The latest results from retailers show that spending remains solid, even as American consumers face the hottest inflation in 40 years. The latest government report on consumer prices showed that inflation essentially stalled from June to July. US stocks had their best month in a year and a half in July and the winning streak has been continuing into August, partially on hopes that inflation is easing. The market's latest gyrations came as traders cautiously reviewed mostly encouraging financial results from major US retailers. But domestic travel and shopping appear to be back, boosting consumption. Ambulances have had to circle for hours looking for hospitals that could accept patients.
New COVID-19 cases have been surging in recent weeks as restrictions on economic activities ease. Soaring oil prices and the sliding yen were key factors. In Japan, government data showed a trade deficit in July for the 12th consecutive month.
New Zealand's inflation is running at 7.3% and unemployment at 3.3%. Lower oil prices had given some reprieve from inflation, the bank said, but it needed to continue tightening monetary conditions until inflation was brought back to its target range of 1% to 3%. The Reserve Bank of New Zealand said domestic spending had remained resilient in the face of local and global headwinds, and employment was robust. In New Zealand, the central bank raised its benchmark interest rate from 2.5% to 3% as it continues trying to battle inflation. Hong Kong's Hang Seng added 0.5% to 19,922.45, while the Shanghai Composite edged up 0.5% to 3,292.53. Japan's benchmark Nikkei 225 added 1.2% to finish at 29,222.77. China's zero-COVID' policy is still an important headwind for global growth, said Anderson Alves at ActivTrades. S&P 500 futures fell 0.6% to 4,284.25.Īnalysts warned major risks remain, such as surging COVID-19 cases in some countries in Asia, along with worries about global inflation and China's policies to curb infections.Įxpectations of economic growth in China and the US will likely remain key to gauging recession fears. US shares were set to drift lower with Dow futures down 0.4% at 33,995.0. Shares fell in South Korea.įrance's CAC 40 fell 0.3% to 6,570.14 in early trading, while Germany's DAX slipped 0.7% to 13,812.17.
MIXED IN KEY 6 DRIVERS
Global shares were mixed Wednesday as markets looked to strong economic signs out of the US and China as drivers of growth.Įuropean shares slid in early trading, while benchmarks finished higher in Japan, China and Australia.
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