Stock market today: Global shares get a lift from encouraging US inflation report
Global shares are mostly higher, cheered by a rally on Wall Street that was one of the best days of the year following a surprisingly encouraging report on inflation
TOKYO — Global shares powered higher on Wednesday, cheered by a broad rally on Wall Street after an encouraging U.S. inflation report raised hopes for an end to interest rate hikes by the Federal Reserve.
France's CAC 40 rose 0.5% in early trading to 7,221.25. Germany's DAX edged 0.2% higher, to 15,644.95, while Britain's FTSE 100 surged 1.0% to 7,515.58. The future for the Dow Jones Industrial Average was up 0.2% and that for the S&P 500 gained 0.3%.
Tokyo's benchmark Nikkei 225 rose 2.5% to finish at 33,519.70 as investors appeared to shrug off news that Japan’s economy contracted at a worse than expected 2.1% annual rate in July-September. In quarterly terms, it contracted 0.5%.
The world's No. 3 economy is grappling with weakening private demand from consumers and businesses, slack demand for Japan's exports and sluggish wage growth that will continue to drag on consumer spending, which is the main driver of the economy, said Marcel Thieliant of Capital Economics.
“Accordingly, we expect GDP growth to slow from 1.7% this year to 0.5% in 2024,” he said in a commentary.
Hong Kong’s Hang Seng added 3.9% to 18,079.00, while the Shanghai Composite gained 0.6% to 3,072.83 after economic figures for October showed the Chinese economy is holding up even as some indicators have slowed.
Factory output and retail sales rose but property sales fell further. Lending, exports and inflation also have been lower than expected.
Australia's S&P/ASX 200 jumped 1.4% to 7,105.90. South Korea's Kospi surged 2.2% to 2,486.67.
On Tuesday, the S&P 500 jumped 1.9% for its
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