Global stocks mixed ahead of US GDP, Europe rates decision
BEIJING (AP) — Global stock markets were mixed Thursday ahead of an update on the U.S. economy and a European Central Bank meeting that is expected to raise its key interest rate to a 13-year high to fight stubborn inflation.
London and Hong Kong advanced, while Frankfurt, Tokyo and Shanghai declined. Wall Street futures rebounded.
Forecasters expect U.S. government data to show the economy grew in the three months ending in September following two quarters of contraction. Other indicators including housing sales suggest activity is cooling following rate hikes to rein in inflation that is at a 40-year high.
The ECB, which manages the euro currency used by Germany, France and 17 other countries, is expected to raise its benchmark lending rate by up to 0.75 percentage points.
Traders worry this year's aggressive rate hikes might tip the global economy into recession.
The ECB will “have to turn a blind eye” to signs of slowing activity “as it battles to bring inflation back under control,” Fawad Razaqzada of StoneX said in a report.
In early trading, the FTSE 100 in London gained 0.3% to 7,077.49 while the DAX in Frankfurt lost 0.4% to 13,146.01. The CAC 40 in Paris sank 0.6% to 6,241.22.
On Wall Street, the future for the benchmark S&P 500 index was up 0.2%. That for the Dow Jones Industrial Average gained 0.3%.
On Wednesday, the S&P 500 index fell 0.7%, breaking three days of gains after Microsoft and the parent companies of Google and Facebook reported weaker-than-expected profit or revenue.
The tech-heavy Nasdaq composite dropped 2%. The Dow ended little changed.
The yield on the 10-year Treasury, or the difference between the day’s market price and the payout at maturity, fell to 4.01% from 4.10% late Tuesday as investors shifted money into bonds. The...
