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regular-article-logo Tuesday, 18 June 2024

Global shares trade lower, investors await interest rate cut cue from Federal Reserve

France’s CAC 40 was virtually unchanged in early trading at 8151.94, while Germany’s DAX edged up 0.1 per cent to 18227.53. Britain’s FTSE 100 was little changed, inching down less than 0.1 per cent to 7929.84

AP Tokyo Published 26.03.24, 08:16 AM
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Representational image File picture

Global shares were trading mixed on Monday, as investors awaited further indications the Federal Reserve might begin cutting interest rates.

France’s CAC 40 was virtually unchanged in early trading at 8151.94, while Germany’s DAX edged up 0.1 per cent to 18227.53. Britain’s FTSE 100 was little changed, inching down less than 0.1 per cent to 7929.84.

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The futures for the S&P 500 and the Dow Jones Industrial Average were 0.1 per cent lower.

Japan’s Nikkei 225 shed 1.2 per cent to finish at 40414.12 as investors sold shares to lock in profits after the benchmark recently hit record highs.

Hong Kong’s Hang Seng declined 0.2 per cent to 16473.64, while the Shanghai Composite fell 0.7 per cent to 3026.31.

China’s currency, the yuan, was set at a rate of 7.0996 against the US dollar. The official “central parity rate” is based on a weighted average of prices offered by market makers before the interbank market opens each business day. It is allowed to rise or fall only by 2 per cent each trading day.

The yuan had weakened to more than 7.2282 to the dollar on Friday, falling to a four-month low, as the dollar gained against other currencies. Australia’s S&P/ASX 200 rose 0.5 per cent to 7811.90. South Korea’s Kospi lost 0.4 per cent to 2737.57.

A top Japanese finance official expressed reservations about the recent surge in the US dollar against the Japanese yen, fuelling speculation about possible intervention in the market. The dollar has risen to nearly 152 yen, a jump from slightly above 130 yen a year ago. It was trading at 151.32 yen on Monday, down from 151.41 yen. The euro cost $1.0823, up from $1.0810.

The Bank of Japan raised a key interest rate for the first time in 17 years last week, to barely above zero from below zero, or negative interest rates. Borrowing rates in Japan still remain below those of the US and many other nations.

AP

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