A Mixed Day for World Shares as Wall Street Steadies

BANGKOK — World shares showed mixed results on Thursday following new economic data from the United States that helped ease tensions in Wall Street trading.

U.S. Futures and Market Reactions

In the pre-market trading, U.S. futures were slightly down, with the S&P 500 futures declining by 0.2%, and the Dow Jones Industrial Average futures falling less than 0.1%. U.S. stock markets are closed on Thursday in honor of a National Day of Mourning for former President Jimmy Carter.

European Markets

During early trading in Europe, the German DAX index dropped 0.2% to 20,285.80. The French CAC 40 remained nearly flat at 7,454.28, while the UK’s FTSE 100 saw a rise of 0.6% to 8,302.33.

Asian Markets Decline

Most Asian markets experienced declines amid rising caution regarding potential trade tensions as President-elect Donald Trump prepares to take office. Shares in Tokyo fell after Japan reported strong wage growth for November, which might lead the central bank to consider raising interest rates. The Nikkei 225 index decreased by 0.9% to 39,605.09, with the dollar also losing ground against the yen; one dollar bought 158.08 yen, down from 158.36 on Wednesday.

In Hong Kong, the Hang Seng index fell by 0.2% to 19,240.89, while the Shanghai Composite index dropped 0.6% to 3,211.39. Recent government reports indicated a 0.1% increase in the consumer price index for December compared to the previous year, whereas producer prices fell by 2.3%, suggesting weak demand in China.

South Korea's Kospi index edged up slightly by less than 0.1% to 2,521.90, helped by strong performances from technology companies and automakers. However, Taiwan's Taiex index saw a significant decline of 1.4%, and India’s Sensex fell by 0.7%. The Thai SET index dropped 1.8%.

Investor Sentiment and Economic Outlook

Stephen Innes of SPI Asset Management remarked that investors are trying to navigate the unpredictable market shaped by the upcoming Trump presidency. The initial excitement around tax cuts is now being overshadowed by concerns about potential tariffs and unusual geopolitical ambitions.

Wall Street's Performance

Wall Street showed some stability following strong economic reports earlier in the week, though worries about inflation and interest rates lingered. The S&P 500 increased by 0.2%, and the Dow Jones Industrial Average gained 0.3%, while the Nasdaq composite dipped by 0.1%. Smaller stocks reflected a more pessimistic trend, as the Russell 2000 index fell by 0.5%.

Company News and Bond Market Developments

In company news, Edison International faced a significant drop of 10.2% due to wildfires affecting the Los Angeles area. Their subsidiary, Southern California Edison, turned off power for nearly 120,000 customers in various counties to mitigate fire risks.

The bond market, which has attracted heightened attention lately, exhibited minor fluctuations following comments from Fed Governor Christopher Waller. Waller stated that he anticipates the Federal Reserve will further reduce rates in 2025, countering speculation that rate cuts might have halted after three reductions since September. The yield on two-year Treasuries fell from 4.29% to 4.27%, while yields on 10-year Treasuries dropped to 4.67% from 4.69%.

Inflation and Job Market Signals

Waller believes that tariffs under Trump are unlikely to significantly impact inflation long-term, and despite current inflation figures, he expects a downward trend over time. Higher bond yields can negatively affect stock prices by making borrowing more costly and shifting investor focus from stocks to bonds.

Recent economic reports provided mixed signals, with indications that private sector job creation slowed more than anticipated in December, ahead of an upcoming jobs report from the Labor Department. Investors are hoping for enough strength in the job market to allay recession fears while keeping the path clear for potential rate cuts.

Commodities and Currency Movements

In commodities trading early Thursday, U.S. benchmark crude oil prices fell by 16 cents to $73.16 per barrel, while Brent crude, the global standard, dipped by 8 cents to $76.08. On the currency front, the euro weakened slightly, trading at $1.0312, down from $1.0319.

shares, market, economy