UK’s FTSE 100 hits 3-month high
UK’s main stock index hit a three-month high on Friday, set to eke out gains for the topsy-turvy month, with bank shares in the lead ahead of crucial global economic data that could shed further light on the pace of rate cuts by top central banks.
The Blue-chip FTSE 100 index was up 0.3 percent as of 0706 GMT, on track for its second straight monthly gain and third consecutive weekly advance. The domestically-focused mid-cap FTSE 250 rose 0.2 percent, but eyed a monthly decline.
At the open European share markets mixed
European stock markets diverged in opening deals on Friday before the release of US and eurozone inflation data that could shed light on the path of interest rates in the two major economies.
The Frankfurt DAX fell by almost 0.1 percent to 18,898.11 points, a day after closing at a record high.
The Paris CAC 40 rose by 0.3 percent to 7,662.91 points despite revised figures showing the French economy grew less than previously estimated in the second quarter at 0.2 percent.
Inflation in France, however, slowed to 1.9 percent, falling under the European Central Bank’s two-percent target for the first time since August 2021.
Asia shares set for solid monthly gain
Asian Stocks rose on Friday and were poised for a solid end to August while the dollar was staring at its worst monthly performance in nine months, on the view that the Federal Reserve is all but certain to cut interest rates next month.
The Release of the US core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, as well as a reading on euro zone inflation later on Friday take centre stage, and would likely offer further clues on the rate outlook across major economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.44 percent, and was set for a gain of nearly 2 percent for the month. US stock futures extended Wall Street’s positive run, with Nasdaq futures rising 0.25 percent and S&P futures advancing 0.12 percent.
Solid growth and resilience in the world’s largest economy trumped investors’ disappointment on Nvidia’s underwhelming results, which had sent global technology stocks falling.
Indian shares hit record highs
Indian Shares hit a fresh peak on Friday, tracking gains in regional peers, after US economic data eased growth concerns, while investors await domestic quarterly growth data.
The NSE Nifty 50 index was up 0.27 percent at 25,218.85 as of 10:15 a.m. IST, while the S&P BSE Sensex added 0.23 percent to 82,329.79, with both the benchmarks hitting all-time highs.
The Nifty has risen for the previous 11 consecutive sessions, marking its longest winning streak in about 17 years. Both the benchmarks have gained about 1 percent in August and are on course to log gains for the third straight month, adding about 12 percent over the period.
“We expect the uptick in markets to continue further, helped by surplus liquidity and a positive medium-term growth outlook,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Asian markets rose, with the MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.7 percent, on the back of robust US economic data.
Japan’s Nikkei rises
Japan’s Nikkei share average advanced on Friday after the Dow notched a record closing high overnight, with technology stocks leading the gains.
The Nikkei rose 0.58 percent to 38,585.43 by the midday break, but was flat for the week.
The Broader Topix climbed 0.56 percent to 2,708.08 and was up 0.3 percent for the week. “The Dow’s strong finish lifted domestic equities. Chip-related stocks rose despite a decline of the Nasdaq, which means Nvidia is no longer a market-moving cue,” said Naoki Fujiwara, senior general manager at Shinkin Asset Management.
The Dow posted a record-high close on Thursday in mixed trading following robust US economic data, while artificial intelligence chipmaker Nvidia dropped after its largely in-line forecast failed to impress investors.
Australian shares gain
Australian shares rose on Friday, helped by resources stocks on firmer commodity prices, while investors focused on July retail sales data due later in the day to assess consumer demand prospects. The S&P/ASX 200 index rose 0.4 percent to 8,073 by 0020 GMT. The benchmark has fallen about 0.2 percent so far in the month after three consecutive months of advancements. The retail sales report is expected to shed more light on consumer demand prospects in Australia where interest rates are at a 12-year high. Data released earlier this week showed that inflation slowed to a four-month low in July but was slightly above forecasts.
Sri Lankan shares close lower
Sri Lankan shares settled lower on Thursday as a plunge in real estate stocks weighed.
The CSE All-Share index settled 0.35 percent lower at 10,907.98 points, logging losses for the ninth straight session.
Lee Hedges and Renuka Hotels were the top percentage losers on the index, down 10 percent and 7.9 percent, respectively.
Trading volume on the index fell to 23.8 million shares from 35.1 million shares in the previous session. The equity market’s turnover surged to 1.04 billion Sri Lankan rupees ($3.5 million) from 732.5 million rupees in the previous session, according to exchange data.
China stocks end down
China stocks ended lower on Thursday, dragged by the financial sector following weak earnings at some lenders, and a correction in stock prices of some major state banks. Hong Kong shares rose, led by tech shares.
China’s CSI Financials index lost 1.8 percent, with Xiamen Bank down 6.9 percent after the lender reported a 15 percent decline in half-year net profit on Wednesday.
Shares of Citic Bank and Bank of Communications were both down nearly 7 percent in Hong Kong.
Shares of major Chinese state banks have soared this year, with most up over 20 percent. Shares of Agriculture Bank of China hit a record high on Wednesday, but closed 4.7 percent lower on Thursday.