World shares mixed after Trump announces on replacing Fed chief

US futures dropped while European shares opened higher on Friday after markets retreated in Asia ahead of a possible announcement by US President Donald Trump on his nominee to replace Jerome Powell as chair of the Federal Reserve.

Oil prices dropped and the prices of gold and silver weakened. The future for the S&P 500 sank 0.8 per cent while that for the Dow Jones Industrial Average was 0.7 per cent lower. Trump chose Powell to lead the US central bank in 2017 but has relentlessly assailed him for not cutting interest rates quickly as quickly as the president would like. The appointment to replace him must be confirmed by the Senate.

In early European trading, Germany’s DAX picked up 0.8 per cent to 24,506.41, while the CAC 40 in Paris advanced 0.4 per cent to 8,107.50. Britain’s FTSE 100 edged 0.2 per cent higher, to 10,189.05. The CEO of Indonesia’s stock market, Imam Rachman, resigned Friday “As part of a commitment toward recent market conditions,” the exchange said in an announcement. Jakarta’s benchmark gained 1.2 per cent following news of his resignation.

It had been trading at all-time highs but sank 7.4 per cent on Wednesday and 1.1 per cent on Thursday after MSCI, a US provider of global equity, fixed income and real estate indices, warned about market risks such as a lack of transparency. Chinese markets retreated, with the Hang Seng in Hong Kong shedding 2.1 per cent to 27,387.11.

Shares in major ports operator CK Hutchison Holdings dropped 4.6 per cent after Panama’s Supreme Court ruled that the concession held by a subsidiary to operate ports at either end of the Panama Canal was unconstitutional. That advanced a US effort to block any influence by China over the strategic waterway.

The Shanghai Composite index slipped 1 per cent to 4,117.95. Tokyo’s Nikkei 225 fell back, losing 0.1 per cent to 53,322.85 as stocks related to artificial intelligence declined. Testing equipment maker Advantest lost 4.5 per cent and computer chip equipment maker Disco Corp. lost 1.7 per cent. South Korea’s Kospi gave up most of its gains late in the session, edging just 0.1 per cent higher to 5,224.36 after the Yonhap News Agency reported that a first day of talks with US Commerce Secretary Howard Lutnick aimed at resolving trade tensions had not yielded an agreement. The talks are due to continue Friday.

Earlier this week, President Donald Trump said he planned to raise tariffs on South Korean exports if the US ally did not swiftly ratify a trade agreement worked out months ago. In Australia, the S&P/ASX 200 declined 0.7 per cent to 8,869.10. Taiwan’s benchmark lost 1.5 per cent, while India’s Sensex fell 0.3 per cent. On Thursday, US stocks finished with relatively modest moves. The S&P 500 slipped 0.1 per cent after flirting with its record high in the morning and dropping by as much as 1.5 per cent later in the day. The Dow Jones Industrial Average rose 0.1 per cent and the Nasdaq composite fell 0.7 per cent.

Investors will likely focus on the Fed and who is to lead it, though earnings are also a major driver of market activity this week.