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TOKYO (AP) Global equities are mostly higher, buoyed by another rally on Wall Street fueled by hopes that cooling inflation will help stave off further rate hikes.
Frances CAC 40 gained 0.3% in early trading to 7,394.68. The German DAX fell 0.1% to 16,121.61. The British FTSE 100 rose 0.2% to 7,453.21 points.
Futures for the Dow Jones Industrial Average and the S&P 500 fell less than 0.1%.
Average long-term mortgage rates in the US rose to just under 7% this week, the highest level since November and the latest setback for homebuyers already grappling with a difficult housing market limited by a shortage of homes for sale.
Wholesale prices in the United States slowed again last month, the latest sign that inflationary pressures are easing in the face of the Federal Reserve’s series of rate hikes.
Asian stocks rose on Friday after Wall Street’s winning streak entered a fourth day, bolstered by the latest signal that inflation may ease.
Inflation politics took a sharp turn with a new report showing consumer prices rising at the slowest pace since the early months of Joe Biden’s presidency.
China will release an update on economic growth in the April-June quarter on Monday. Analysts predict growth has accelerated to more than 7% year-on-year, up from 4.5% in the previous quarter, but largely due to sluggish business activity as the country endured the worst waves of COVID-19 outbreaks .
In Asian trading, the Japanese benchmark Nikkei 225 lost previous gains to finish 0.1% lower at 32,391.26. The Australian S&P/ASX 200 rose 0.8% to 7,303.10. The South Korean Kospi rose 1.4% to 2,628.30. The Hong Kong Hang Seng rose 0.3% to 19,413.78, while the Shanghai Composite was virtually unchanged, up less than 0.1% to 3,237.70.
Recent data has raised hopes that US inflation is cooling enough to prompt the Federal Reserve to curtail its blistering streak of rate hikes. Wholesale inflation slowed more than expected in Juneand prices paid by producers were only 0.1% higher than a year earlier.
High inflation has been the main reason why investors feared a possible recession, because of the high interest rates that the Federal Reserve has raised to control prices. High rates undermine inflation by flatly slowing the entire economy and hurting prices for investments. They can also cause unexpected parts of the economy to break.
Traders remain almost convinced that the Fed will raise Federal Funds rates to the highest level since 2001 at its next meeting in two weeks. But this week’s inflation data has also led traders to bet that this will be the last rate hike. of this cycle will be.
In energy trading, benchmark US crude lost 2 cents to $76.87 a barrel in electronic trading on the New York Mercantile Exchange. It picked up $1.14 to $76.89 a barrel on Thursday.
Brent oil, the international standard, fell 2 cents to $81.34 a barrel.
In currency trading, the US dollar rose from 138.05 yen to 138.26 Japanese yen. The euro was priced at $1.1232, up from $1.1228.
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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
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