Stock Markets Mixed As Traders Eye High Interest Rates For Longer
Ijaz Ahmad Published September 22, 2023 | 11:32 PM
Global stock markets diverged Friday as investors contemplated central bank signals that interest rates will remain high to combat stubborn inflation
London, (UrduPoint / UrduPoint / Pakistan Point News - 22th Sep, 2023 ) :Global stock markets diverged Friday as investors contemplated central bank signals that interest rates will remain high to combat stubborn inflation.
Wall Street edged higher following Thursday's tumble over fears of a US government shutdown and the Federal Reserve's warning that borrowing costs would stay elevated for some time even as it paused its hike cycle.
The broad-based S&P 500 gained at the open, as did the tech-rich Nasdaq Composite Index, while the Dow Jones Industrial Average made gains by late morning trading after opening lower.
Briefing.com analyst Patrick O'Hare said some indices were up as investors snatched cheaper stocks but warned that it was unlikely to prevent a "losing week" for Wall Street.
"The specter of higher rates has cast concerns about a slowdown in borrowing, a slowdown in consumer spending, a slowdown in earnings growth," O'Hare wrote.
A number of Fed policymakers have said they are confident the United States can avoid a recession even as they push rates to two-decade highs.
The Bank of England (BoE) on Thursday also decided against hiking its interest rate for a 15th time in a row, leaving it at 5.25 percent, the highest level since 2008.
"The no action is quite premature," Ipek Ozkardeskaya of Swissquote said.
London's stock market rose Friday but the British pound dipped against the Dollar.
"Whatever the Brits will import from now will cost them more than during the last months, when the pound was appreciating," Ozkardeskaya said, adding that another rate hike is likely on the horizon.
Major eurozone indices closed lower, however, as a key survey showed eurozone economic activity shrank further in September but at a slower rate.
UK data revealed retail sales had rebounded in August, offsetting news that contraction in the country's private sector had picked up speed this month.
In Asia on Friday, the Bank of Japan stuck to its long-term programme of sub-zero borrowing costs.
It comes as BoJ officials face increasing pressure to turn more hawkish as the Yen weakens and after fresh data showed inflation remains stubbornly high.
Among individual stocks, microsoft shares rose after UK regulators dropped their objections to its $69-billion takeover bid for Call of Duty" video-game maker Activision Blizzard.
The US tech titan launched its bid early last year, seeking to establish the world's third biggest gaming firm by revenue after China's Tencent and Japan's PlayStation maker Sony.
- Key figures around 1540 GMT -
New York - Dow: UP 0.2 percent at 34,136.45 points
London - FTSE 100: UP 0.1 percent at 7,683.91 (close)
Frankfurt - DAX: DOWN 0.1 percent at 15,557.29 (close)
Paris - CAC 40: DOWN 0.4 percent at 7,184.82 (close)
EURO STOXX 50: DOWN 0.1 percent at 4,207.16 (close)
Tokyo - Nikkei 225: DOWN 0.5 percent at 32,402.41 (close)
Hong Kong - Hang Seng Index: UP 2.3 percent at 18,057.45 (close)
Shanghai - Composite: UP 1.6 percent at 3,132.43 (close)
Euro/dollar: UP at $1.0662 from $1.0661 on Thursday
Pound/dollar: DOWN at $1.2267 from $1.2292
Dollar/yen: UP at 148.20 yen from 147.57 yen
Euro/pound: UP at 86.91 pence from 86.71 pence
Brent North Sea crude: UP 0.3 percent at $93.56 per barrel
West Texas Intermediate: UP 0.4 percent at $90.01 per barrel
Related Topics
Recent Stories
London, Frankfurt stocks hit record highs on rate-cut hopes
May 9 culprits must be brought to logical end: Hanif Abbasi
Sanchez escapes through dust and gravel for nervy Giro triumph
Balochistan Assembly passes resolution to condemn May 9 attacks
Spain govt vows to block hostile BBVA bid for rival bank
NADRA holds open court to resolve public issues in Quetta
In south Brazil, race on to deliver aid ahead of new storms
Appeals against cipher case verdict adjourned till May 15
PIPS collaborates with CfP to enhance technological, educational infrastructure
China launches new satellite
Incidents of misbehavior with patrolling officers are unacceptable: IG NH&MP
Police arrests drug supplier, recover mainpuri
More Stories From Business
-
Spain govt vows to block hostile BBVA bid for rival bank
6 hours ago -
Tajir Dost Scheme aims at broadening tax-base: Federal Minister for Finance and Revenue, Muhammad Au ..
6 hours ago -
ICCI organize ceremony to express solidarity with Armed Forces of Pakistan
7 hours ago -
Habib Arif posted as MD SIDB KP
7 hours ago -
Finance minister highlights economy-stabilizing efforts
7 hours ago -
Call for Tobacco Tax Increase to Safeguard Child Rights and Public Health
8 hours ago
-
IPAK to raise Rs. 1.77b in book building process
7 hours ago -
Spanish bank BBVA goes hostile in Sabadell takeover bid
7 hours ago -
Pakistan's total liquid foreign reserves surge over $ 14.45 billion
7 hours ago -
Federal Minister for Economic Affairs, Ahad Khan Cheema chairs meeting with EDCF, Country Programme ..
9 hours ago -
London, Frankfurt stocks hit record highs on rate-cut hopes
10 hours ago -
Joint efforts imperative to address agriculture sector issues: minister
9 hours ago