Global markets trade mixed after Wall Street climbs closer to its record highs

Associated Press

HONG KONG (AP) — Global stocks were mixed Friday after stocks in the United States pulled closer to their record highs following economic reports that came in close to expectations.

European markets were mostly higher in early trading Friday after the European Central Bank reduced interest rates again on Thursday to support sluggish growth as inflation continues to subside. France’s CAC 40 rose 0.3% to 7,454.10, and Germany’s DAX added 0.4% to 18,595.43. Britain’s FTSE 100 edged down 0.1% to 8,234.25.

Futures for the S&P 500 climbed 0.2% and those for the Dow Jones Industrial Average were 0.1% higher.

Japan’s benchmark Nikkei 225 slipped 0.7% to close at 36,581.76 after data released Friday showed the nation’s industrial production increased 2.9% year-on-year in July, signaling improved demand in the manufacturing sector.

The dollar fell to 141.68 yen from 141.79 yen, adding pressure on Japan’s exports.

“The Bank of Japan is not expected to make any rate move at its meeting next week, but there may be some hawkish pricing brewing for policymakers to lay the groundwork for further rate hikes in December and beyond,” said IG market analyst Yeap Jun Rong.

Hong Kong’s Hang Seng rose 0.8% to 17,369.09, while the Shanghai Composite was down 0.5% at 2,704.09 after China’s legislature announced Friday that it would raise the retirement age from 60 to 63 years for men and from 50 to 55 or 58 years for women, according to state media. The Chinese Academy of Sciences said the pension system may run out of money by 2035 because of the current economic slump and an aging population.

China is also set to release its monthly economic data on Saturday, with market predictions that the three key indicators — industrial production, fixed asset investment and retail sales — will show a slowdown.

Elsewhere, Australia’s S&P/ASX 200 rose 0.3% to 8,099.90. South Korea’s Kospi picked up 0.1% to 2,575.41.

On Thursday, the S&P 500 rose 0.7% to 5,595.76, climbing back to within 1.3% of its record set in July following a shaky summer. It’s on track for a fourth winning week in the past five.

The Dow Jones Industrial Average added 0.6% to 41,096.77, and the Nasdaq composite gained 1% to 17,569.68.

One report said the number of U.S. workers applying for unemployment benefits last week ticked up, though it remains low relative to history. Another said prices charged at the wholesale level were 1.7% higher in August than a year before. That’s a slowdown from July’s inflation rate, but an underlying measure that economists see as a better predictor of future trends also ticked up more than expected.

The inflation data was similar to Wednesday’s report on prices at the U.S. consumer level. It kept traders betting the Fed will deliver a traditional-sized cut of a quarter of a percentage point next week, instead of the larger half-point that some had been expecting.

While lower interest rates help goose the economy and investment prices, they can also give inflation more fuel.

In energy trading, benchmark U.S. crude gained 48 cents to $69.45 a barrel. Brent crude, the international standard, added 50 cents to $72.47 a barrel.

The euro cost $1.1088, up from $1.1074.