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World Shares Mixed on Inflation Update 07/16 04:52
Shares were mixed Wednesday in Europe and Asia after an update on U.S.
inflation pulled most Wall Street stocks lower, though gains for Nvidia pushed
the Nasdaq to another record.
BANGKOK (AP) -- Shares were mixed Wednesday in Europe and Asia after an
update on U.S. inflation pulled most Wall Street stocks lower, though gains for
Nvidia pushed the Nasdaq to another record.
The report showed inflation in the United States accelerated to 2.7% last
month from 2.4% in May. Economists said higher prices for clothes, toys and
other goods that usually are imported suggest stiffer tariffs that President
Donald Trump has imposed on other countries are fueling inflation.
Germany's DAX edged 0.1% higher to 24,074.54, while the CAC 40 in Paris shed
0.1% to 7,755.90. Britain's FTSE 100 was up 0.1% at 8,950.11.
The future for the S&P 500 fell less than 0.1% while that for the Dow
industrials was little changed.
In Asian trading, tokyo's Nikkei 225 edged less than 0.1% lower, to
39,663.40. Investors are focusing on the potential impact of an election for
the Upper House of Parliament on Sunday that is expected to lead to tax cuts
and higher spending as lawmakers try to restore the waning popularity of the
ruling Liberal Democrats.
Worries over a deterioration in Japan's fiscal health have pushed yields of
long-term Japanese government bonds to their highest levels in years.
"What's at stake isn't simply which party hands out the biggest bundle of
goodies. It's whether the walls holding up Japan's house of debt can withstand
another round of fiscal fireworks..." Stephen Innes of SPI Asset Management
said in a commentary.
Elsewhere in Asia, Hong Kong's Hang Seng shed 0.3% to 24,517.76, while the
Shanghai Composite index slipped less than 0.1% to 3,503.78.
South Korea's Kospi lost 0.9% to 3,186.38 and in Australia, the S&P/ASX 200
declined 0.8% to 8,561.80.
Taiwan's Taiex jumped 0.9% and India's Sensex added 0.2%. Thailand's SET
dropped 0.3%.
In Jakarta, shares rose 0.7% after President Donald Trump said on Truth
Social that he plans to charge imports from Indonesia a tariff of 19%, while
American goods sent to the Southeast Asian country will face no tariffs. Trump
also said Indonesia committed to buying U.S. energy, agricultural products and
aircraft.
On Tuesday, the S&P 500 fell 0.4%, staying near its all-time high set last
week. The Dow Jones Industrial Average dropped 1%, while the Nasdaq composite
rose 0.2% to a record 20,677.80 thanks to Nvidia, the market's most influential
stock.
Nvidia said the U.S. government has assured it that licenses will be granted
for its H20 chip, used for artificial intelligence, again and that deliveries
will hopefully begin soon. Its 4% gain was by far the strongest force pushing
upward on the S&P 500.
Wall Street loves lower interest rates because they goose prices higher for
stocks and other investments, and Trump himself has been clamoring for the
Federal Reserve to cut rates more quickly. But the Fed has been keeping
interest rates on hold this year since lower rates can give inflation more fuel
while they boost the economy. Fed Chair Jerome Powell has insisted he wants to
see more data about how tariffs affect the economy and inflation.
In other dealings early Wednesday, U.S. benchmark crude oil shed 21 cents to
$66.31 per barrel. Brent crude, the international standard, slipped 31 cents at
$68.40 per barrel.
The dollar fell to 148.79 Japanese yen from 148.87 yen. The euro was at
$1.1630, up from $1.1602.
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