Global stocks higher ahead of US Fed chairman's speech

Screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rates are seen at the foreign exchange dealing room in Seoul, South Korea, Friday, Aug. 23, 2019. Asian stock markets were mixed on Friday after Wall Street declined ahead of a closely watched speech by the U.S. Federal Reserve chairman. (AP Photo/Lee Jin-man)

Global stocks rise after Wall Street declines ahead of closely watched speech by US Fed chairman

BEIJING — Global stock markets rose Friday after Wall Street declined ahead of a closely watched speech by the U.S. Federal Reserve chairman.

Market benchmarks in London, Frankfurt, Shanghai and Tokyo all advanced.

Investors are looking to Jerome Powell's speech Friday for signs of direction on interest rates after two regional Fed presidents said they see no need for a change.

Investors expect a cut in September, the Fed's second in three months, to shore up U.S. economic growth amid a tariff war with Beijing and weakening global growth.

"Markets seem very clearly positioned for some very dovish guidance from Mr. Powell," Jeffrey Halley of Oanda said in a report. "It is a dangerous assumption to make."

In early trading, London's FTSE 100 rose 0.7% to 7,180.45 and Frankfurt's Dax climbed 0.5% to 11,799.63. France's CAC-40 gained 0.4% to 5,413.13.

In Asia, Tokyo's Nikkei 225 climbed 0.4 % to 20,710.91 and the Shanghai Composite Index rose 0.5% to 2,897.43. Hong Kong's Hang Seng climbed 0.5% to 26,179.33.

Sydney's S&P-ASX 200 was up 0.3% at 6,523.10 and South Korea's Kospi was flat at 1,948.30. India's Sensex gained 0.6% to 36,683.32.

New Zealand and Taiwan were up and Southeast Asian markets were down.

On Wall Street, the futures for the Standard & Poor's 500 index gained 0.4% and the futures for the Dow Jones Industrial Average added 0.3%.

On Thursday, U.S. stocks gave up early gains and wavered through much of the day before closing mostly lower.

The S&P 500 index fell 0.1% to 2,922.95.

A pickup for Boeing helped drive the Dow Jones average higher. The Dow gained 0.2%, to 26,252.24.

The Nasdaq dropped 0.4% to 7,991.39.

Losses by health care, technology and energy companies, among other sectors, outweighed gains by banks, consumer goods makers and elsewhere in the market. Bond prices fell, nudging yields higher.

Minutes from the Fed's July meeting released Wednesday provided little clarity on the future course for rates.

Esther George, president of the Fed's Kansas City regional bank, and Philadelphia Fed President Patrick Harker said in televised interviews they see no need for another rate cut.

George and Eric Rosengren, president of the Boston Fed, dissented from the 8-2 rate cut vote, arguing that they favored no rate cut at all.

Investors predict a 91.2% likelihood the Fed will cut its benchmark rate by a quarter-point next month, according to the CME Group, which tracks investor bets. That is down from 98.5% the day before.

Investors worried that uncertainty over the U.S.'s escalating trade war with China could cause the economy to stumble, hurting corporate profits.

The Trump administration has imposed a 25% tariff on $250 billion in Chinese products. A pending 10% tariff on another $300 billion in goods would hit everything from toys to clothing and shoes that China ships to the United States. Some 60% of the new tariffs were postponed to mid-December and others taken off the table altogether.

ENERGY: Benchmark U.S. crude gained 3 cents to $55.38 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 33 cents on Thursday to close at $55.35. Brent crude, used to price international oils, advanced 5 cents to $59.97 in London. It shed 38 cents the previous session to $59.92.

CURRENCY: The dollar rose to 106.62 yen from Thursday's 106.42 yen. The euro slipped to $1.1070 from $1.1082.

Related News

China ratifies Paris climate deal ahead of G-20 summit

Sep 3, 2016

China announced on Saturday that it would formally enter the emissions-cutting agreement reached...

Hailing cooperation, US and China join global climate deal

Sep 3, 2016

President Barack Obama and China's President Xi Jinping on Saturday sealed their nations'...

US, Russia close on Syria deal, but Obama says not there yet

Sep 4, 2016

President Barack Obama says the United States and Russia are working "around the clock" to try to...

Bumpy beginning for Obama in China, starting on the tarmac

Sep 4, 2016

If President Barack Obama was hoping for a graceful start to his final trip to Asia as commander in...

Hong Kong election highlights rising anti-China mood

Sep 4, 2016

Polls opened in Hong Kong Sunday for the specially administered Chinese city's most crucial...

Britain's May seeks out new trading relations post-Brexit

Sep 4, 2016

British Prime Minister Theresa May says she intends to seize new trading opportunities for a...

Oriental News Today delivers breaking news and deep engaging content in Asia. It’s the only source you need for the latest Asia news.

Contact us: sales[at]orientalnewstoday.com