European share markets open mixed
Europe’s main stock markets opened mixed Thursday, but London rose as investors awaited a possible interest-rate reduction from the Bank of England and digested a raft of company earnings.
In initial deals, London’s FTSE 100 index rose 0.4 percent to 8,399.26 points.
In the eurozone, the Paris CAC 40 fell 0.7 percent to 7,476.01 points and Frankfurt’s DAX lost 0.4 percent to 18,426.52.
Asian equities mostly rose, however, after the US Federal Reserve flagged a possible interest rate cut next month, but Tokyo tumbled on a stronger yen following a hike from the Bank of Japan.
China stocks fall
China stocks fell on Thursday, following the biggest one-day gain in five months in the previous session, as a private sector survey showed the country’s manufacturing activity in July shrank for the first time in nine months, while a weakening yuan also dented investor sentiment.
The Caixin/S&P Global manufacturing PMI fell to 49.8 in July from 51.8 in the previous month, the lowest reading since October last year and missing analysts’ forecasts of 51.5.
The reading, which mostly covers smaller, export-oriented firms, was in line with an official PMI survey on Wednesday that showed manufacturing activity slipped to a five-month low.
Australian stocks extend gains on mining and energy boost
Australian shares rose for a second straight session on Thursday in broad-based buying, with energy and mining stocks leading the gains on stronger underlying commodity prices.
The S&P/ASX 200 index rose 0.5 percent to 8,130.40 by 0038 GMT.
On Wednesday, the index climbed 1.8 percent to hit an all-time closing high after softer-than-expected inflation data lowered odds of an interest rate hike next week.
The Aussie dollar was last 0.05 percent weaker against the US dollar at A$0.65.
Data showed the annual pace of second-quarter core inflation was the slowest since early 2022, prompting investors to rein back the probability of a rate hike at the Reserve Bank of Australia’s policy meeting on Aug. 6.
Asian stocks extend global rally
Asian shares rallied on Thursday, tracking a huge revival in global tech stocks helped by Meta and Nvidia, while prospects of imminent policy easing in the US boosted global bonds and commodities.
The Federal Reserve held interest rates steady overnight but opened the door to a cut in September.
That had traders wagering that the Bank of England might cut later in the day, with the probability of a move at 60 percent.
The yen extended its blockbuster rally, up another 0.8 percent to a 4-1/2-month high of 148.82 per dollar, having surged 1.8 percent overnight.
The Bank of Japan raised interest rates for the second time in 17 years on Wednesday and signalled more tightening to come.
India’s Nifty tops 25,000 points to record highs
Indian shares hit all-time highs at the open on Thursday, with the Nifty breaching the 25,000-point mark, tracking a global rally after the US Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut in September.
The NSE Nifty 50 rose 0.32 percent to 25,030.95 points as of 9:15 a.m. IST, while the S&P BSE Sensex added 0.25 percent to 81,949.68.
Asian markets joined the rally that started on Wall Street overnight after the Fed held interest rates steady as expected but Powell spoke of a “growing sense of confidence” that rate cuts could start in September, also as expected.
“It’s now almost certain that there will be a rate cut in the US in September, which is very good from an emerging markets perspective, in terms of foreign inflows,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.
Japanese shares tumble
Japan’s Nikkei share average fell more than 3 percent in morning trade on Thursday as the yen appreciated further and index heavyweights tumbled, following the Bank of Japan’s (BOJ) historic monetary policy meeting the previous day.
The BOJ raised interest rates on Wednesday to levels unseen in 15 years and announced details on how it will reduce its huge bond buying.
“It appears the market didn’t judge the BOJ’s move to be too hawkish, and that the policy uncertainty overhang has been removed,” said David Chao, global market strategist, Asia Pacific (ex-Japan) at Invesco.
The BOJ’s decision has further supported the yen, with the dollar falling nearly 1 percent against the Japanese currency during early trading hours on Thursday.
After killing of Hamas leader most Gulf markets in red
Most stock markets in the Middle East ended lower on Wednesday as the killing of Hamas leader Ismail Haniyeh in Iran fuelled tensions in the region, with investors also focused on a U.S. interest rate decision by the Federal Reserve.
Haniyeh was assassinated in the early hours of the morning in Iran, Hamas said on Wednesday, stoking fears of further escalation in a region shaken by Israel’s war in Gaza and a worsening conflict in Lebanon.
The assassination, which came less than 24 hours after Israel claimed to have killed the Hezbollah commander it said was behind a deadly strike in the Israeli-occupied Golan Heights, appeared to set back chances of any imminent ceasefire agreement in Gaza.
Sri Lanka shares end lower
Sri Lankan shares closed lower on Wednesday, hurt by industrials and healthcare stocks.
The CSE All-Share index settled 0.91 percent lower at 11,406.56.
Sri Lanka’s key inflation rate fell 0.5 percent month-on-month in July after a 0.8 percent rise in June, the statistics department said on Wednesday.
The Colombo Consumer Price Index (CCPI) rose to 2.4 percent year-on-year in July, after a 1.7 percent rise in June.
Nuwara Eliya Hotels Co Plc and Hunter & Company Plc were the top losers on the index, declining 9.2 percent and 3.2 percent, respectively.