Global stocks rise on hopes that US rate hike plans ease

BEIJING (AP) — Global stock markets mostly gained on Wednesday on hopes the Federal Reserve might ease interest rate hike plans, while London opened lower after Britain installed its third Prime Minister this year in the midst of an economic crisis.

Other European markets won. Shanghai, Tokyo and Sydney closed higher. The euro edged above $1.

Futures for Wall Street’s benchmark S&P 500 index fell after gaining a third day on Wednesday after bond prices rose. This suggests that some investors expect the Fed to ease rate hikes as economic activity cools.

Traders see falling U.S. house prices and other data as support for a “reminder” of Fed plans at its December meeting, Mizuho Bank’s Vishnu Varathan said in a statement. report.

In early trading, the FTSE 100 in London fell 0.2% to 7,001.84 after Prime Minister Rishi Sunak warned on Tuesday of a “deep economic crisis”.

The Frankfurt DAX gained 0.7% to 13,146.40 and the CAC 40 in Paris gained 0.4% to 6,274.66.

On Wall Street, the S&P 500 future lost 0.6% and that of the Dow Jones Industrial Average remained unchanged.

On Tuesday, the S&P 500 gained 1.6%. The Dow Jones rose 1.1% and the Nasdaq 2.3%.

The 10-year Treasury yield, or the difference between the market price and the payment at maturity, slipped to 4.09% from 4.23% late Monday. The two-year Treasury yield, which tracks Federal Reserve action, fell to 4.45% from 4.50% late Monday.

The Fed and other central banks raised interest rates to slow economic growth and reduce upward price pressure. Investors fear this could tip the global economy into recession.

Traders grew more confident that the Fed will cut its three-quarter rate hike plans to half a percentage point at its December meeting, according to CME Group.

The US economy contracted during the first half of the year. The government will release its third quarter gross domestic product report on Thursday.

Wall Street’s gains were led by technology stocks, retailers and communications companies.

Investors are looking at corporate earnings to see how inflation, which has been at multi-decade highs, is affecting consumer spending.

General Motors Co. rose 3.6% after posting strong results. United Parcel Service fell 0.3% after the parcel delivery service beat profit and revenue forecasts.

In Asia, the Shanghai Composite Index rose 0.8% to 2,999.50 and the Hang Seng in Hong Kong gained 1% to 15,317.67.

The Nikkei 225 in Tokyo gained 0.7% to 27,431.84 following reports that the government was set to announce a stimulus package this week that could top 20 trillion yen ($140 billion) .

The Kospi in Seoul added 0.7% to 2,249.56. Sydney’s S&P-ASX 200 rose 0.2% to 6,810.90 after the government announced Australian inflation rose to 7.3% in the three months to September.

The New Zealand and Southeast Asian markets grew. Indian markets were closed for a holiday.

In energy markets, benchmark U.S. crude gained 43 cents to $85.75 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 74 cents to $85.32 on Tuesday. Brent crude, the price basis for international oil trade, added 9 cents to $91.83 a barrel in London. It gained 26 cents the previous session to $93.52.

The dollar slipped to 146.98 yen from 147.97 yen on Tuesday. The euro fell from 99.66 cents to $1.0039.

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