent to 8,071.23. Britain’s FTSE 100 shed 0.5 per cent to 8,301.27.
The futures for the S&P 500 and the Dow Jones Industrial Average edged 0.1 per cent higher. Japan’s Nikkei 225 index lost 1.2 per cent to 38,646.11 after the government reported that core inflation excluding volatile food and energy prices was at 2.2 per cent in April, lower than forecast.
Analysts said that suggested less pressure on the Bank of Japan to raise interest rates. “In fact, in seasonally-adjusted terms, consumer prices excluding fresh food and energy have now held steady for two consecutive months.