HONG KONG/October 11, 2017 (AP)(STL.News) — World stocks were mixed Wedneday as upward momentum from a record Wall Street close faded and investors grew cautious ahead of the release of the latest Fed meeting minutes and a key Chinese communist party meeting next week.
KEEPING SCORE: European shares were uneven in early trading. Germany’s DAX crept 0.1 percent higher to 12,954.30 while France’s CAC 40 lost 0.2 percent to 5,355.47. Britain’s FTSE 100 dipped 0.1 percent to 7,535.22. Wall Street was poised to open lower. Dow futures slipped less than 0.1 percent to 22,775.00 and broader S&P 500 futures shed 0.1 percent to 2,546.30.
GLOBAL OUTLOOK: Sentiment brightened somewhat after the International Monetary Fund’s raised its latest forecast for global growth to 3.6 percent for this year and 3.7 percent in 2018, the fastest rates since 2010. It expects growth to accelerate in the United States, the 19-country Eurozone, Japan and China this year, with a pickup in investment, industrial production and consumer and business confidence underpinning the improved global outlook.
SPANISH TURMOIL: Catalonia’s president backed away from plans to immediately break away from Spain following results of a disputed Oct. 1 referendum in favor of the region’s independence, easing pressure on the euro. In a speech, regional President Carles Puigdemont said he would delay a declaration of independence for several weeks to give dialogue a chance. Spain’s IBEX 35 index gained 1.3 percent in early trading.
MARKET VIEW: Investors in mainland China and Hong Kong are pulling back ahead of a Communist Party meeting that begins next week, when Beijing is expected to outline policy goals. “There’s still lack of momentum to go further, I think, especially with the national congress coming up soon,” said Jackson Wong of Huarong International Securities. “There’s a lot more waiting than aggressive buying at this point.”
US DATA: Markets will be watching for the release of the Federal Reserve’s September meeting minutes later in the day for new hints on the U.S. central bank’s stance on interest rates, which many analysts expect will be raised one more time by the end of the year. Also on the horizon are the first corporate earnings as the U.S. quarterly reporting season gets underway.
ASIA’S DAY: Japan’s Nikkei 225 index closed at a new 21-year high, rising 0.3 percent to 20,881.27, a level it hasn’t seen since December 1996. South Korea’s Kospi rose 1 percent to 2,458.16 and Australia’s S&P/ASX 20 0.6 percent to 5,770.10. The Shanghai Composite in mainland China edged up 0.2 percent to 3,388.28 but Hong Kong’s Hang Seng gave up earlier gains to end 0.4 percent lower at 28,389.57. Shares in Southeast Asia were mixed.
ENERGY: Oil futures extended gains. Benchmark U.S. crude oil rose 10 cents to $51.02 a barrel in electronic trading on the New York Mercantile Exchange. The contract added $1.34, or 2.7 percent, to settle at $50.92 a barrel on Tuesday. Brent crude, used to price international oils, gained 15 cents to $56.76 a barrel in London.
CURRENCIES: The dollar slipped to 112.26 yen from 112.45 yen in late trading Tuesday. The euro strengthened to $1.1819 from $1.1808.