TOKYO (AP) — Global stock markets were mixed on Wednesday as investors awaited an expected economic slowdown. Interest rate cuts This is the first time in more than four years that the Federal Reserve has done so.
France's CAC 40 was down 0.2% at 7,474.92 at the open, while Germany's DAX was down just under 0.1% to 18,723.53. Britain's FTSE 100 was down 0.5% to 8,268.29. Dow Jones Industrial Average futures were up 0.1%, while S&P 500 futures were up just under 0.1%.
Bank of Japan The Bank of England also meets later this week, but while neither central bank plans to change interest rates, comments from officials could signal further moves and influence markets.
Asian markets rose. Japan's Nikkei rose 0.5% to finish at 36,380.17. Australia's S&P/ASX 200 was little changed, up less than 0.1% to 8,142.10. South Korea's KOSPI rose 0.1% to 2,575.41.
Hong Kong was closed for National Day. The Shanghai Composite Index rose 0.5% to 2,717.28.
The Fed's announcement is scheduled for Wednesday, with Wall Street overwhelmingly expecting a cut in the federal funds rate, which has been hovering between 5.25% and 5.50% for more than a year.
Lower interest rates would boost a slowing economy, as borrowing for everything from homes to cars to corporate debt has become increasingly expensive.
The Federal Reserve is keeping its key interest rate at a 20-year high in hopes of squeezing the economy to tame high inflation.
Japan The trade deficit was 695 billion yen, or 4.9 billion dollars. According to the Ministry of Finance, gross domestic product (GDP) in August fell 26% from the same month last year, marking the second consecutive month of deficit.
Exports totaled 8.4 trillion yen ($59 billion), up 5.6% from the same month last year. Exports to Asia increased, but exports to the United States decreased. Imports totaled 9.1 trillion yen ($64 billion), up 2.3% from the previous year. By region, imports from European countries showed the highest increase in areas such as pharmaceuticals.
Both figures fell short of forecasts of a 10% increase in exports and an even greater increase in imports.
In recent weeks, the Japanese yen has strengthened in value against the US dollar, helping to boost Japan's purchasing power.
The dollar fell to 141.81 yen from 142.34 yen after trading above 150 yen earlier this year.
The euro rose to $1.1131 from $1.1117.
In energy trading, benchmark U.S. crude fell 86 cents to $70.33 a barrel, while the international standard Brent crude fell 82 cents to $72.88 a barrel.
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Yuri Kageyama is at X: https://x.com/yurikageyama
