World Shares Mostly Higher After Big Tech Losses Pull Wall St Lower

BANGKOK,— European stocks opened higher on Thursday, following a mixed performance across Asia after a downturn in major technology shares on Wall Street.

According to reports, Germany's DAX increased by 0.7%, reaching 19,394.41 points, while France's CAC 40 also rose by 0.6% to settle at 7,185.13 points. In the UK, the FTSE 100 had a slight gain of 0.2%, closing at 8,290.37 points. Futures for the S&P 500 and Dow Jones Industrial Average saw a small rise of 0.1%, indicating a potential recovery as the U.S. markets prepare for the Thanksgiving holiday.

In Asia, Japan's Nikkei 225 index climbed by 0.6%, moving to 38,349.06 points. Meanwhile, Australia's S&P/ASX 200 experienced an advancement of 0.5%, reaching 8,444.30 points. South Korea's Kospi index increased slightly by 0.1% to 2,504.67 points after the country's central bank decided to lower the benchmark interest rate by a quarter-point to 3% to support economic growth. However, the Bank of Korea has cut its growth forecasts, now predicting 2.2% economic growth for 2024, decreasing further to 1.9% in 2025.

Contrarily, Chinese stocks faced declines, with Hong Kong's Hang Seng index falling by 1.2% to 19,366.96 points. The Shanghai Composite index also slipped by 0.4% to 3,295.70 points as investors looked to lock in profits after recent gains.

Meanwhile, major U.S. technology companies, such as Microsoft and Meta, had a significant impact on the broader market. On Wednesday, the Nasdaq composite, which predominantly comprises tech stocks, decreased by 0.6%, while the S&P 500 and Dow Jones Industrial Average fell by 0.4% and 0.3%, respectively. The drop in tech shares has been linked to rising investor concerns regarding high expectations for corporate earnings and persistent inflation pressures.

On the economic front, the U.S. Commerce Department announced a solid annual growth rate of 2.8% for the economy in the third quarter. This growth was attributed to strong consumer spending and a notable increase in exports. However, the latest earnings reports from prominent retailers offered a mixed outlook. For instance, department store chain Nordstrom reported an 8.1% decline in its stock following warnings of slower sales, while Urban Outfitters stock surged by 18.3% after exceeding analysts’ expectations.

U.S. inflation data also indicated stability, with the personal consumption expenditures (PCE) index, considered the Federal Reserve's preferred measure, rising to 2.3% in October, up from 2.1% in September. This increase suggests inflation may be stabilizing near the Federal Reserve's 2% target, pushing speculation about future interest rate adjustments. After reaching a two-decade high in 2023, the Fed has recently begun lowering rates.

In commodities, crude oil prices experienced slight declines, with U.S. benchmark crude decreasing by 28 cents to $68.44 per barrel. Brent crude fell by 26 cents to close at $72.04 per barrel. In currency markets, the U.S. dollar appreciated against the Japanese yen, rising to 151.90 yen from the previous 151.12 yen, while the euro dipped slightly to $1.0547 from $1.0567.

With the U.S. markets set to close for Thanksgiving, trading volumes were lighter as many investors awaited economic data and decisions from central banks that may influence market trends in the upcoming weeks.

Stocks, Markets, Economy