Global Stocks are Mixed as Data Show China's Economy Slowing Further
HONG KONG (AP) -- Global stocks were mixed on Monday after U.S. stocks finished their best week of the year, approaching record levels. The dollar dipped below 140 yen.
France's CAC 40 rose 0.1% to 7,473.37, while Germany's DAX lost 0.3% to 18,638.46. Britain's FTSE 100 edged 0.1% lower to 8,268.12 ahead of a meeting of the Bank of England's on Thursday.
The futures for the S&P 500 and the Dow Jones Industrial Average were both 0.1% higher.
In Asian trading, Hong Kong's Hang Seng swung between gains and losses during the day. closing 0.3% higher at 17,422.12 after data released over the weekend showed China's economy slowed further in August. Factory output, retail sales, and investment failed to meet expectations. Meanwhile, the unemployment rate unexpectedly surged to a six-month high, adding to challenges.
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"The drums of a deepening economic slowdown are beating louder, and it's time for China's leadership to decide whether to step up or risk sliding further into stagnation," Stephen Innes of SPI Asset Management said in a commentary.
Australia's S&P/ASX 200 added 0.3% to 8,121.60.
Markets in Japan, mainland China and South Korea were closed for holidays.
Investors will also be closely watching the Federal Reserve's policy meeting on Tuesday and Wednesday, when the central bank is expected to announce its first interest rate cut since 2020. The Bank of Japan's is expected to leave rates unchanged in a meeting that ends Thursday.
In currency trading, the Japanese yen strengthened against the U.S. dollar, which fell to 139.81 yen from 140.82 yen. The euro cost $1.1122, inching up from $1.1076.
On Friday, the S&P 500 rose 0.5% for a fifth straight gain. It is just 0.7% below its all-time high set in July. Rallies for Microsoft, Broadcom and other big technology stocks helped it claw back almost all its recent losses, the worst in nearly 18 months.
The Dow Jones Industrial Average jumped 0.7% and the Nasdaq composite added 0.7%.
Stocks also got support from the bond market, where Treasury yields eased ahead of the Fed's meeting. The unanimous expectation on Wall Street is for the Fed to deliver the first cut to interest rates in more than four years on Wednesday, and traders are rekindling hopes it may offer bigger-than-usual relief.
The Federal Reserve has been keeping its main interest rate at a two-decade high to slow the economy enough to stifle high inflation. With inflation having eased substantially from its peak two summers ago, the Fed has said it can focus more on bolstering the slowing job market and economy.
The Fed faces a balancing act in cutting rates. Lowering them relieves pressure on the economy but can also fuel more inflation. Reports earlier this week showed some underlying upward pressure on prices. That initially pushed traders to ratchet back expectations for the size of the Fed's upcoming move.
On Friday, though, traders were seeing roughly a coin flip's chance that the Fed could deliver a large cut of half of a percentage point, instead of the more traditional quarter of a point, according to data from CME Group. The federal funds rate is currently sitting in a range of 5.25% to 5.50%.
In energy trading, benchmark U.S. crude gained 61 cents to $68.36 a barrel. Brent crude, the international standard, added 51 cents to $72.12 a barrel.