TOKYO (AP) — Global stocks were mixed Wednesday after Wall Street indices ended little changed as investors awaited earnings results from top global companies.
The US government will release fourth-quarter economic growth data on Thursday. Economists expect the economy to expand at an annual rate of less than 1%, up from 1.9% in the third quarter, after contracting in the first half of 2022. Investors will receive more updates on personal income and spending on Friday.
France’s CAC 40 fell 0.2% to 7,040.34. Germany’s DAX fell 0.2% to 15,064.94. Britain’s FTSE 100 rose 0.1% to 7,762.45. The S&P 500 future was down 0.4% and the Dow Jones Industrial Average future was down 0.3%.
On Tuesday, the S&P 500 fell less than 0.1% and the Dow Industrial rose 0.3%. The Nasdaq Composite fell 0.3% while the Russell 2000 lost 0.3%.
Australia reported higher-than-expected inflation figures on Wednesday, prompting expectations of another interest rate hike. Consumer inflation rose 8.4% in December, higher than the forecast of 7.6%. It anchored expectations of another 25 basis point hike from the Reserve Bank of Australia in February, said Yeap Jun Rong, a market analyst at IG.
“It’s not the end of the world, but it’s a little worrying that Australian inflation hasn’t started to come down yet. We think it will in the coming months,” said Peter Esho, economist and co-founder of Wealthi.
Japan’s benchmark Nikkei 225 index gained nearly 0.4% to end at 27,395.01. Australia’s S&P/ASX 200 lost 0.3% to 7,468.30, while South Korea’s Kospi jumped 1.4% to 2,428.57.
The Sensex in Mumbai lost 1.2% to 60,247.10. Major mining and energy conglomerate Adani Group experienced losses at its group companies after short selling firm Hindenburg Research released a report that included various allegations against the companies.
Flagship Adani Enterprises lost 1.5%, while six other major Adani companies posted losses of up to 6%. The loss of market capitalization amounted to more than 7,000 million dollars, according to the Financial Times newspaper.
In a statement, the Adani group said it was “shocked” by the report.
“The report is a malicious combination of targeted misinformation and outdated, baseless and discredited allegations that have been proven and rejected by India’s highest courts,” the group’s chief financial officer Jugeshinder Singh said in a statement.
Stocks have been volatile as investors try to get a better idea of how inflation is affecting the economy, the potential for a recession and whether the US Federal Reserve can moderate its aggressive interest rate hikes.
The Fed will announce its next rate hike on February 1 and traders are expecting a quarter point increase, which would mark a dovishness in the central bank’s pace.
The US government will release gross domestic product data for the fourth quarter on Thursday. Economists expect growth of less than 1%, up from 1.9% in the third quarter, and a contraction during the first half of 2022. Investors will receive more updates on personal income and spending on Friday.
In energy trading, benchmark US crude gained 18 cents to $80.31 a barrel in electronic trading on the New York Mercantile Exchange. It settled 1.8% lower overnight. Brent crude, the international standard price, rose 38 cents to $86.51 a barrel.
In currency trading, the US dollar rose to 130.27 Japanese yen from 130.18 yen. The euro was priced at $1.0890, slowly rising from $1.0889.
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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
