Global Stock Markets Show Mixed Performance Ahead of Key Earnings Reports and Central Bank Decisions

Stock markets mostly higher before key earnings, rate calls

Leading stock markets mostly rose Tuesday ahead of a slew of interest-rate decisions and earnings from big companies. The main New York indexes were all higher at the open. In Europe, London was slightly lower while continental exchanges were mostly up in afternoon deals. The Federal Reserve is expected to leave US interest rates unchanged Wednesday, and its post-meeting statement will be pored over for confirmation that it will lower borrowing costs in September as inflation falls, with the extent of that cut open to debate. "The market doesn't expect any change in rates, as the September meet remains favourite for the first cut in over four years," said David Morrison, analyst at Trade Nation. "But investors will pay close attention to any shift in emphasis from the last FOMC statement, and Fed Chair Jerome Powell's subsequent press conference will be key," he said, referring to the central bank's policy-making Federal Open Market Committee. Wednesday also sees the Bank of Japan make its own much-anticipated decision over interest rates. The Tokyo stock market closed slightly up Tuesday, while the yen dropped versus the dollar. London's FTSE 100 index was down in mid-afternoon amid some mixed British earnings and as traders gear up for the Bank of England's policy announcement Thursday, with analysts split on whether it will cut rates. Shares in alcoholic drinks maker Diageo, owner of Guinness stout and Johnnie Walker whisky, dropped six percent after it reported slowing sales in some regions. Standard Chartered shares rose six percent after the bank announced a share buyback along with strong half-year results. Paris advanced following data showing the French economy expanded more than expected in the second quarter. Frankfurt also rose despite data showing Germany's economy contracted in April-June. In New York, focus ahead of the Fed's meeting will be on Microsoft as the world's second-largest listed company publishes its latest earnings, noted Joshua Mahony, chief market analyst at traders Scope Markets. "The story appears to be similar for many of these big tech names, with traders on the lookout for signs that the vast sums of money being invested in AI has started to pay dividends," Mahony said. Markets had a rough ride last week after disappointing earnings from heavyweights Tesla and Google-parent Alphabet, which raised questions about the surge in tech giants that has helped power some indices to record highs this year. And investors are steeling themselves for more reports this week from other titans, including Facebook-parent Meta, Apple and Amazon. Starbucks earnings after the market closes in New York will be closely watched to judge consumer sentiment in the United States. McDonald's on Monday posted a rare sales decline that the chain attributed to low-income consumers eating elsewhere as they look to save money. Oil prices extended Monday's retreat on continued worries about demand owing to weakness in the Chinese economy. "For now, concerns over the pace of economic growth, particularly in China and the US, have dampened prices," said Morrison. "It's just a question of where the sellers run out of puff." - Key figures around 1340 GMT - New York - Dow: UP 0.4 percent at 40,684.39 New York - S&P 500: UP 0.4 percent at 5,482.63 New York - Nasdaq composite: UP 0.5 percent at 17,461.88 London - FTSE 100: DOWN 0.2 percent at 8,276.0 points Paris - CAC 40: UP 0.7 percent at 7,494.29 Frankfurt - DAX: UP 0.6 percent at 18,428.64 Euro STOXX 50: UP 0.6 percent at 4,841.87 Tokyo - Nikkei 225: UP 0.2 percent at 38,525.95 (close) Hong Kong - Hang Seng Index: DOWN 1.4 percent at 17,002.91 (close) Shanghai - Composite: DOWN 0.4 percent at 2,879.30 (close) Euro/dollar: DOWN at $1.0815 from $1.0826 on Monday Pound/dollar: DOWN at $1.2833 from $1.2862 Dollar/yen: UP at 154.45 yen from 154.00 yen Euro/pound: UP at 84.29 pence from 84.14 pence West Texas Intermediate: DOWN 0.8 percent at $75.22 per barrel Brent North Sea Crude: DOWN 0.8 percent at $79.13 per barrel

World shares mixed ahead of Fed meeting, as Germany's growth stalls

TOKYO (AP) - World shares were mixed yesterday ahead of key central bank meetings around the world, as Germany reported that its economy contracted in the last quarter. The Federal Reserve (Fed), the Bank of England and the Bank of Japan are holding monetary policy meetings this week. Gross domestic product, the total output of goods and services, rose 0.3 per cent in the second quarter in the 20 countries that use the euro currency, according to official figures released yesterday by European Union statistics agency Eurostat. But Germany, the largest eurozone economy, recorded a 0.1 per cent fall in output. France's CAC 40 rose 0.3 per cent in early trading to 7,468.36, while Germany's DAX added 0.4 per cent to 18,387.13. Britain's FTSE 100 declined 0.5 per cent to 8,254.55. The futures for the S&P 500 and the Dow Jones Industrial Average edged 0.1 per cent higher. In Asian trading, Japan's benchmark Nikkei 225 reversed earlier losses to rise 0.2 per cent and finish at 38,525.95. Australia's S&P/ASX 200 fell 0.5 per cent to 7,953.20. South Korea's Kospi shed one per cent to 2,738.19. Hong Kong's Hang Seng slipped 1.4 per cent to 17,002.91, while the Shanghai Composite index declined 0.4 per cent to 2,879.30. "Markets may be having a tough time positioning the central bank meetings this week," Jing Yi Tan of Mizuho Bank said in a commentary. In Japan, the government reported the nation's unemployment rate in June stood at 2.5 per cent, inching down from 2.6 per cent the previous month, and marking the first improvement in five months. On Monday, The S&P 500 edged up 0.1 per cent and the Dow Jones Industrial Average slipped 0.1 per cent. The Nasdaq composite added 0.1 per cent. Several of Wall Street's biggest names are set to report their results later this week, including Microsoft, Meta Platforms, Apple and Amazon. Their stock movements carry extra weight on Wall Street because they are among the market's largest by total value. Such Big Tech stocks drove the S&P 500 to dozens of records this year, in part on investors' frenzy around artificial intelligence technology, but they ran out of momentum this month amid criticism they have grown too expensive, and as alternatives began to look more attractive.