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World Stocks Lower on Fed Rate Plans   05/26 05:18

   Major global stock markets were mostly lower Thursday after notes from the 
Federal Reserve's latest meeting confirmed expectations of more interest rate 
hikes but held no surprises to rattle investors.

   BEIJING (AP) -- Major global stock markets were mostly lower Thursday after 
notes from the Federal Reserve's latest meeting confirmed expectations of more 
interest rate hikes but held no surprises to rattle investors.

   London, Tokyo, Hong Kong and Sydney declined. Frankfurt and Shanghai gained. 
Oil prices rose.

   Investors are uneasy over the impact of interest rate hikes in the United 
States and other Western economies to cool surging inflation. Wednesday's Fed 
release showed board members support 0.5-percentage-point hikes at their next 
two meetings. That will weigh on economic activity but already was factored 
into stock prices.

   There were no "hawkish or dovish surprises" or mentions of a bigger 
increase, Anderson Alves of ActivTrades said in a report.

   In early trading, the FTSE 100 in London lost 0.1% to 7,516.42 while 
Frankfurt's DAX gained 0.4% to 14,057.88. The CAC in Paris advanced 0.3% to 
6,320.42.

   On Wall Street, the future for the benchmark S&P 500 index was off 0.1% and 
that for the Dow Jones Industrial Average was little-changed.

   On Wednesday, the S&P 500 index rose 0.9% after from this month's Fed 
meeting showed board members agreed half-point rate hikes "would likely be 
appropriate." That would be double the usual margin of increases.

   The Dow gained 0.6% and the Nasdaq composite climbed 1.5%.

   In Asia, the Shanghai Composite Index gained 0.5% to 3,123.11 while the 
Nikkei 225 in Tokyo lost 0.3% to 26,604.84. The Hang Seng in Hong Kong sank 
0.3% to 20,116.20.

   The Kospi in Seoul declined 0.2% to 2,612.45 after the South Korean central 
bank raised its benchmark interest rate by 0.25 percentage points to 1.75%.

   "With price pressures set to remain elevated in the near term, we expect the 
Bank to continue hiking in quick succession over the coming months," Alex 
Holmes of Capital Economics said in a report.

   Sydney's S&P-ASX 200 ended 0.7% lower at 7,105.90.

   India's Sensex gained 0.8% to 54,173.63. New Zealand declined while 
Southeast Asian markets rose.

   Investors also are worried about the impact of Russia's February invasion of 
Ukraine and an unexpectedly sharp Chinese economic slowdown.

   They hope the Fed can cool inflation that is running at a four-decade high 
without tipping the biggest global economy into recession.

   The Fed raised its key interest rate by 0.5 percentage points at its May 
meeting in its most aggressive move in two decades. It indicated more hikes 
were to come.

   The S&P 500 is coming off of a seven-week series of declines that came close 
to ending the bull market for stocks that began in March 2020.

   In energy markets, benchmark U.S. crude 70 cents to $111.03 per barrel in 
electronic trading on the New York Mercantile Exchange. Brent crude, the price 
basis for international oils, gained 43 cents to $111.55 per barrel in London.

   The dollar declined to 126.63 yen from 127.32 yen. The euro was 
little-changed at $1.0687.

 
 
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