- German 'Maddie' suspect could be free soon after cleared of separate sex crimes
- China says to take anti-dumping measures against EU brandy imports
- China stocks rally fizzles on stimulus worries amid Asia retreat
- China stocks rally peters out on stimulus worries amid Asia retreat
- Taiwan's Foxconn says building world's largest 'superchip' plant
- Nobel literature jury may go for non-Western writer
- From Bolivia to Indonesia, deforestation continues apace
- China holds off on fresh stimulus but 'confident' will hit growth target
- German suspect in 'Maddie' case faces verdict in sex crimes trial
- Top economic official 'confident' China will hit 2024 growth target
- COP29 fight looms over climate funds for developing world
- Shanghai stocks soar to extend stimulus rally amid Asia-wide drop
- Will Tesla's robotaxi reveal live up to hype?
- 'Invisibility' and quantum computing tipped for physics Nobel
- Oil prices extend gains on Mideast tensions, Wall Street falls
- 'Dark day': Victims mourned around the globe on Oct. 7 anniversary
- Mission to probe smashed asteroid launches despite hurricane
- Oil prices extend gains on Mideast tensions, Wall Street slips
- Europe's asteroid mission Hera launches despite hurricane
- Oil prices extend gains on Mideast tensions, Wall Street retreats
- What is microRNA? Nobel-winning discovery explained
- Weather may delay launch of mission to study deflected asteroid
- China to flesh out economic stimulus plans after bumper rally
- Asian markets track Wall St rally on US jobs data
- World marks anniversary of Oct. 7 attack on Israel
- Asian markets track Wall St rally on jobs data
- Cancer, cardiovascular drugs tipped for Nobel as prize week opens
- Tunisia incumbent Saied set to win presidential vote: exit polls
- 'Difficult day': Oct 7 commemorations begin with festival memorial
- Commemorations begin for anniversary of attack on Israel
- Tunisia voting ends as Saied eyes re-election with critics behind bars
- Drowned by hurricane, remote N.Carolina towns now struggle for water
- Two elephants die in flash flooding in northern Thailand
- Tunisia votes with Saied set for re-election
- Too hot by day, Dubai's floodlit beaches are packed at night
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- US trade chief defends tariff hikes when paired with investment
- EU court blocks French ban on vegetable 'steak' labelling
- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
- EU states greenlight extra tariffs on EVs from China
CMSC | -0.53% | 24.57 | $ | |
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Stocks diverge ahead of next Fed rate signal
Stock markets fluctuated on Wednesday as eurozone inflation slowed for the first time in 17 months and investors awaited fresh signals about the US central bank's interest rate plans.
Markets were also buoyed by hopes that China will further ease its strict Covid containment measures following widespread protests, though gains were tempered by leaders' warnings of a crackdown on dissent.
Traders were awaiting a key speech by Federal Reserve chief Jerome Powell, with many expecting him to outline plans for future interest rate hikes to tackle high US consumer prices.
"Will he adopt a more hawkish-minded tone like he did after the last FOMC (Fed policy) meeting or will he have a less hawkish tone?" said Briefing.com analyst Patrick O'Hare.
"His tone is going to move the market's thinking with respect to the path of monetary policy," he said.
Powell was due to speak after government data on Wednesday showed that the US economy grew more than initially reported in the third quarter, reflecting upward revisions to retail spending and some forms of investment.
The London, Paris and Frankfurt stock markets were up in afternoon trading while Wall Street seesawed after the opening, with the Dow falling almost 0.3 percent.
The euro, meanwhile, rose against the dollar as eurozone inflation eased to 10 percent in November, the first drop in 17 months, according to official data.
But this may not lead to an easing of European Central Bank policy as ECB president Christine Lagarde has expressed scepticism that inflation has peaked.
"The ECB is still increasing (interest) rates and this is what traders are focused on," AvaTrade analyst Naeem Aslam told AFP.
Inflation in the bloc had hit a record 10.6 percent in October, boosted also by soaring energy and food bills in the wake of Russia's war in Ukraine.
"Euro area inflation figures surprised on the downside, providing an early indication that the record price pressures seen in recent months may have peaked," added CEBR economist Karl Thompson.
However, he warned that "inflation is nonetheless likely to remain elevated throughout 2023" and forecast rising rates next month.
Global central banks, including the Fed, have ramped up borrowing costs this year in a bid to dampen red-hot inflation that was fuelled also as economies reopened from the pandemic.
- China protests -
In Asia, Asian stocks mostly rebounded as investors looked past weekend demonstrations in China after officials announced moves aimed at softening the zero-Covid strategy.
But in a sign that the leadership was determined to maintain its authority, the country's top security body called for a "crackdown" against "hostile forces".
New clashes broke out in China's southern city of Guangzhou on Tuesday night and into Wednesday, according to witnesses and social media footage verified by AFP.
Data showing China's factory activity shrank further in November underscored the impact the zero-Covid approach has had on the world's second-biggest economy.
Elsewhere, oil prices jumped by more than three percent, with the international benchmark, Brent, reaching almost $87 per barrel.
- Key figures around 1435 GMT -
New York - Dow: DOWN 0.3 percent at 33,768.55 points
London - FTSE 100: UP 1.0 percent at 7,585.80
Frankfurt - DAX: UP 0.2 percent at 14,386.13
Paris - CAC 40: UP 0.7 percent at 6,718.06
EURO STOXX 50: UP 0.7 percent at 3,960.49
Tokyo - Nikkei 225: DOWN 0.2 percent at 27,968.99 (close)
Hong Kong - Hang Seng Index: UP 2.2 percent at 18,597.23 (close)
Shanghai - Composite: UP 0.1 percent at 3,151.34 (close)
Euro/dollar: UP at $1.0384 from $1.0330 on Tuesday
Dollar/yen: UP at 139.31 yen from 138.63 yen
Pound/dollar: UP at $1.2012 from $1.1952
Euro/pound: UP at 86.44 pence from 86.42 pence
Brent North Sea crude: UP 3.1 percent at $86.82 per barrel
West Texas Intermediate: UP 3.4 percent at $80.89 per barrel
burs-lth/imm
X.Cheung--CPN