Global shares trade mixed as ahead of Fed decision

Tokyo: Global shares were trading mixed, as markets looked ahead to a possible move by the US Federal Reserve later this week to cut interest rates.

France’s CAC 40 jumped 1.2 per cent in early trading to 7,915.30, while the German DAX gained 0.6 per cent to 23,838.03. Britain’s FTSE 100 was little changed, inching down less than 0.1 per cent to 9,282.51. US shares were set to drift higher with Dow futures gaining 0.2 per cent to 46,287.00. S&P 500 futures rose nearly 0.1 per cent to 6,650.50.

In Asia, Hong Kong’s Hang Seng added 0.2 per cent to 26,446.56. The Shanghai Composite edged down 0.3 per cent to 3,860.50. Worries are simmering about China’s economy, as analysts say the data for August aren’t strong enough to reflect ongoing dynamic growth, especially given the damage from US President Donald Trump’s tariff policies.

“China’s economy continued to slide in August, with all key activity readings falling short of market forecasts once more,” Lynn Song of ING Economics said in a report.

“Given the slowdown of the past few months, we expect that there’s a strong case for additional short-term stimulus efforts,” China’s retail sales rose 3.4 per cent, a 12-month low that was down from 5.7 per cent in July and 6.8 per cent in June. Retail sales rose 3.4 per cent, the slowest pace since last November.