World Stocks Mostly Higher Thursday 11/30 05:11
World shares were mostly higher Thursday ahead of an update on U.S. consumer
inflation and a meeting of oil producers in Vienna.
BANGKOK (AP) -- World shares were mostly higher Thursday ahead of an update
on U.S. consumer inflation and a meeting of oil producers in Vienna.
U.S. futures rose and oil prices also advanced.
Germany's DAX edged 0.1% higher to 16,189.89 and the CAC 40 in Paris also
gained 0.1% to 7,277.03. Britain's FTSE 100 picked up 0.3% to 7,448.08. The
future for the S&P 500 rose 0.1% and that for the Dow Jones Industrial Average
was up 0.4%.
Later Thursday, the U.S. government is due to release its October data on
the Federal Reserve's preferred measure of inflation. Economists expect that
measure to continue easing, as it has been since the middle of 2022. The
Federal Reserve is expected to keep its benchmark interest rate steady when it
meets in December and to eventually begin paring rates down if inflation
remains under control.
The prospect of a potential easing of interest rates has relaxed upward
pressure on the U.S. dollar, allowing currencies like the Japanese yen to gain.
That could relieve inflationary pressures that have cast the Bank of Japan's
longstanding lax monetary policy into question.
In Asia, Tokyo's Nikkei 225 gained 0.5% on Thursday to 33,486.89.
The Hang Seng in Hong Kong was up 0.2% at 17,030.49. The Shanghai Composite
index added 0.3% to 3,029.67.
An official survey of Chinese factory managers showed manufacturing activity
slowed in November, indicating further weakness in the world's second-largest
economy despite recent signs of improvement.
"The latest surveys suggest that the economy continued to lose steam in
November. However, they may be overstating the extent of slowdown due to
sentiment effects," Sheana Yue of Capital Economics said in a commentary.
South Korea's Kospi advanced 0.6% to 2,535.29. In Australia, the S&P/ASX 200
climbed 0.7% to 7,087.30. In Bangkok, the SET fell 0.7%. India's Sensex gained
0.2% and Taiwan's Taiex picked up 0.4%.
The members of OPEC+, whose oil income props up their economies, were trying
to forge a consensus on production cuts after postponing a meeting originally
set for Sunday.
U.S. benchmark crude oil climbed 68 cents to $78.54 a barrel in electronic
trading on the New York Mercantile Exchange. It gained $1.45 on Wednesday to
$77.86 a barrel.
Brent crude, the international standard, added 74 cents to $83.61 a barrel.
On Wednesday, the S&P 500 closed 0.1% lower and the Dow industrials gained
just 0.1%. The tech-heavy Nasdaq composite fell 0.2% to 14,258.49.
The day brought encouraging news that the U.S. economy grew at a brisk 5.2%
annual pace from July through September, an upgrade from the earlier estimate
of 4.9%. Consumer spending, the lifeblood of the economy, rose at a 3.6% annual
rate from July through September. That's still healthy, but a downgrade from
the previous estimate of 4%.
Treasury yields fell, taking more pressure off of stocks. The yield on the
10-year Treasury, which influences mortgage rates, slipped to 4.29% from 4.33%.
The yield on the 2-year Treasury fell sharply to 4.66% from 4.75%.
In currency dealings, the dollar rose to 147.49 Japanese yen from 147.24
yen. The euro fell to $1.0926 from $1.0971.