Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Europe Shares Fall as Selling Kicks In 10/05 04:59

   European indexes fell in early trading and U.S. futures were down as selling 
pressure kicked in Wednesday after a few days of strong gains.

   TOKYO (AP) -- European indexes fell in early trading and U.S. futures were 
down as selling pressure kicked in Wednesday after a few days of strong gains.

   Asian shares advanced, led by a nearly 6% jump in Hong Kong's share 
benchmark as markets there caught up after reopening from a holiday.

   Easing concerns about interest rate hikes by central banks have helped push 
markets higher in the past few days, but worries over inflation persist.

   Britain's FTSE 100 fell 1.2% to 7,002.15 ahead of a speech by British Prime 
Minister Liz Truss where she was expected to defend her economic plans, 
including tax cuts that have roiled markets.

   Truss says she will stick with her plan to reshape Britain's economy through 
tax cuts and deregulation in a bid to end years of sluggish growth and create 
"a new Britain for the new era."

   France's CAC 40 fell 0.7% to 5,996.89 in early trading, while Germany's DAX 
slipped 0.8% to 12,574.14. The future for the S&P 500 was down 0.7% while that 
for the Dow industrials also lost 0.7%.

   On Tuesday, the Dow Jones Industrial Average climbed more 2.8% while the S&P 
500 surged 3.1%. The Nasdaq composite climbed 3.3% and the Russell 2000 
advanced 3.9%.

   In Asia on Wednesday, New Zealand's share benchmark rose 0.8% after its 
central bank hiked its benchmark interest rate to 3.5%, saying inflation 
remained too high and labor scarce.

   New Zealand's share benchmark rose 0.8% after its central bank hiked its 
benchmark interest rate to 3.5%, saying inflation remained too high, most 
recently at 7.3%, and labor scarce. The half-point rate hike was the fifth in a 
row by the Reserve Bank of New Zealand since February.

   The Hang Seng in Hong Kong rose 5.9% to 18,087.97, catching up with gains 
elsewhere as markets reopened following a holiday Tuesday. Markets in mainland 
China remained closed for a holiday.

   Japan's benchmark Nikkei 225 added 0.5% to finish at 27,120.53. Australia's 
S&P/ASX 200 climbed 1.7% to 6,815.70, helped by a smaller-than-expected 25 
basis points interest rate hike on Tuesday.

   South Korea's Kospi gained 0.3% to 2,215.22.

   Analysts said the latest data on South Korea's inflation may push the Bank 
of Korea to raise interest rates at its meeting set for next week, but such 
hikes were expected to slow in pace as inflation is brought under control.

   "We expect headline inflation to rise again in October. Gasoline prices will 
likely decline further, but city gas and power rates were raised at the 
beginning of October and fresh food prices will also probably rise ahead of 
winter," said a report by Robert Carnell, regional head of research 
Asia-Pacific at ING.

   Investors have been looking for signs that central banks might ease up on 
aggressive rate hikes aimed at taming the hottest inflation in four decades. 
The rate hike by Australia's central bank was smaller than previous ones.

   Investors are watching closely as central banks raise interest rates to make 
borrowing more difficult and slow economic growth to try to tame inflation.

   Economic growth is already slowing globally and the U.S. economy contracted 
during the first two quarters of the year, which is considered an informal 
signal of a recession.

   Wall Street will get a more detailed look at employment in the U.S. this 
week, with a report on hiring by private companies due later Wednesday, the 
latest tally of weekly applications for unemployment benefits Thursday and the 
government's monthly jobs report for September on Friday.

   In energy trading, benchmark U.S. crude fell 46 cents to $86.06 a barrel in 
electronic trading on the New York Mercantile Exchange. It surged $2.89 to 
$86.52 on Tuesday. Brent crude, the international standard for pricing, lost 37 
cents to $91.43 a barrel.

   In currency trading, the U.S. dollar rose to 144.34 Japanese yen from 144.20 
yen. The euro cost 99.50 cents, down from 99.87 cents.

 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN